What is meant by Corporate Social Responsibility?
CSR -also called corporate citizenship or sustainable responsible business- is a form of corporate self-regulation integrated into a business model.
Work CSR policy functions as a built-in?
Yes, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.
What is the goal of CSR?
To embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere.
What about practices that harm the public sphere, regardless of legality?
CSR-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality.
Are public interests included in corporate decision-making?
CSR is the deliberate inclusion of public interest into corporate decision-making, that is the core business of the company or firm, and the honouring of a triple bottom line: people, planet, profit.
Are there different approaches for CSR?
1. community-based development approach
2. philanthropy approach
3. incorporate approach
4. Creating Shared Value approach
Community-based development approach
In this approach, corporations work with local communities to better themselves. (e.g. Flower Valley, fair trade, etc.)
This includes monetary donations and aid given to local organizations and impoverished communities in developing countries. Some organizations do not like this approach as it does not help build on the skills of the local people, whereas community-based development generally leads to more sustainable development.
Incorporation of the CSR strategy directly into the business strategy of an organization. For instance, procurement of Fair Trade tea and coffee has been adopted by various businesses.
Creating Shared Value approach
The shared value model is based on the idea that corporate success and social welfare are interdependent. A business needs a healthy, educated workforce, sustainable resources and adept government to compete effectively. For society to thrive, profitable and competitive businesses must be developed and supported to create income, wealth, tax revenues, and opportunities for philanthropy.
Can CSR be benchmarked?
Many companies use the strategy of benchmarking to compete within their respective industries in CSR policy, implementation, and effectiveness.
What does the benchmark involves ?
Benchmarking involves reviewing competitor CSR initiatives, as well as measuring and evaluating the impact that those policies have on society and the environment, and how customers perceive competitor CSR strategy.