Corporate Social Responsibility (CSR)

In today’s business world, companies are expected to take responsibility for the impact of their actions on society and the environment. Corporate social responsibility (CSR), is more than a business practice. It’s a demand driven by consumers. What is corporate social responsibility?

CSR is the business model and level of responsibility that companies must have to make a positive difference in the world. CSR is a way for companies to be accountable to their staff, stakeholders, the public, and the local and global environment.

CSR is more than just helping the environment and society. It also helps a company’s reputation. People are increasingly socially conscious and will choose to support businesses that focus on social responsibility. CSR practices can also boost employee morale, as both employers and employees feel more purposeful in their work.

Anyone who wants to work in business must be able to understand how to implement a CSR program.

CORPORATE SOCIAL RESPONSIBILITY IN ACTION

Businesses are now judged on how they treat employees and customers, and their impact on social problems. As decision-makers seek to make a positive difference, they incorporate issues such as diversity, equality and climate change into their business strategies and brand identities.

Corporate social responsibility has become increasingly important over the past few years as consumers realise that businesses can have a significant impact on the environment, and other social issues affecting them. A brand’s success depends on its corporate social responsibility. This is especially true in a world where people can voice their disapproval via social media and peer to peer platforms.

Criteria for environmental social and governance

Investors and business managers use the ESG criteria to evaluate corporate behavior. After evaluating a company’s operation and how it relates to these criteria, socially conscious investors will decide whether to invest. Companies that prioritize values such as empathy, inclusion, and conservation are preferred by employees and consumers.

The environmental criteria are how a company tries to reduce its ecological footprint while not causing harm to the environment. Social criteria refer to how a company treats its customers, employees, suppliers, and the community in a fair, inclusive manner. Governance is how a company handles its leadership, pay and audits, as well as shareholder rights.

Diversity and Inclusion

Diversity and inclusion (D&I) refers to programs and policies that promote greater representation of diverse groups. These can include people from diverse cultural backgrounds, religions and ages. Diverse work experiences, thinking styles and personality types can all be part of diversity. D&I is a growing priority that can bring multiple benefits to an organisation’s business strategy.

Packaging and supply chain that is ethical

Businesses are expected to look for ways to improve their supply chain and packaging to ensure that they produce ethical and sustainable products. The supply chain of a corporation has an impact on suppliers, logistics providers, and ultimately the end user, the customer.

Branding that is purpose-driven

A purpose-driven brand is more than just a product or service. It can also create empathy and an emotional connection with customers. If a business chooses to highlight its purpose in its brand identity, it can not only make an impact in the world but also affect purchasing behavior.

CARROLL’S PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY

CSR was first introduced by Howard Bowen an American economist. He created the term in his 1953 book, ‘Social Responsibilities for the Businessman’. He stated that “CSR is the obligation of businesses to follow policies that are desirable in terms of the values and objectives of our society”.

Archie Carroll organised the expected corporate social responsibility into a four-level structure called the “pyramid of corporate Social Responsibilities”. This framework is commonly divided into four categories: legal, moral, and philanthropic.

HOW TO CREATE A CSR STRATEGY THAT IS SUCCESSFUL

Let’s get into the details. We have already discussed what a Corporate Social Responsibility strategy is. Here are the steps to make sure your strategy runs smoothly.

1. Define the concept

CSR, especially today, can mean many things to different people. It all depends on the culture of the individual and their past experiences with CSR.

It is important to listen to all stakeholders at this stage. This includes employees, consumers and leaders, as well as local communities and environmental groups. Once you have a better understanding of the concerns, you can begin to identify areas where you can improve your CSR program.

Make sure everyone understands what CSR is for your business and that they are all on the same page. Once everyone is clear about CSR, you can begin to discuss it without prejudice or misinterpretations.

2. Define & Understand the Social Benefits

Before you can begin your CSR strategy, you must get approval from the appropriate stakeholders. It is important to research the benefits and examples of businesses that have benefited from a CSR program.

Once you have a clear idea of the benefits CSR can bring, it will be easier to guide your business case (spoiler alert: step three) to one that is more tailored for your business.

