Corporate Social Responsibility

 



Corporate social responsibility (CSR) is a term used that reflects how a business interacts with the world in a positive way which impacts people and society. The four types of CSR are:
  • Environmental - Ex: Reduce carbon footprint 
  • Ethical - Ex: How employees are treated
  • Philanthropic - Ex: Donations (money, products, services) to non-profits
  • Volunteering - Ex: Participating in community causes

Companies using best practices will increase their profit through: 
  • Increased revenue 
  • Reduced energy
  • Reduced waste
  • Reduced materials
  • Increased productivity
  • Reduced turn-over
  • Reduced risk Ex: Additional revenue and fewer expenses
Sustainablitlity based on a "Triple Bottom Line":
  • Economic (Profit)
  • Social (People)
  • Envirionmental (Planet)

WHY CSR?
In recent years, the internet has made the world small. It is practically impossible to be ignorant of the tragedies going on throughout the world. I believe the internet has brought awareness to the social issues in the world. This awareness taps on people's hearts and illicits compassion. It is not enough to sell a good product anymore. More than ever, consumer's insist on corporate social responsibility. Successful companies understand CSR.

TOMS
I was surprised at Cheryl Davenport article The Broken "Buy-One, Give-One" Model: 3 Ways to Save Tom Shoes. I had not considered the impact of Toms model on the people and countries who were given shoes. The article made reference to an article in Time which stated, "...charitable gifts from abroad can distort developing markets and undremine local businesses by creating an entirely unsustainable aid-based economy." Countries need social problems solved (lack of food, shelter, medicine,...) and not free products that are based on creating good feelings in consumers. I have participated in building three houses in Mexico with Builders Without Borders (BWB).  There was also a learning curve for BWB. It was only after recipiants of new houses were kicked out by the owners of the land that BWB realized that it was vital for a person to own the land the house was to be built on. BWB was looking for people in dire need but made the problem worse for them as they became homeless when the owners of the land took the house and moved in. 

Sources:
https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html

https://www2.deloitte.com/us/en/pages/operations/articles/driving-corporate-growth-through-social-impact.html

https://byui.instructure.com/courses/189244/pages/w08-study-csr?module_item_id=24152844

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