In today’s society, Corporate Social Responsibility – CSR is seen by some as “the right thing to do”. The business case remains extremely compelling, particularly as companies battle ever increasing competition and declining consumer confidence.
The world is ever changing as impact of our activities is being felt in more and more ways.
So What Is Corporate Social Responsibility?
Wikipedia defines CSR a form of corporate self-regulation integrated into a business model. CSR is about business giving back to society.
“A continuing commitment by organizations to balance performance with contributions to quality of life of employees – local community and society at large, so business evolves to focus on more than just the financial bottom line” is how the ACCSR (Australian Centre for Corporate Social Responsibility) views the role of today’s socially responsible business.
Corporate citizenship can involve incurring short term costs that do not provide immediate financial benefit to the company. Instead it promotes positive social and environmental change.
CSR drives innovation for key industries. Informed sustainability reporting is providing greater transparency because big business is under increasing pressure from government to make a positive contribution or at least reduce negative impact.
CSR is about building relationships with customers, attracting and retaining talented staff, managing risk and assuring reputation. Success in business and commitment to social responsibility, can and do, go hand in hand.
Well managed CSR supports the business objective of the company. It builds relationships with key stakeholders whose opinion will be most valuable when times are hard and should reduce business costs and maximize effectiveness.
Value of Wealth Creation To Society
Social responsibility in business becomes an integral part of the wealth creation process by enhancing the competitiveness of business and maximizing the value of wealth creation to society.
Companies have a lot of power in the community and in the national economy because of their huge assets. Therefore they are able to devote real time and money to environmental sustainability programs and various social welfare initiatives. This benefits employees, customers and the community at large.
Top 10 Reasons To Be A Socially Responsible Business
A sustainability survey report by Price Waterhouse Coopers lists the top 10 reasons why companies are deciding to be more socially responsible as:
- Enhanced Reputation
- Competitive Advantage
- Cost Savings
- Industry Trends
- CEO/Board Commitment
- Customer Demand
- SRI Demand
- Top Line Growth
- Shareholder Demand
- Access to Capital.
Current economic conditions have created an environment in which CSR has become increasingly challenging and acutely necessary, not just a fringe benefit. In fact, CSR often results in improving efficiency of organizations during tough times.
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