Corporate social responsibility (CSR) is about how organizations manage their operations to impact society positively. CSR means that a business is held accountable either to itself, the community, or stakeholders for its social, environmental, and economic impacts.
There are three aspects to CSR as follows:
- The impact of the organization’s products or services.
- The impact of operations which could relate to the environment or sustainability. Or they could be social affecting inclusion and diversity.
- The impact of corporate citizenship initiatives on the local community.
Examples Of CSR Programs
Here are some examples of CSR programs organizations have introduced.
- Switching to energy-efficient lighting
- Moving business processes online to reduce paper in the workplace
- Using renewable energy sources
- Donating outdated tech equipment to local charities
- Offering fair wages and developing ethical labor policies
- Sharing expertise with charities and not-for-profits or donating a percentage of profits to worthy causes
- Encouraging and allowing staff to volunteer in the community, for example, community clean-ups, delivering food parcels, workplace blood donation schemes
What Are The Benefits Of CSR?
CSR programs improve your brand profile with consumers. Increasingly consumers are making buying decisions based on an organization’s socially conscious image. Research shows that 77 percent of consumers are motivated to purchase from businesses committed to making the world a better place.
And CSR can be just as important when attracting and retaining workers. Companies with strong CSR profiles do better in the labor market. According to research from Deloitte, this is undoubtedly the case for socially aware Millennials and Gen Zers. Culture, diversity, and high impact are more important than financial benefits for younger generations.
Furthermore, the evidence suggests that workers who share company values are more likely to stick around. Research from Deloitte reported that purpose-driven organizations have 40 percent better retention than their competitors.
Finally, robust CSR practices can make you more attractive to investors. Just like consumers and workers, investors are holding organizations accountable when it comes to social responsibility.