What is Corporate Social Responsibility?
Share on Facebook Running a business in a socially responsible way is a challenging task. The businesses of today have to consider more than just profitability if they are to keep their customers, employees, shareholders and communities happy.
The balancing act of effecting positive social change while exceeding strategic company objectives is one that many companies are still trying to master.
Employees Employee salaries can take up a large percentage of a business' budget. Many companies attempt to keep wages low in order to maximize profits. Socially responsible companies understand that paying employees a fair or above average wage may cost more but has significant advantages in the long run.
SAS Institute, a business analytic software company, has consistently been ranked as one of the best companies to work for in America. SAS provides its employees with subsidized childcare, a free healthcare center, unlimited sick time and many other perks. The investment the company makes in its employees is substantial.
However, businesses like SAS realize that by positively impacting the lives of its employees, the company benefits from higher productivity, good employee morale and fewer labor disruptions.
Supply Chain Businesses that work with multiple suppliers can find it challenging to address socially irresponsible business practices.
Apple came under fire from the media and its customers when news broke of sub-par working conditions at one of its supplier's plants.
Apple insisted it was not aware of the labor conditions and sent a team to the Foxconn plant in China to investigate the allegations. Similarly, Walmart came under intense pressure from its shareholders to disclose and monitor how its international suppliers treat their workers.
Walmart admitted that addressing this issue was a challenge for the company given the many suppliers with which the company does business.
Customers When the product a business offers to customers results in harm, this can be a devastating blow. A New England compounding plant had to be closed after the steroid injections it manufactured were linked to cases of fungal meningitis.
Many companies have had to respond swiftly to crises to prevent similar outcomes when quality controls failed to recognize faulty products.
Businesses must ensure there are stringent checks and balances to identify products that do not meet safety standards. Businesses must also make sure consumer and employee safety are a priority so that goods and services can be provided safely and responsibly.
Sustainability Recycling bottles and cans, reducing paper and energy consumption are all ways that businesses can incorporate sustainable practices in their operations. Old habits are hard to change, and companies have to remain committed to training employees on how to incorporate these practices in their daily activities.
Sustainability practices have to be employed company-wide and then tracked or measured. Businesses can then document their efforts to be environmentally responsible in their annual reports.Being Socially Responsible means that people and organisations must behave ethically and with sensitivity toward social, cultural, economic and environmental issues.
Striving for social responsibility helps individuals, organisations and governments have a positive impact on development, business and society with a positive contribution to bottom . generated by the global economy, intense competition, the changing nature of the workforce, and powerful customers Globalization the integration and interdependence of economic, social, cultural, and ecological facets of life, made possible by rapid advances in information technology.
Name the biggest social issue facing businesses today. Perhaps you said global warming, safe workplace practices, preventing child labor, or protecting vanishing ecosystems. Recent years have witnessed increasing importance on corporate social responsibility, especially as concerns about climate change are becoming mainstream.
There have been criticisms of corporate social responsibility from ardent free trade capitalists and anti globalization activists/environmentalists alike. With this in mind, it created C.A.F.E. Practices, a set of guidelines to achieve product quality, economic accountability, social responsibility and environmental leadership.
The company supports products such as Ethos Water, which brings clean water to the more than 1 billion people who do not have access. Social issues that affect businesses and individuals range from the state of the physical environment, to company and individual philanthropy, to education.
Some corporations and individuals are willing to spend time and/or money to address various social problems.