Corporate Social Responsibility (CSR) refers to the activities that businesses do to contribute to a strong and sustainable society. This can include contributing to local communities, protecting the environment, supporting disadvantaged groups, and promoting equality. Businesses are increasingly taking CSR more seriously, because customers around the world are demanding it. During last year’s Black Lives Matter protests, for example, hundreds of companies came out in public support of the movement.
What Is Corporate Social Responsibility?
Corporate Social Responsibility is the idea that businesses should embrace the responsibility to contribute to society, not just with their products and services, but also through their policies and actions.
In recent years, CSR has become increasingly popular. It’s not just that businesses want to do the right thing, but that they also want to avoid bad publicity and regulation. Achieving success as a business really involves two main factors:
- Providing a great product or service
- Creating and maintaining a healthy business environment
Many businesses have found that they can do both by actively contributing to society – so it’s a win-win.
How is Corporate Social Responsibility Different from Philanthropy?
It’s important to note that the terms Corporate Social Responsibility and philanthropy are often used interchangeably. And there is a lot of overlap between the two. But there is a crucial difference. Philanthropy is largely about donating to good causes. CSR, on the other hand, is about bringing about change and creating a better world.
Corporate Social Responsibility in Practice
Here are some recent examples of CSR in practice.
1. Businesses Show Support for Black Lives Matter
Last year, hundreds of companies came out in public support of the Black Lives Matter movement. The movement was started in response to high-profile cases of police brutality against Black people, and many businesses saw this as an opportunity to demonstrate social responsibility by showing public support. Some companies have supported the movement financially too.
2. Companies Help Refugees
More and more companies are helping refugees, whether by providing jobs, donating money, or other resources. This is particularly common in the UK.
3. Promoting Gender Equality
Increasingly, companies are promoting gender equality more visibly. Whether this is mandating female representation on boards, or creating recruitment initiatives for female workers, companies are beginning to see the importance of fair and equal representation at all levels.
The importance of CSR
CSR is especially important because in our modern world, companies wield enormous power. In the United States, they may even wield more power than our Government (or at least they can be more capable of funding big social changes without so many bureaucratic and legal hurdles). Whether you like capitalism as a structure or not, the fact remains that corporations are powerful, and a corporation promoting a socially responsible cause can be a very powerful thing.
The fact is, as an individual, you do not have the same amount of power. Let me give you an example. Last year, I started a business with my girlfriend. Our idea was to design a new line of cosmetics specifically tailored to Black women. I managed to actually get some samples made, and they were quite good (according to her and her friends). We did all of our marketing online – we paid YouTube promoters to talk about the inequity of the market for cosmetics and the way they’re advertised, and to wear and talk about our products. We used an SEO company to make sure our website could be found easily, so people could buy from us. We even made a few memes that went viral on a small scale. But in the end, we had to close the company down. People just did not care enough about our mission to buy what we were offering. I learnt a valuable lesson here: the best way to get an industry to change is to motivate the big players to do it, because you can’t take them on yourself.
This is why CSR is so important. It’s the reason why companies will change their policies and products, and it’s why they’ll market them differently. It’s why they’ll support social movements and donate to good causes. It’s why big brands like Coca-Cola, Nike, and Apple have all made pledges to source their cotton from sustainable sources.
The power of CSR
We’re heavily influenced by what’s around us. Our friends and the media tell us what to think, and big companies are one of the biggest influencers in our culture. If a company is promoting a social cause, we’re more likely to at least consider it. This is why it’s important for you to choose companies with good CSR policies when you’re making decisions about which ones to support financially.
If you’re a consumer, you can play a large part in improving the world around you. But it’s important to do your research. There are lots of websites that list companies that have good CSR policies. Make sure you choose the ones that vibe with your conscience.
CSR or Marketing?
It’s important to remember that CSR is not just about marketing. It’s about building relationships with your customers, about creating a better world. It’s about showing people that you care. And it’s about doing the right thing, not just appearing to.
And it’s always important to remember that big companies are not always good, and likewise, not always bad. It’s important to look at what a company is selling, and how it’s selling it. Just because a company “does CSR” doesn’t mean that company is good, or has good intentions. On the other hand, there are companies that don’t actively call their work CSR that are making huge progress on social issues. When assessing companies and their motivations, use your judgement and don’t believe everything you read.
In conclusion, it’s important to remember that CSR is a complex topic. It’s about making positive change in the world. If more companies embrace CSR, then our world will undoubtedly become a better place. And that’s something I think we can all get behind.