What is CSR?
Corporate social responsibility (CSR) is a Self -regulation business model This helps a company to be socially responsible for itself, its stakeholders and the public.
By practicing corporate social responsibility, also called corporateCompanies know how they have an impact on the aspects of society, especially economic, social and environmental. Getting involved in CSR means that a business operates Improve society and the environment Instead of contributing to them negatively.
Main to remember
- Social responsibility for companies is a business model by which companies make a concerted effort to make a way to improve rather than degrade society and the environment.
- CSR can help improve society and promote a positive brand image for businesses.
- CSR includes four categories: environmental impacts, ethical responsibility, philanthropic efforts and financial responsibilities.
Investopedia / Zoe Hansen
Understand corporate social responsibility (CSR)
Through Corporate social responsibility programsPhilanthropy and volunteer efforts, companies can benefit the company while increasing their brands. A socially responsible The company is responsible for itself and its shareholders. CSR is generally a strategy used by large companies. The more visible and successful a business, the more it has the responsibility to set standards of ethical behavior for its peers, its competition and industry.
Fast
Small and medium -sized enterprises also create social responsibility programs, although their initiatives are rarely alleged as well as those of large companies.
CSR types
- Environmental responsibility: Social responsibility for businesses is rooted in the preservation of the environment. A company can continue to manage the environment by reducing pollution and emissions in manufacturing, recycling of materials, reconstruction of natural resources such as trees or the creation of ranges of products compatible with CSR.
- Ethical responsibility: The company's social responsibility includes agitation fairly and ethical. Ethical liability cases include fair treatment of all customers Regardless of age, race, culture or sexual orientation, wages and favorable benefits for employees, supplier Use in demography, complete disclosure and transparency for investors.
- Philanthropic responsibility: CSR requires that a company contributes to the company, if a company gives profits to charities, is entering transactions It is only with suppliers or suppliers who line up with the philanthropically company, supports the philanthropic efforts of the employees or sponsor funds for collecting funds.
- Financial responsibility: A company can make plans to be more ecological, ethically and philanthropically, however, it must support these plans thanks to financial investments in programs, donations or research on products, in particular Research and development For products that encourage sustainability, the creation of a diversified workforce or the implementation of DEI, social conscience or environmental initiatives.
Volunteer
Certain models of corporate social responsibility replace financial responsibility with a feeling of volunteering. Otherwise, most models always include the environment, ethics and philanthropic as types of CSR.
Benefits of CSR
According to a study published in the Journal of Consumer Psychology, consumers are more likely to act favorably towards a company that has played for the benefit of its customers. As a business to get involved in CSR, it is more likely to receive a favorable brand recognition. In addition, workers are more likely to stay in a business in which they believe. This reduces the turnover of employees, disgruntled workers and Total cost of a new employee.
For companies that seek to surpass the market, the promulgation of CSR strategies can improve the way investors see the value of the business. The Boston Consulting Group found that companies considered managers in environmental, social or governance matters had 11% assessment Premium compared to their competitors.
CSR practices help companies mitigate risks by avoiding disturbing situations. This includes the prevention of unfavorable activities such as discrimination against groups of employees, contempt for natural resources, use contrary to the ethics of business funds and activity that leads to prosecution, and dispute.
Important
CSR programs can increase morale in the workplace.
Corporate examples
In its environmental report and the impact of the environment in 2022, Starbucks (Sbux) Underlines the means to take care of its workforce and the planet among its CSR priorities through grants of action and medical services, family and education. The company's objectives include the reduction of 50% of greenhouse gas emissions, water consumption and waste by 2030.
Home Depot (Hd) Invested more than one million hours a year in training to help employees on the front line advance in their careers, aims to produce or obtain 100% renewable energies to operate its facilities by 2030 and plans to spend $ 5 billion per year with various suppliers by 2025.
General Motors won the Award for Sustainable Leadership of the Business Intelligence Group in 2022. The automaker has assured 60 million dollars in subsidies with more than 400 American non -profit organizations focusing on social issues, and it has agreements in place to use 100% renewable electricity on its American sites by 2025.
Why should a company implement CSR strategies?
Many companies consider CSR as an integral part of their brand image, believing that customers will be more likely to do business with the brands they perceive as more ethical. In this sense, CSR activities can be an important component of corporate public relations. At the same time, some founders of the company are also motivated to engage in CSR because of their convictions.
What is ISO 26000?
In 2010, the International Organization for Standardization (ISO) has published ISO 26000, a set of voluntary standards to help companies implement corporate social responsibility. Unlike other ISO standards, ISO 26000 provides advice rather than requirements because the nature of CSR is more qualitative than quantitative, and its standards cannot be certified. ISO 26000 clarifies social responsibility and helps organizations to translate CSR principles into practical actions.
What are the advantages of CSR?
CSR initiatives strive to have a positive impact on the world thanks to direct advantages for society, nature and the community in which a commercial operation. In addition, a company can benefit from internal advantages through initiatives. Knowing that their business promotes good causes, employee satisfaction can increase and staff retention can be reinforced. In addition, members of the company may be more likely to choose to transform with companies that try to make a more conscious positive impact beyond the scope of its activities.
What companies have the best CSR?
Since 1999, Corporate Responsibility magazine has classified the 100 best corporate citizens among the 1,000 largest American public companies each year. The rankings are based on employee relations, environmental impact, human rights, governance and financial decisions. In 2025, the best classified companies included Hewlett-Packard Enterprise Company, Accenture and Hasbro.
The bottom line
Companies striving Measure success beyond financial results Can adopt CSR strategies that target environmental, ethical, philanthropic and budgetary responsibility that extends beyond the products they sell.