3. Create Organisational Buy-in

Although you may not have expected it, launching a CSR program requires a certain amount budget and human resource from your company. While tools are certainly possible to optimise CSR experience you will still need to have people power until that point.

Make a business case to implement a CSR strategy. Be sure to include all the benefits that a unique CSR initiative could bring your company.

The business case does not have to mention the initiative or the people involved in it. The case should be more comprehensive and include information about CSR for your company, as well as the resources needed to start the project.

4. Establish project goals

Setting goals is the next step in implementing and launching your CSR plan. This will show that your CSR plan is on the right track and that your strategy has a positive impact on your business.

You can do anything in the beginning, such as gaining board buy-in, having 100% of employees understand CSR, hosting 3-5 meetings with potential CSR SaaS suppliers etc.

You can also be more KPI-oriented, such as employee engagement rates, online brand reputation, and lower customer churn.

These goals all aim to make progress towards launching tour CRS initiative.

5. Analyse current CSR

An analysis of current CSR initiatives includes a complete review of all currently running CSR initiatives within your company, whether they are official or not.

Maybe employees have created their own socially responsible initiative. This could be expanded with additional support from the company. You could have fundraisers such as bake sales, community running group, volunteering days, and in-office recycling.

Perhaps there are small acts that encourage a larger initiative. You could think of employee of the Month awards, team brunches or budding office plant life.

If your CSR initiatives have been running for some time but aren’t taking off, you might want to look at the communication tools and methods you use to support them. You might be able to make some operational changes that will help the cause run more smoothly.

Find new solutions to the problem and identify the problems. Take stock of all your CSR areas and take note of what you have. These pieces can be combined to create your strategy. It should connect to the interests of your employees and the overall business strategy, which includes long-term goals

6. Assess CSR initiatives which fit your organisation

Now that you know the benefits CSR can bring your company, and have gained company buy-in. It’s time for you to start looking for digital CSR tools.

This stage involves researching any social or environmental initiatives that you believe will be a good fit with your company’s vision, mission, and values.

Research into corporate social responsibility also involves looking at other companies in the industry. What are the strategies of other companies to align CSR with their corporate purpose? This could spark some amazing ideas and possible collaborations.

This step also includes any tools that you might need to support your CSR efforts. Look at technology that empowers employees to take initiative and communicate with others to stay on top.

7. Start your CSR initiative

After you have done the above, your CSR initative should be ready for you to launch. It is possibly the most important component of your CSR plan.

It’s your one chance to launch it as well as possible. It is important to communicate your CSR launch clearly to all stakeholders, including:

• Employers
• Investors and shareholders
• External stakeholders, partners, and local communities
• Press
• Customers
• Followers and fans

To ensure that your initiative has maximum impact, make sure each group has a clear communication plan. Your employees must be able to explain the details of your initiative to your followers and fans.

7. Start your CSR initiative

Maintaining your CSR campaign/s should be high on your priority list. Ask yourself, what are our KPIs and goals? 

You should consider your Corporate Social Responsibility mission. But also think about the smaller KPIs, data points and metrics that will help you get there.

It is also a good idea collect qualitative feedback along with quantitative feedback. Ask your employees what their feelings are about your CSR programs. How can you make your CSR initiatives more engaging?

Key Learning Points:

• Your corporate social responsibility strategy must have a purpose. The purpose and vision of the strategy should be aligned from the beginning. This will guide you in every step of its creation.
• To be successful in CSR, you need top talent. To help you develop this strategy, gather an internal team made up of people from different departments. Socially responsible businesses start with socially responsible workers.
• CSR programs must be successful if you want to get it. Your employees can provide this feedback. Ask your employees to tell you what they want from CSR programs. Also, ask them about the environmental or social challenges that they are passionate about.
• Now is the time to look towards socially responsible businesses for direction. Every great CSR leader had to start somewhere. Take a look at similar businesses that have successful CSR programs and compare your corporate strategy to them.
• The launch of a strategic corporate social responsibility initiative must be done in stages. Start with a soft launch. This is a way to get market feedback and allows your team to adjust your strategy.
• Start your campaign with a great campaign. It’s time for you to join the ranks of socially responsible businesses that are already leading the charge. You can gain a competitive edge against other brands by following our best practices and your CSR strategy will give you a strong foundation for financial success.