We explain what corporate social responsibility is, its importance, types and examples. Also, how it benefits a company.
What is corporate social responsibility?
Corporate social responsibility (CSR) or corporate social responsibility (CSR) is the obligation that corresponds to every for-profit organization regarding the improvement of the field in which it operates that is, with the economic, social and cultural improvement of the community that surrounds it.
This type of responsibility goes beyond the necessary compliance with laws and regulations, and the ordinary operation of the company, and assigns it an active and voluntary role within the dynamics of supporting local impact initiatives. In other words, It is a community social work that the company carries out to give back to the community a part of the wealth that, thanks to it, the organization can generate on a daily basis.
Thus, a company can support cultural, educational, environmental, sports, community or whatever plans, as long as they lead to improving the quality of life, so that the presence of the company not only benefits its shareholders, but society in general. The larger the size of the company, the greater its contribution is expected to be in improving people's quality of life.
The origin of corporate social responsibility dates back to the 19th century, at a time when large corporations sought to strengthen their ties with democracy and people's standard of living, thus encouraging the idea that the economic progress of the organization It would bring with it a general improvement for the people.
See also: Business ethics
Importance of corporate social responsibility
Corporate social responsibility It is fundamental in the integration between the corporate world and the community that is, to prevent corporations from operating in a way totally disconnected from the needs of their environment, as autonomous units that could be anywhere else.
The purpose of CSR is to promote dialogue between both parties and integrate the company within the social, economic and cultural ecosystem of the city, while translating into particular benefits for organizations.
Types of corporate social responsibility
Corporate social responsibility can be classified according to the specific area of impact it has on the community, into three broad areas:
- Economic impact in the case of initiatives aimed at improving the community's standard of living, promoting local exchange or entrepreneurship dynamics, or financially sponsoring students, athletes or artists.
- environmental impact, in the case of initiatives aimed at caring for or promoting caring for the environment, such as recycling campaigns, environmental cleaning, reforestation or education for responsible consumption. This also applies in an urban sense less linked to conservationism, such as street repair or urban cleaning, in short, in any sense that benefits the population's living environment.
- Social impact in the case of initiatives more linked to community life, that is, with plans to promote culture and sports, educational plans or the promotion of new forms of social ties, through events, forums, fairs, etc.
Benefits for the company
Just as the community is improved by the initiatives developed by CSR, organizations also receive in return some direct or indirect benefits for their operation, such as:
- Loyalty of your clientele. The presence of the company in the community takes on a positive, beneficial vision, which generates greater margins of acceptance of its campaigns in the community, giving it an advantage over the competition. This is known as loyalty: the clientele becomes loyal to the company, choosing it over others, since they feel that they are collaborating with these social initiatives.
- Reduced taxes and operating costs. In reward for its investments in local development, the State usually benefits companies by reducing their tax burden. At the same time, improving the very environment in which the company operates improves the quality of work of its employees.
- Opening of new markets. Many times the economic and social sponsorship initiatives carried out by companies are transformed into new markets or new areas of investment that allow the diversification of corporate interests.
- Flexibility and greater capacity to adapt. The proximity between the company and the environment provides important feedback to the latter, which allows it to design new strategies to reach its clientele, thus expanding its area of influence.
Examples of corporate social responsibility
Some examples of CSR campaigns are the following:
- Starbucks' investment in Central America. The famous coffee chain supports small coffee producers in countries such as Costa Rica, Guatemala, Nicaragua and Honduras, betting on the international growth of the coffee segment in the world, instead of anonymous exploitation of Third World resources. This translates into making producers visible and providing them with better treatment than traditional companies would do.
- Levi's Less Waste Initiative. This American blue jeans company has committed to sustainable development, reducing its waste generation and water consumption as much as possible, as well as using at least 20% recycled materials.
- The Red Bull Academy. The Red Bull company, creator of energy drinks, has carried out a social training program known as Amaphiko Academy, which sponsors local life improvement projects. The idea is that in this way, little by little, a great social impact can be generated.
Continue with: Environmental responsibility
References
- “Corporate social responsibility” on Wikipedia.
- “What is Corporate Social Responsibility in a minute” (video) in Sumarse – Global Compact Panama.
- “What is CSR” in Corporate Social Responsibility Observatory (Spain).
- “Importance of Corporate Social Responsibility” by Leisa Presuttari at Universidad Siglo 21 (Argentina).
