Developing a Program of Corporate Social Responsibility
Many corporations and businesses donate funds and do good works in their communities. Corporate social responsibility (CSR) takes this effort to the next level. Under a CSR approach, corporate leaders consider how every aspect of the business may affect society in general: what the business produces, how it employs and develops staff, how it purchases supplies and sells its products or services, how it affects the environment, and how it acts in the community. CSR can help the corporation or business succeed, building trust, respect, and loyalty among customers, suppliers, employees, and the community at large.
Some key examples of CSR include dealing honestly with suppliers and fairly with competitors, respecting not just the letter of the law but also the spirit of the law, acting as good citizens and never knowingly jeopardizing the health and well-being of the community, and improving the lives of stakeholders by enabling them to share in the wealth the business creates.
Customers, suppliers, and employees are all more interested than ever before in the way that businesses behave. A good corporate or business reputation can open doors, win loyalty, and create staff enthusiasm. While CSR includes philanthropy, it is more than just giving donations—it's about becoming a good corporate citizen. CSR can raise the corporate profile in a positive way, which can result in real business benefits.
CSR is about having a positive social impact and at the same time supporting business objectives, both of which are important to any business, large or small. For reasons of principle as well as business success, every business should strive to have a positive role in the community.
Businesses can choose to support community initiatives with money, but in most cases CSR is simply about guaranteeing the right behaviors. Often, behaving irresponsibly is cheaper for a business, but in the long run behaving responsibly will enhance your reputation and do more to help you retain customers and staff.
As with every other aspect of your business, you need to review your activities to determine if you are getting a return. With CSR, the return may be hard to measure exactly, but you will be able to see a return in your employees feeling more motivated, lower staff turnover, a better reputation locally, or higher sales because customers appreciate your CSR efforts.
Examine your corporate or business practices systematically in terms of their social and community impact. Consider committing the business to a code of principles that provides a framework for you and your stakeholders to measure your progress on environmental, social, and community issues. You might also consider using some of your marketing budget to associate your business with a social cause.
One important contemporary area of CSR policy and practice, for example, is waste recycling and use of renewable sources of energy and materials. Are there ways your business can do better in these areas? If so, then develop a strategy with specific targets and ensure that all of your stakeholders are aware of your commitment. Importantly, your employees need to be fully informed and engaged in any such effort. They need to know you are serious and they need to be included in the celebration when targets are achieved.
Identify your most important stakeholders and their social and community concerns and how those concerns relate to your business interests. How can your business become more socially responsible in these relationships? How can you let these stakeholders know about your commitment to CSR?
- Customers. Businesses need to provide products and services that deliver the promised quality. You must treat customers fairly and with dignity and never jeopardize their health and safety. Working with customers on community or social projects, called "cause-related marketing," can increase customers' appreciation as well as deliver a social benefit.
- Employees. Every business has an interest in being an employer of choice. This means paying staff fairly, providing a good working environment, communicating openly and honestly, respecting staff suggestions, avoiding discrimination, promoting personal development and continuous learning, and supporting employees' efforts to balance work and personal life.
- Investors. Businesses have a responsibility to manage assets effectively to provide investors with a fair and competitive return, but they are also responsible for protecting investors by obeying the laws and operating in a socially responsible manner.
- Suppliers. Businesses have a responsibility to deal fairly with suppliers, including paying them as agreed. The business-supplier relationship should be free from coercion and should aim to foster stability in return for value, quality, and reliability. Issues of social responsibility and fair labor and business practices apply just as crucially to small business as they do to large corporations.
Think of ways in which you can use your corporate or business capabilities to contribute to community and social good. Ideas include donating equipment you no longer use, encouraging your employees to volunteer with community organizations, and "lending" staff with specialized skills to nonprofits to perform needed services.
The most common mistake regarding CSR as a "nice-to-have" add-on rather than an integral part of your business strategy. CSR is not only a matter of principle—it can also be crucially important to the reputation and ultimate success of your business. CSR should be treated as seriously as any other aspect of business operation.
Jackson, Ira, and Jane Nelson.
Turknett, Robert L., and Carolyn N. Turknett.
Business for Social Responsibility: www.bsr.org
The Center for Corporate Citizenship, Boston College: www.bcccc.net
The Corporate Social Responsibility Initiative, Harvard's Kennedy School of Government: www.ksg.harvard.edu/cbg/CSRI
Global Sullivan Principles of Social Responsibility: www.thesullivanfoundation.org/gsp