Corporate Social Responsibility and Its Importance
Corporate social responsibility is the initiative for the assessment and taking responsibility for the effects of the company on environmental and well-being of the society. The term applies to the efforts that go far behind what is required from the regulators or the groups that consider environmental protection. It can also be known as corporate citizenship, and it may also involve incurring the costs for short-term that might or might not offer an immediate financial benefit to the company. Instead, it may promote environmental, social and positive change in the organisation.
Let’s know how important is CSR in the working of the organisation
CSR has become one of the regular business practices of today’s time. The companies who are committed to CSR, they enjoy a good reputation and better functioning due to obvious reasons, it indicates that they stand for and with their statements what they have given to the society.
The overall aim of the companies is to achieve a positive impact on the society with the maximisation of the creation of values those are shared for the owners of the business, stakeholders and shareholders.
Corporate social responsibility program
Across the corporate world, there are some factors that drive companies to pursue a CSR agenda are fairly consistent. However, once the company decides to adopt CSR oriented activities, a plan must be implemented for taking forward the agreed CSR program.
Helps in improving the public image
There are the companies that follow their commitment to various causes that are perceived as more generous than the one whose CSR endeavours are non-existent. A company’s public image depends on its social responsibility programs, and it matters how aware the customers are of these programs. The companies can easily improve their public image by having support towards non-profits through, volunteerism, donations, services and strong partnerships.
If the companies publicise their efforts and let the people know about their generosity, they increased their chances of becoming favourable and highlighted in front of the customers.
• Increased media coverage
It does not matter how much your company is putting efforts for the environment if nobody knows about it. You have to make sure that you are forming relationships with local media so they will be more likely to cover the stories that you ask them to cover. Corporate social responsibility is defined by how much efforts can a company put for the benefit of the society or the local community.
More the benefits more will be the media coverage. If we look at the other side, the corporation participation in production or activities that creates a negative impact on the community, the media will always put more light on this. As a matter of fact, the bad news always spread at a faster speed than a good one. Visibility of the media is only useful for shedding light on the organisation.
• Boosts the engagement of the employees
The companies having good public image are always preferred by the employees. The satisfied employees always give better output than the dissatisfied one. Near about 60% of the employees who are proud of the social responsibility of the company are engaged in their jobs. The companies when show that they are dedicated to the improvement of their community through corporate giving programs, and are more likely to retain and attract valuable, highly engaged and hard-working employees.
If the company is minded with generosity, the individuals who are looking for a job, will more likely to apply for it. Once they are employed, the hired ones will stay with a company longer, and they will be more productive on a daily basis, they will tend to be more creative than disengaged workers.
Some examples of corporate social responsibility
• CSR in BMW
BMW is known as one of the most socially responsible companies because it has the goal of helping more than the one million people by the year 2020. They are planning it by creating corporate social responsibility program so that they can help aware people about social and environmental issues. And they are setting a wonderful example of corporate social responsibility.
• CSR activities in Levi Strauss & Co.
Levi’s is another company that aims at focusing on corporate social responsibility. The approach of Levi is to reduce the environmental footprints, and they are doing it by addressing environmental and human right issues.
It has an approach of “worker well-being initiative” aiming towards the better life of the employees. It has also come up with the initiative of having the trademark “water<less” denoting the less use of water while they manufacture the products.
• SurveyMonkey’s CSR activities
It is the best known for their survey creation software, they have created a program for the improvement of their responsibilities towards society. They have come back with more innovative ideas. They are donating 50 cents to people who have completed surveys, and the complete donation goes to the charity of survey takers of their choice. The total donation of the company is about one million dollars to the charity organisations. The company SurveyMonkey focus on the betterment of the society as a whole and consequently, enhancing the reputation of the company.
Starbucks was commenced in 1971. It has always focused on the social and ethical responsibilities. It has the main aim of creating a product. They set the guidelines for increasing the quality of the product, economic and social responsibility and management of the environment. Starbucks has done a partnership with Ethos Water and is helping to bring clean water to over one billion people having no access to it. The thing that separates Starbucks from others is their focus on the society before themselves. The brands are famous for their factor of giving back to the community.
Thus, these were some of the examples that can better explain corporate social responsibility.