Introduction to CSR

Corporate social responsibility is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and international norms.

Some common international standards followed by corporations are ISO 26000, Global Reporting Initiative, UN Global Impact and several others. Corporate social responsibility not only deals with corporate philanthropy but also other issues that affect the environment, consumers, human rights, supply-chain sustainability and transparency for the greater good of the world at large. Businesses that integrate social responsibility into their missions acknowledge that their business processes have an impact beyond the company.

CSR or business responsibility can also be described as an approach by which a company:

1) Recognizes that its activities have a wider impact on the society in which it operates, and that development in society and consumer satisfaction, in turn, affects its ability to pursue its business successfully;
2) Actively manages the economic, social, environmental and human rights impacts of its activities across the world, basing them on principles which reflect international values, reaping benefits both for its own operations and reputation as well as for the communities and consumers in areas in which it operates;
3) Seeks to achieve these benefits by working closely with other groups and organizations – local communities, civil society, other businesses, and home and host governments.

Why is Corporate Social responsibility good for corporates?

A Better Public Image
A corporation’s public image is at the mercy of its social responsibility programs and how aware consumers are of them. For example, if a company is proactively involved in the practice of donating funds or goods to local nonprofit organizations and schools, this increases the likelihood that a consumer will use their product. Additionally, if a corporation takes great care to ensure the materials used in its products are environmentally safe and the process is sustainable, this goes a long way in the eye of the public. 

Better and More Media Coverage
Going along with how the public sees your corporation, the amount of positive media coverage a corporation receives is extremely important for business. It doesn’t matter how much your company is doing to better society if no one knows about it. How much good a company can do in the local communities, or even beyond that, is corporate social responsibility? And the better the benefits, the better the media coverage. 

Fosters a Positive Workplace Environment
This section is short and simple because it’s just common sense – employees like working for a company that has a good public image and is constantly in the media for positive reasons.