Corporate Social Responsibility (CSR) is a business concept where companies aim to offset their impact on society while improving corporate practices. CSR programs are often included in a company’s mission statement and code of ethics, with a department managing social programs. The scope of CSR programs varies, from improving employee conditions to charitable initiatives. Supporters suggest that CSR programs show a genuine desire to do business ethically, while detractors believe it is a smokescreen for more egregious issues.
Corporate Social Responsibility (CSR) is a concept in the business world. At the end of the 20th century, an increasing number of companies began to think about their impacts on society as a whole, mainly as consumers became more aware of corporate activities around the world. Many of these companies have decided to embark on Social Responsibility programs designed to offset some of their effects on the world while at the same time improving corporate practices. CSR has fans and detractors, as you can imagine; the fact that the issue has become so publicized is seen as a positive start by many people on both sides.
A company that has decided to establish a Corporate Social Responsibility program often includes a discussion of the program in its mission statement and code of ethics, making the program’s existence transparent to shareholders and other stakeholders. Most companies also have a CSR department, which manages the company’s social programs and ensures that the company’s efforts remain in the public eye.
The scope of a Corporate Social Responsibility program tends to be more varied. Many companies start at home, trying to build in conditions for their employees, with offers like higher wages and health benefits. The next step usually addresses corporate suppliers, domestic and foreign, with a focus on creating a sustainable supply chain, without the use of child labor and other ethically questionable practices.
Many companies also add a charitable aspect to their Corporate Social Responsibility programs. For example, a company that sells coffee might sponsor community development initiatives in coffee-growing regions, while an oil company might contribute to habitat restoration in an area historically used for resource extraction. Other companies simply donate large amounts of funds to charities of choice, often finding charities tied to their own work.
CSR fans suggest that these voluntary efforts by companies show a genuine desire to do business ethically and responsibly. Some more cynical fans also point out that companies known for their CSR programs tend to retain employees longer and pick the crop when it comes to employees and suppliers, thanks to the interest in ethical business practices among many new graduates and small businesses. . Additionally, as Corporate Social Responsibility is a topic of growing interest, companies that advertise these programs generally perform well in the marketplace, with consumers actively seeking out their products.
Detractors believe, however, that CSR is simply a smokescreen or window covering more egregious issues. By putting their ethical initiatives at the forefront, companies can ignore a major consumer concern. For example, an automobile company can distract consumers with an advertising campaign about an environmentally sustainable factory, while continuing to produce extremely inefficient vehicles that rely on fossil fuels.
Asset Smart.
Protect your devices with Threat Protection by NordVPN
