Corporate social responsibility (CSR) refers to a kind of business that includes processes and programs that benefit society, and the planet.
It is being practiced by most businesses today that helps create merit for business and society.
CSR operations are accountable in relation to not only the community but also the environment in which it operates.
Going sustainable today is more than just setting up a recycling program or using e-statements. While many businesses are familiar with the old concept of social responsibility, wherein companies, voluntarily, reached out to assist their customers and communities, the definition now has been greatly expanded. Possibly due to the growing environmental issues facing our communities and planet, a new concept is being applied and Socially Responsible Companies articulate this relationship:
Corporate Social Responsibility (CSR) is a concept that organisations and most companies have an obligation to consider the interests of customers, members, employees, shareholders, communities, and ecological considerations in all aspects of their operations. Just like the old definition of social responsibility, this obligation is seen to extend beyond their statutory obligation to comply with legislation.
Some of the important factors of corporate social responsibility for business value include:
Environment:
One crucial centre 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. This concept applies to all businesses in all industries. Some steps must be considered and taken to alleviate the impact of the company's activities on the environment. While a factory belching smoke has obvious environmental impacts, other industries' impacts may not be as apparent.
Consider the nice clean building. How much energy is it using? How much paper? Ink? Water? All of these factors, and many more, while unseen, have a deleterious impact on the environment. How? Let's just consider water for now. For every gallon used, the water must be cleaned, processed, and re-purified.
This is an energy-intensive procedure and requires the substantial use of electricity, most of which is produced today from fossil fuels. Processing paper from wood pulp typically requires enormous amounts of water usage, not to mention the trees destroyed and chemical emissions released into our atmosphere and sometimes, waterways. And it's not just the factories using water. Think of it this way: each time you flush the toilet, you are indirectly releasing additional CO2 into the atmosphere, speeding global warming.
Philanthropy:
This can include giving money or time and the resources can benefit local charities and community programs.
Ethical labor practices:
Most importantly, your CSR policy should consider not only the local effects of your business activities but also the far-reaching effects.
Fair and ethical treatment of employees will strongly demonstrate a good CSR policy.
Businesses operating internationally must understand different labor laws that need to be addressed to enhance their business CSR policies. Besides the rewards of "doing the right thing", there are monetary rewards for CSR: recent surveys indicate a growing number of your prospects and customers now consider a company's environmental policies before doing business.
Companies that truly Sustainable business enhance their marketability, improve their employee relations, and reduce their energy costs. As they used to say, it's a win-win-win for everyone.
Corporate Social Responsibility decreases waste and pollution processes, provides educational and social programs, and produces adequate returns on employee resources. Therefore, it is important to adopt CSR to increase your business value. Tiger Global is one of the best Socially responsible companies that help multiple companies to improve their business value.
