By David G Komatz
Corporate social responsibility (CSR) refers to a business custom that involves partaking in programs that benefit society. CSR is being practiced by more businesses that have concern for the prolonging of their business functions that helps create merit for business and society.
Sustainability is equally important for people and the planet, as well as for business success. Communities are wrestling with problems that are international in scope and structurally complex. Ebola, persistent poverty, economic unrest and other factors are being realized as problems by people everywhere. The business validation for corporate social responsibility is apparent and clearly identifiable.
CSR is a perception of accountability in relation to not only the community but also the environment in which it operates. Companies articulate this relationship (1) a decrease in waste and pollution processes, (2) by providing educational and social programs and (3) by producing adequate returns on employee resources.” CSR also expands to include stakeholders, philanthropy and volunteering.
CSR encompasses a broad variety of strategies including donations to nonprofits from every sale to giving away product or services to admirable recipients based on sales made. Some of the expansive categories of social responsibility include:
Environment: One crucial center of attention of corporate social responsibility is the environment. Businesses, both large and small, have a large carbon imprint. Any action they can take to diminish the imprint is considered both good for the company and society as a whole.
Philanthropy: Another important aspect of good CSR is donating to charities. This can include giving money or time and the resources can benefit local charities and community programs.
Ethical labor practices: Fair and ethical treatment of employees will strongly demonstrate a good CSR policy. Businesses operating internationally will realize different labor laws that need to be addressed to enhance their CSR policies.
Stakeholder Management Stakeholder responsibility necessitates that companies be loyal to a stakeholder approach to management. Stakeholders are the individuals or groups that have a concern in the organization and are affected by its actions. Customers, employees, suppliers, the board of directors, owners and shareholders are considered primary stakeholders and have a vested interest in how the business performs. Secondary stakeholders such as government agencies, trade unions, labor unions, political groups, social groups and the media can influence the business either positively or negatively.
Employees and CSR. Research has shown that when companies demonstrate their social and environmental responsibility, employees are more satisfied with the company. Employees are generally more likely to be positive, have greater engagement in their work and are more productive.
Communicate with employees about CSR efforts. The business should share its progress, successes and challenges in its CSR policy. Companies should provide all employees with the information they need to do their jobs properly.
Employees should be directly involved in CSR. Direct participation by employees in setting CSR goals become more meaningful. They may also have information about the community and how the company’s CSR can impact the local population.
Celebrate successes with employees along the way. Accomplishments made during the implementation and continuing operation of CSR should be made known to all stakeholders. Whether the progress is large or small, positive or negative, all stakeholders should be made aware and the company should encourage input from stakeholders to make suggested changes or improvements in the overall policy.
Does your company have a CSR policy and what are its results? Does everyone in your company know about the policy and how it is implemented? Are employees encouraged to become involved in CSR?
Crossroads Accounting Inc. is a CSR consulting company and can help you build a sustainable CSR policy and help implement it. Contact us NOW: email@example.com