Corporate Social Responsibility (CSR) is an effort by companies to create a positive impact on society. It is an organization’s responsibility to contribute to society’s betterment. It can be done through charity, voluntary initiatives, or any other way the company adopts. The goal of CSR should be to make society a better place. CSR also benefits you in your business, but the objective should be to keep society on priority and not the business profit. A few examples of big companies that are engaged in CSR are Lego, Microsoft, Adidas, and Starbucks.
The ‘triple line bottom’ is a concept on which most businesses started acting on. It means that the focus is not only on the monetary benefits, but it aims towards the 3P’s, i.e., “People, Planet, and Profits.” There are four categories of Corporate Social Responsibility.
• Environmental Responsibility
Companies are committing to their environmental responsibilities and building themselves environment-friendly. Reducing carbon emissions, recycling waste, and using alternative energy are a few ways companies can fulfill their responsibility toward the environment. Planting trees can also be a great way to give effort for this cause.
• Economic Responsibility
Economic responsibility ensures that the company has set principles of moral policy. It means that the company’s end goal is not just to make more money but also to keep other aspects in mind. When a company compensates each and every employee with a fair and equal salary, it falls under economic responsibility.
• Philanthropic Responsibility
By Philanthropic Responsibility, in this the company will be giving back to the society from its share. Charity or dedicating a portion of the earnings to a particular cause, companies help society on an international or national level. This portion can be according to the company’s revenue and size. These donations are for noble causes like Humanitarian rights, disaster aid, and educational programs.
• Ethical Responsibility
Ethical responsibility refers to the fair and unbiased operation of an organization. An organization’s ethical responsibility is to treat every employee equally without any race of color or discrimination based on gender. By ensuring a minimum wage, a healthy work environment, and ethically sourced materials, companies fulfill their requirements of ethical responsibility.
Businesses in today’s time become highly competitive, and to make your business unique and stand apart from the crowd, CSR is a highly efficient way. It can make your brand visible to customers and investors.
Image Credit-1st Formations