Corporate social responsibility
In this article we will elaborate you the corporate social responsibility in business with importance and actions.
Corporate Social Responsibility (CSR) is an international term used to refer to corporate responsibility , but it is a somewhat vague definition. In essence, corporate social responsibility refers to the moral and ethical obligation of companies in their relationships with employees , the environment, competition, the economy and other areas of life that a company can invade.
Corporate social responsibility is understood as a commitment voluntarily assumed by a company with respect to certain rules that go beyond its legal obligations. In this sense, companies that operate responsibly and attend to morality can often benefit from this corporate social responsibility. It has been proven that those companies that voluntarily commit to a good cause improve their public image at the same time.
Corporate social responsibility is nothing more than a set of actions and initiatives taken by companies seeking, on a completely voluntary basis, to contribute to issues of ethics, the environment and society.
In this way, unlike donation practices, which happen sporadically and at strategic periods, corporate social responsibility is a value that is put into practice in a perennial and constant manner at all times and in all modes of operation of the company.
The 5 principles that govern CSR
- 1. Compliance with legislation
- 2. Global and transversal
- 3. Ethics and coherence
- 4. Impact management
- 5. Satisfaction of expectations and needs
The three areas of corporate social responsibility in business
Since corporate social responsibility is a very vague term, there are several approaches to structuring the underlying concept. A relatively popular model is Stefanie Hiß’s responsibility model , whereby CSR is divided into three areas, each of which is named depending on the nature of its public activity:
- The area of internal responsibility includes all internal strategies and processes that do not reach the public, but that essentially determine the ethical orientation of the company .
- The core area of responsibility includes all those fields that are publicly effective and have a direct effect on the environment, people and society and that remain part of the normal work process .
- All fields of action belong to the area of external responsibility , meaning that a company becomes charitably active (usually in economic terms) and interrupts or adapts its daily work if necessary. The “Hiß” model is suitable to illustrate the different areas of CSR.
5 great examples of companies with corporate social responsibility in business
To understand exactly what Corporate Social Responsibility consists of, it is best to look at some examples of companies that have already successfully implemented CSR policies .
Danone has become a great example of a company with CSR. To its initial commitment to improving people’s nutrition, an increasingly sustainable production model has been added , as well as its own Animal Welfare protocol , developed jointly with the animal rights association Compassion in World Farming (CIWF).
This company establishes lasting relationships with local ranchers with the aim of improving the development of their communities and reducing the environmental impact of their activities. Thus, as the first mass consumption company certified by B Corp in our country, Danone’s purpose transcends its business and claims an economy at the service of people.
Laia Mas, Director of Corporate Affairs and Sustainability at Danone Iberia, points out that “our mission is to be part of the engine of change in society through a production model that takes into account the social, environmental and economic impact.”
General Electrics ‘ CSR plan , known as Ecomagination, has been in place since 2002. Through innovation , it addresses three challenges related to sustainability: the energy transition and climate change, precision medical care for all people and a future with more efficient flights.
The Tier 4 locomotives , in service since 2017, are the most palpable result of its CSR, since these trains reduce their emissions by up to 85% compared to previous models.
Another company with exemplary corporate social responsibility is IKEA . The popular Swedish furniture company has been developing CSR for many years based on three challenges: facilitating sustainable and healthy living in homes, a production model with a circular and environmentally friendly approach, and fair and equal treatment in all its operations. business relationships.
One of its last major milestones was the withdrawal of all single-use plastic products in both its stores and restaurants . They also highlight their actions to combat poverty and climate change , through the IKEA Foundation , which actively works to improve the quality of life of those people who have few resources.
The Natura company was born in 1992 with the aim of finding a balance between profitability and principles . In this way, its CSR is implicit in its way of being and, over the years, it has shown that it is possible to be profitable as well as sustainable. Without going any further, in 2020, Natura was recognized as one of the most ethical companies in the world in the ranking prepared by the Ethisphere Institute .
And, so far, they have managed to eliminate 100% of the plastic in the packaging of all their online orders , use green energy in 86% of their stores and have an efficient recycling system throughout their production chain. In addition, most of its products are made sustainably, reducing the consumption of materials and supplies to a minimum.
ONCE classifies all its CSR actions in the Master Plan which, in turn, is aligned with the Sustainable Development Goals (SDG) of the United Nations 2030 Agenda. The strategic lines of its actions focus on the quality and innovation of its social services, lotteries, the development of people’s talent, good governance, sustainability and ethics.
Likewise, it shows its commitment both to the environment, minimizing its environmental footprint , and to the social sphere, being one of the leading companies in the integration of people with some type of disability.
The importance of corporate social responsibility in business
We are in a moment of globalization, in which environmental and social problems belong to everyone and, therefore, actions in this regard are also everyone’s responsibility and we will all benefit from the results. At Acebron Group we are aware of the importance of the role that companies play in sustainable development, due to their ability to proactively generate actions, seeking the concerns and concerns of interest groups to create solutions voluntarily. Due to the possibility of action and influence, we believe that it is important for companies to take part and become socially responsible companies, to contribute to improvement and to serve as an example for other companies.
Its importance lies in the fact that it is a way of generating sustainable businesses, with measures, culture and values that allow them to last in the long term, since CSR contributes to improving the conditions of the labor market, and in the case of the production of goods, care for and improve the environment.
Today, being socially responsible has a significant impact on a company’s reputation and image, especially as an employer brand.
New generations of workers are increasingly aware of the need for organizations and individuals to join efforts to care for the environment and create more tolerant and inclusive societies.
7 benefits of corporate social responsibility
Internally, being a socially responsible company brings benefits in the following areas:
1. Recruitment and retention of personnel
People admire companies that value their employees, in addition to the fact that in the new generations there is a marked preference for those organizations with a social and environmental commitment, that promote multiculturalism and diversity.
2. Greater productivity
It occurs through better conditions for the internal client, which leads to better talent retention and therefore, low turnover rates.
3. Customer and supplier loyalty
In addition to quality and price, clients or suppliers demand information on production and subcontracting conditions, among others, so a socially responsible company will have an important advantage in this aspect.
The company that is respectful of people, communities, the environment and society as a whole, projects a reputation that generates trust in business partners and clients.
5. Greater consumer loyalty
People admire those companies that develop social projects, care about the environment and invest efforts against corruption. Therefore, social responsibility is a factor that guarantees the loyalty of the final consumer.
6. Evaluation of the image and brand
Social responsibility practices add value to businesses and can become a differentiator for business strategies.
7. Improve energy efficiency
Joining initiatives in favor of the environment brings with it energy efficiency measures, among other initiatives to reduce the consumption of natural resources. With this, in addition to minimizing negative impacts on the environment, they generate savings in energy consumption.