Corporate Social Responsibility (CSR) Definition: We explain what corporate social responsibility is, its importance, types, and examples. We also explain how it benefits a company. Please read other MTV articles for more information. If you share it, it will be of little help to us.
What is corporate social responsibility?
Corporate social responsibility (CSR) is the obligation of every for-profit organization to improve the environment in which it operates, that is, to improve the economic, social, and cultural well-being of the surrounding community.
This type of responsibility goes beyond the necessary compliance with laws and regulations, and the ordinary operations of the company, and assigns it an active and voluntary role in supporting local impact initiatives. In other words, it is a community social service that the company carries out to give back to the community a portion of the wealth that, thanks to it, the organization is able to generate daily. Must Read About Economic Crisis Once.
Thus, a company can support cultural, educational, environmental, sports, community, or other programs, as long as they lead to improving the quality of life, so that the company’s presence benefits not only its shareholders but society as a whole. The larger the company’s size, the greater its expected contribution to improving people’s quality of life.
The origins of corporate social responsibility date back to the 19th century, at a time when large corporations sought to strengthen their ties with democracy and people’s living standards, thus fostering the idea that the organization’s economic progress would bring about widespread improvements for the public.
Importance of Corporate Social Responsibility
Corporate social responsibility is fundamental to the integration between the corporate world and the community. That is, to prevent corporations from operating in a manner completely disconnected from the needs of their environment, as autonomous units that could be located anywhere else.
The purpose of CSR is to foster dialogue between both parties and integrate the company into the city’s social, economic, and cultural ecosystem, while also resulting in specific benefits for the organizations. Must Read About Solar System Once.
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 by fostering dynamics of exchange or local entrepreneurship, or by financially sponsoring students, athletes, or artists.
- Environmental impact, in the case of initiatives aimed at caring for or promoting environmental care, such as recycling campaigns, environmental cleanup, reforestation, or education for responsible consumption. This also applies in an urban context less closely linked to conservation, such as street repairs or urban cleanup, in short, in any context that benefits the population’s living environment.
- Social impact, in the case of initiatives more closely linked to community life, that is, with plans to promote culture and sports, educational plans, or the promotion of new forms of social connection through events, forums, fairs, etc.
Benefits for the Company
Just as the community is improved by CSR initiatives, organizations also receive some direct or indirect benefits for their operations, such as:
- Customer loyalty. The company’s presence in the community acquires a positive, beneficial image, which generates greater acceptance of its campaigns in the community, giving it an advantage over the competition. This is known as loyalty: customers become loyal to the company, choosing it over others, as they feel it is contributing to these social initiatives.
- Reduction in taxes and operating costs. In return for their investments in local development, the State often benefits companies by reducing their tax burden. At the same time, the improvement of the environment in which the company operates improves the quality of work of its employees.
- Opening of new markets. Often, the economic and social sponsorship initiatives carried out by companies are transformed into new markets or new areas of investment that allow for the diversification of corporate interests.
- Flexibility and greater adaptability. The proximity between the company and its environment provides important feedback to the company, allowing it to design new strategies to reach its customers, thus expanding its area of influence.
Examples of Corporate Social Responsibility
Some examples of CSR campaigns are:
- Starbucks’ investment in Central America. The famous coffee chain supports small coffee producers in countries such as Costa Rica, Guatemala, Nicaragua, and Honduras, investing in the international growth of the coffee sector around the world, instead of anonymously exploiting the resources of the Third World. This translates into making producers visible and providing them with better treatment than traditional companies would.
- Levi’s Less Waste initiative. This American blue jeans company is 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. Red Bull, the creator of energy drinks, has launched a social training program known as Amaphiko Academy, which sponsors local life-improving projects. The idea is that, little by little, a major social impact can be generated.
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References
All the information we offer is supported by authoritative and up-to-date bibliographic sources, ensuring reliable content in line with our editorial principles.
- “Corporate Social Responsibility” on Wikipedia. es.wikipedia.org/wiki/Responsabilidad_social_corporativa
- “What is Corporate Social Responsibility in a minute” (video) on Sumarse – Global Compact Panama.
- “What is CSR” on the Observatory of Corporate Social Responsibility (Spain). observatoriorsc.org/la-rsc-que-es
- “Importance of Corporate Social Responsibility” by Leisa Presuttari at Universidad Siglo 21 (Argentina).
