Shared Values: What is CSR?

Corporate Social Responsibility (CSR) is an economic model that regulates company policy and behaviours by ensuring that businesses remain accountable to the larger community that they draw their resources from. It is a way to make companies more conscious of the impact they have on the social, economic and cultural environment of the society they’re functioning. In many cases, it’s also a way for companies to offset the negative impact that their activities might have on a variety of stakeholders. By giving back to the public, businesses can help make sure that their practices are responsive to the ethical developments within the political sphere. CSR promotes the active involvement of companies in addressing cultural and social issues. In most cases, companies contribute to the greater public good by contributing some part of their profits towards charitable causes, volunteering efforts and philanthropic activities. CSR can take myriad forms depending on the industry and sector the company operates. The most significant advantage of CSR is that it turns companies into active citizens who aren’t removed from the social structures they serve. It forges a link between business management, employees and the public. It can also help employees feel that the company they’re working for is accountable, responsible and responsive to their concerns. It can even serve as a great benchmark for industry-wide practices. This is why large corporations usually feel the most pressure to respond to public concerns because their decisions can massively influence industry standards. 

While in most cases CSR is merely limited to philanthropy, it can also extend beyond that. Recent changes in public demands have pushed companies to adopt more ethical, sustainable and moral business models and labour policies. This usually means that businesses are pushed to assess whether their supply chains are involved in unfair labour practices or environmentally harmful activities. For example, Starbucks promises 100% ethically sourced coffee, which means that it has actively worked to propagate fair employment conditions for all its workers across the distribution and sourcing system, and streamlined conservation efforts through the soil and habitat preservation measures. Most companies are motivated to participate in CSR-related activities due to the beliefs of their management/founders, compliance with government regulations or bolstering their company image. In a capitalist economy where competition determines profits, most businesses want to retain their customers by catering to their social well-being. By actively giving back to the public, companies can help humanize their operational systems. They can become active citizens who hold moral beliefs and values that guide their actions.