Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.
By practicing corporate social responsibility, organizations can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.
To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them.
CSR is important because it demonstrates that a business takes an interest in wider social issues than just those that impact profit margins. Involvement in CSR attract customers who share the same values, which makes it good business sense to operate sustainably.
In fact, one study showed how organizations that had a genuine commitment to CSR substantially outperformed those that did not, with an average return on assets 19 times higher. Additionally, the study showed that CSR-orientated companies had a higher level of employee engagement and provided a markedly better standard of customer service.
Businesses can practice social responsibility by donating money, products or services to social causes and nonprofits. Larger companies tend to have plentiful resources that can benefit charities and local community programs. However, small businesses can also make a big impact in their communities by their philanthropical efforts no matter how small.
Besides maintaining a positive reputation, CSR helps corporations increase employee loyalty. Treating employees fairly and generously is a part of corporate social responsibility. By providing good jobs and encouraging high professional and moral standards. Additionally, by procuring only those overseas products produced at factories where workers were treated ethically, you gain support among “Fair trade” advocates.
Effective CSR strategies also prevent financial ramifications. Compliance with the spirit and letter of the law — both nationally and internationally — through self-regulatory processes will prevent fines, put your business low on the radar screens of regulators and lower legal expenses.
Corporations and online businesses can use their websites to engage customers in CSR by helping the environment through website sustainability, or allowing clients to choose a charity that receives a portion of profits.
Want to learn more? Tonex offers Corporate Social Responsibility Training, a 2-day course that covers the principals and methods of corporate social responsibility (CSR) as well as the best practices and effective strategies required to reach a sustainable business.
Other Training categories include:
- Executive Leadership
- Business Intelligence and Business Writing
- Operations Management Training and Change Management
- People Management and Performance Management
- Product and Project Management Training
- Project Management Certification
- Entrepreneurship and Leadership Training
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