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Business and CSR (Corporate social responsibility)

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Umer Gulzar
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5 views2 pages

Business and CSR (Corporate social responsibility)

Uploaded by

Umer Gulzar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Corporate social responsibility (CSR) is a self-regulating business model that

helps a company be socially accountable—to itself, its stakeholders, and the public

Purpose:

CSR is a thoughtful and practical way to give back to society. When businesses are conscious of
their social and environmental impact on the world, they can benefit society by giving back and
helping to find solutions to everyday issues.

The potential benefits of CSR to companies include:

• better brand recognition.


• positive business reputation.
• increased sales and customer loyalty.
• operational costs savings.
• better financial performance.
• greater ability to attract talent and retain staff.
• organizational growth.
• easier access to capital.

Types of CSR:

Environmental Sustainability Initiatives

Environmental sustainability initiatives enacted by businesses generally focus on two main


areas: limiting pollution and reducing greenhouse gases. As the awareness of environmental
issues grows, businesses that take steps to reduce air, land and water pollution can increase their
standing as good corporate citizens while also benefiting society as a whole. For example, Cisco
Systems, a multinational technology company, has taken a variety of steps to reduce its carbon
footprint, including the installation of photovoltaic systems at production facilities and
developing platforms that allow employees to work from remote locations rather than
commuting to the office.
Direct Philanthropic Giving

Philanthropic initiatives include the donation of time, money or resources to charities and
organizations at local, national or international levels. These donations can be directed to a
variety of worthy causes including human rights, national disaster relief, clean water and
education programs in underdeveloped countries. For example, Microsoft co-founder Bill Gates
has donated billions of dollars to the Bill and Melinda Gates Foundation, which supports
numerous causes including education, the eradication of malaria and agricultural development.
In 2014, Bill Gates was the single largest giver in the world, donating $1.5 billion in Microsoft
stock to the Bill and Melinda Gates Foundation.

Ethical Business Practices

The primary focus on ethics is to provide fair labor practices for businesses’ employees as well
as the employees of their suppliers. Fair business practices for employees include equal pay for
equal work and living wage compensation initiatives. Ethical labor practices for suppliers
include the use of products that have been certified as meeting fair trade standards. For example,
Ben and Jerry’s Ice Cream uses fair trade-certified ingredients like sugar, cocoa, vanilla, coffee
and bananas.

Focus on Economic Responsibility

Economic responsibility focuses on practices that facilitate the long-term growth of the business,
while also meeting the standards set for ethical, environmental and philanthropic practices. By
balancing economic decisions with their overall effects on society, businesses can improve their
operations while also engaging in sustainable practices. An example of economic responsibility
is when a company modifies its manufacturing processes to include recycled products, which
could benefit the company by potentially lowering the cost of materials and also benefit society
by consuming fewer resources.

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