Corporate social responsibility is a philanthropic act of giving back to the community. Businesses are increasingly embracing corporate social responsibility (CSR) to manage their risk, build customer loyalty, bolster brand value, attract new talent, and boost employee engagement.
According to a service-based company Deloitte, companies are no longer appraised on the basis of traditional metrics like product or service quality or financial performance. Consumers want to know what corporations are doing for their communities. Being socially responsible brings prestige and recognition to organizations.
A CSR survey report by AFLAC shows that 77 percent of consumers are motivated to purchase from enterprises committed to making the world better. The AFLAC CSR survey report further suggests that 73 percent of investors are of the opinion that efforts to enhance the environment and uplift society, significantly contribute to their investment decisions. Read on to learn more about CSR, its various types, and why companies engage in it.
What is corporate social responsibility?
Corporate social responsibility implies the ‘social contract’ between business and society. The Committee for Economic Development introduced the concept of ‘social contract’ in 1971. The existence of CSR can be traced back to more than a century, before American economist Howard Bowen coined the term ‘corporate social responsibility in his book ‘Social Responsibilities of the Businessman’ in 1953.
By the 1980s, more companies began incorporating social interests in their business practices to bolster their brand reputation. In the contemporary business landscape, corporate social responsibility has become an essential strategy among corporations to make a difference in society and build a positive brand. .
Types of corporate social responsibility
Corporate social responsibility has been classified into four types:
|Types of CSR||Examples|
|Philanthropic responsibility||Funding educational programs, donating to causes, or supporting health initiatives.
|Environmental responsibility||Reducing pollution, emission of greenhouse gas, and single-use plastics.
|Economic responsibility||Increased use of recycled products, generating a consistent level of profitability and operating the firm at a high-efficiency level.|
|Ethical responsibility||Improving labor practices, setting a higher minimum wage, gender equality, and competitive pay for all employees.|
Benefits of CSR for businesses
Corporate social responsibility is a moral obligation toward stakeholders and society to act responsibly. Consumers have become more conscious of climate change, unfair labor practices, gender inequality, and human rights violation. Thus, corporations are increasingly embracing CSR in their business practices to build a name for themselves and contribute mainly to the society in which they exist. IKEA, Google, Microsoft, and Coca-Cola are some top multinational corporations with the best reputations in CSR.
Why should you opt for a corporate social responsibility course?
Studying corporate social responsibility provides foundations to develop and manage CSR strategies effectively. The course focuses on the importance of CSR and the frameworks used by the world’s largest companies. Pursuing a course in CSR will allow you to improve a company’s environmental footprint, transparency, waste management, and human rights performance.
Upon completing the course, you will be able to attract customers with the same values, boost profit margins, and develop inspiring initiatives for businesses. You can consider a CSR course in a top Canadian university to qualify to take the Foundational Technologies Institute (FTI) examination. Sign up now!