What Is Corporate Social Responsibility (CSR)?

Corporate Social Responsibility (CSR) Is A Self-Regulating Business Model That Helps A Company Be Socially Accountable To Itself, Its Stakeholders, And The Public. By Practicing Corporate Social Responsibility, Also Called Corporate Citizenship, Companies Can Be Conscious Of The Kind Of Impact They Are Having On All Aspects Of Society, Including Economic, Social, And Environmental (FERNANDO, 2023).

Examples of Corporate Social Responsibility

Environmental Management ( Ex Waste Reduction And Sustainability)

Responsible Sourcing, (Ex Using Only Fair Trade Ingredients)

Improvement Of Working Standards And Conditions

Contributing To Educational And Social Programmes

Employee Volunteering

Socially Responsible Investment

Development Of Employee And Community Relations

Importance Of Corporate Social Responsibility

CSR May Enhance Your Company's Performance, Provide You A Competitive Edge, And Cultivate Consumer And Employee Trust. By Minimizing Expenses Associated With Wasted Energy Or Superfluous Fees, It Can Also Assist You In Achieving Operational Cost Reductions.

Perhaps Most Crucially, CSR Helps To Establish Your Firm And Brand As A Respectable, Ethical Corporation. Learn More About The Advantages Of Corporate Social Responsibility For Businesses.

Benefits of Corporate Social Investment For Businesses

Better Brand Recognition

Positive Business Reputation

Increased Sales And Customer Loyalty

Operational Costs Savings

Better Financial Performance

Greater Ability To Attract Talent And Retain Staff

Organizational Growth

Easier Access To Capital

Four Main Types of Corporate Social Responsibility

1. Environmental Social Responsibility

2. Ethical/Human Rights Social Responsibility

3. Philanthropic Corporate Responsibility

4. Economic Corporate Responsibility

1. Environmental Corporate Responsibility

The Phrase "Environmental Responsibility" Refers To A Company's Dedication To Environmental Protection And Sustainability. Every Year, More Businesses Prioritize Sustainable Practices And Commit To Taking The Environment Into Account At Every Level Of Operations. This Might Entail Lowering The Company's Carbon Footprint Or Greenhouse Gas Emissions, Choosing Sustainable Resources By Staying Away From Single-Use Plastics, And Keeping Environmental Concerns At The Forefront Of All Business Processes.

However, This Need To Protect The Environment May Go Beyond The Company's Commitment To Sustainable Growth. If Your Company Has A Goal That Includes Saving The Environment, You May Uphold That Objective By Inspiring Workers To Act.

2. Ethical/Human Rights Social Responsibility

A Company's Commitment To Conducting Business In An Ethical Way That Supports Human Rights Values, Such As The Equitable Treatment Of All Stakeholders, Fair Trade Practices, And Equal Compensation, Is Referred To As Having An Ethical Duty. Many Corporations Will Speak Out Against Human Rights Violations Such Child Labor, Racial Or Gender Discrimination, And The Struggle For A Higher Minimum Wage In Order To Promote Ethical Responsibility. Similar To Environmental Responsibility, Promoting Ethics At Your Business May Be Done Through Including The Staff In The Initiative.

3. Philanthropic Corporate Responsibility

Philanthropic Responsibility Refers To A Corporation’s Aims, Goals and Objectives for Actively Bettering Society as a Whole. One Huge Aspect Of Corporate Philanthropy Is Donating Money From Company Earnings To Worthy Causes Within The Local Community — Often In The Form Of A Trust Or Foundation.

4. Economic Corporate Responsibility

Economic Responsibility Refers To The Practice Of Making Financial Decisions Based On A Commitment To Doing Good. Some Common Examples Of Economic Responsibility Include Investing In Alternative Energy Sources, Putting More Money Into Education Programs And Funding Local Charities As A Way Of Bolstering Their Mission.

To Uphold Economic Responsibility, Business Leaders Are Challenged To Think Past Operational Cost Savings And Instead Put Their Obligation To Corporate Citizenship At The Heart Of All Financial Decisions.

Example of CSR in John Keells Company

John Keells Group believes in demonstrating our commitment to all our stakeholders including the communities and environment in which our businesses operate. A minimum of 1% of our annual profit is allocated to social responsibility initiatives in keeping with our CSR Vision of 'Empowering the Nation for Tomorrow.'