Corporate social responsibility (CSR) concerns both the public and the
business community. The current global financial crisis has ignited public
concerns with corporate social responsibility. It also addresses how corporate
social responsibility should develop and operate in the future in order to
benefit companies, communities, and society as a whole. By considering above
aspects of CSR. I Vaishali D Muke student of LLM (Business corporate law)
trying to elaborate various aspects of CSR in this article.
Corporate social responsibility plays an important role in a firm’s life in the
U.S. today. It is not enough for companies to generate a profit. U.S. citizens
expect them to generate a profit and conduct themselves in an ethical and
socially responsible manner.
The U.S. Sentencing Commission Guidelines help organisations facilitate this
expectation, which is vital for corporate growth and maintaining a competitive
edge. Managers who deal with ethical and social responsibility problems
oftentimes aren’t dealing with optimal solutions. Managers often settle for
solutions that suffice or cause the least harm. Managers charged with choosing
the ethical or socially responsible path often face problems with no clear
key components of CSR:
- The basic values, ethics, policies, and practices of a company’s
- The voluntary contributions made by a company to community development;
- The management of environmental and social issues within the value chain
by the company and its business partners—from the acquisition and production
of raw materials, through the welfare of staff, to product sale, use, and
Corporate Social Responsibility- DefinitionsA good company delivers excellent products and services, and a great company
does all that and strives to make the world a better place.
- William Ford Jr.
Four Types of Corporate Social Responsibility
Philanthropy The largest companies in the world are aligned with philanthropic efforts.
Microsoft works closely with the Bill and Melinda Gates Foundation to bring
technology to communities around the world. The company understands that its
success requires not just continued innovation, but building a next
generation capable of understanding, using and improving technology.
Even small companies benefit from aligning with philanthropic causes. A
local car wash might offer schools a platform to host fundraisers for sports
teams. Restaurants have fundraising nights when proceeds benefit a local
school or charity. Supporting these causes happens to also be good
marketing, because the community is invited into the business, has a good
experience and sees the company in a positive light.
Environment conservation Environmental concerns regularly make the headlines, whether a long-term
problem like global climate change or a more local issue such as a toxic
chemical spill. Companies that align themselves in these efforts help
minimise environmental problems by taking steps such as reducing their
overall carbon footprint. Although major corporations get most of the
attention for their environmental commitments General Mills has committed to
a 28 % reduction in greenhouse gas emissions, for example -there are plenty
of opportunities for small and mid-sized business as well.
Does your business have an active recycling program on site? Have you
considered using alternative energy sources like solar and wind to help
power your operations? There are plenty of green cleaning alternatives
that can help reduce your use of harsh toxic cleaning chemicals. All these
steps can make a small but significant contribution to improving the
environment. You can also ask your suppliers to do the same, letting them
know that their environmental measures will be a factor in your purchasing
decisions. By doing so, your environmental commitments are multiplied along
the supply chain.
Diversity and labour practices Business leaders realise that diversity in the workplace is beneficial when
everyone is getting along and working as a team. However, labour policies
must apply to all employees, even those at the highest levels of the
company. The scandals with Harvey Weinstein and Steve Wynn show that no
company is impervious to the ramifications of sexual harassment. This
movement has also given rise to other diversity issues in the workplace that
need attention and consistent action. As a business leader, review your own
diversity policies and protocol to address any complaints and violations.
This is not only good for your company image, it also helps build a positive
company culture with good morale and high productivity.
Volunteerism Local communities and charities always need help. Smart business leaders
know that being involved in the community in a productive way is good for
the company too. Give employees the opportunity to help a local school plant
trees or work with the city council on addressing homelessness in the area.
Business leaders have the opportunity to choose where to spend volunteer
efforts to best help the local area along with the company. The important
thing for businesses is to choose a cause and contribute time.
Approaches to CSR
There are two basic approaches to CSR: Traditional Approach and Modern Approach
Traditional Approach, Under the traditional/classical operation of the corporate
enterprises, society’s basic demands upon the business were to produce goods and
services efficiently and the responsibility of business enterprises was to use
resources and engage in activities designed to increase profits and size of
The Modern Approach, New social pressures have changed the objectives of
business enterprises. There is growing public demand for corporate involvement
in solving many social practices so that social responsibility becomes a
standard by which business practices are evaluated. It is opined that business
houses should formulate financial goals for the shareholders and social goals
like pollution abatement, minority employment and related corporate activities.
Impacts of CSR:
The corporate social responsibility also has an impact on the internal
environment of any corporate system. It has a direct impact on the decisions of
the company and shows their concerns about the society and sustainability. At
the same time, their attitudes towards the Corporate social responsibility (CSR)
in United States of America effect the talent attraction, directly.
The more a company is concerned about its role in the society and the global
system, the more it will be able to find good and innovative talent to its
platform. According to recent studies, it has been found that the young talent
is more inclined to work for the organisation that is environment-friendly and
work more for social causes, sustainability, and philanthropy. Overall the
sustainability and CSR programs are on the rise among American companies. The
revolutions are already there are the researchers suggest that the corporate
entities must implement the CSR and sustainability programs to gain a long-term