17 Sep What is Corporate Social Responsibility? Why is it important?
What is Corporate Social Responsibility(CSR)?
Corporate social responsibility can refer to any effort to improve a company’s eco-friendliness and increase its social impact.
Firms that embrace corporate social responsibility are typically organized in a manner that empowers them to be and act in a socially responsible way. It’s a form of self-regulation that can be expressed in initiatives or strategies, depending on an organization’s goals.
Benefits of Corporate Social Responsibility
- Improved public image.
- Increased brand awareness and recognition.
- An advantage over competitors.
- Increased customer engagement.
- Greater employee engagement.
- More benefits for employees.
TYPES OF CORPORATE SOCIAL RESPONSIBILITY
1. Environmental Responsibility
- Reducing pollution, greenhouse gas emissions, the use of single-use plastics, water consumption, and general waste
- Increasing reliance on renewable energy, sustainable resources, and recycled or partially recycled materials
- Offsetting negative environmental impact; for example, by planting trees, funding research, and donating to related causes.
2. Ethical Responsibility
Ethical responsibility is concerned with ensuring an organization is operating in a fair and ethical manner. Organizations that embrace ethical responsibility aim to achieve fair treatment of all stakeholders, including leadership, investors, employees, suppliers, and customers.
3. Philanthropic Responsibility
Philanthropic Responsibility refers to a business’s aim to actively make the world and society a better place.
In addition to acting as ethically and environmentally friendly as possible, organizations driven by philanthropic responsibility often dedicate a portion of their earnings.
4. Economic Responsibility
Economic responsibility is the practice of a firm backing all of its financial decisions in its commitment to do good in the areas listed above. The end goal is not to simply maximize profits, but positively impact the environment, people, and society.