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A few years ago, Hyundai Motor Company, one of the world’s leading automotive manufacturers, used the picture of a pink, ribbon-shaped seat belt for its marketing campaign in Saudi Arabia. With this poster, Hyundai addressed two issues—women drivers and breast cancer awareness. This innovative poster was part of the company’s CSR program.
The term ‘CSR’ or ‘Corporate Social Responsibility’ is a favorite in the business world. Organizations play an active role in socio-economic, cultural and environmental changes. But did you know that CSR is also beneficial for businesses? Read on to discover the meaning and importance of corporate responsibilities.
Meaning Of Corporate Social Responsibility
Defining corporate social responsibility is tricky since it’s a broad concept and can take many forms. In a nutshell, corporate social responsibility refers to a management process that helps an organization be socially and morally-accountable in its interactions and business operations with internal and external stakeholders. CSR helps a business be conscious of the impact it has on all aspects of society, including:
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Stakeholder engagement
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Labor standards and working conditions
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Social equity
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Gender balance and inclusion
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Environmental management
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Good governance
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Anti-corruption measures
Several argue that CSR is a marketing tool used to position an organization in a particular way. But if you observe the recent trends, corporate responsibilities have become a prerequisite. They have changed the mainstream discourse about the role organizations should play in addressing global challenges. Social and corporate responsibilities have become key drivers of business success.
Examples Of Corporate Social Responsibility
If you still aren’t convinced about the power of corporate social responsibility, here are some real-life issues addressed by leading companies through their CSR initiatives:
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Climate Change And Sustainability
With the adverse effects of climate change becoming more and more pronounced, sustainable and environment-friendly business practices are on the rise. For instance, technology giant Google has found a way to ensure that their data centers use 50% less energy than others in the world. Johnson & Johnson has started an initiative to leverage the power of wind to provide safe water to communities. And Ford Motor Company has introduced a new engine to reduce greenhouse gas emissions and improve the fuel efficiency of its vehicles.
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Education
Many businesses recognize the importance of an educated and skilled workforce. Hence, leading companies have invested heavily in this sector. Piramal Foundation, the educational arm of the Piramal Enterprises, started a four-year program for government school students in India, intending to groom them for leadership roles. Another example is construction engineering company Larsen & Turbo, which conducts learning programs in schools to enhance students’ knowledge in Science and Mathematics.
Social Responsibility Of An Entrepreneur
Over the past few years, entrepreneurship has grown manifold across the globe—leading to innovations, increasing job opportunities and the promotion of community development. It’s safe to say that entrepreneurs have become a central figure of socio-economic development. Not only is the social responsibility of an entrepreneur instrumental to progress, it’s also important for personal growth. If you are an entrepreneur, you need to implement CSR initiatives for these benefits:
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Interdependence
Business and society influence each other and are interdependent. The more you care about the other, the greater benefits you will reap. For example, the more you invest in social inclusion programs, the more diverse your workforce will be.
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Long-Term Growth
Not only does CSR promote goodwill, but also helps create a good public image for businesses. When enterprises gain recognition for their public service, people start trusting them more. Socially responsible behavior is good for brand-building.
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Redefining Purpose
When you have a socially-responsible goal, you use it to define your mission and vision. It becomes a part of your organization’s identity. Redefining your purpose shows that you are confident enough to use your economic and social power.
Practicing Corporate Social Responsibility
It’s safe to say that business goals can’t be separated from society and the environment. CSR acts as a bridge that promotes overall development and enhances organizational performance. Here are four types of corporate responsibilities that you or your organization can practice:
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Philanthropy
Here, businesses promote welfare through charitable funds or donations to social causes and nonprofits. If there is a charity program you would like to support, you can reach out and address its needs by donating time, money or your organization’s products or services.
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Volunteerism
Volunteering programs are a win-win for everybody involved. You do something beneficial for somebody without expecting anything in return, and the effort reflects well on your organization.
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Environmental Leadership
Climate change has become a growing emergency over the years. You can demonstrate your eco-friendly policy by recycling, supporting environmental causes and switching to eco-friendly procedures.
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Ethical Labor Practices
It’s every organization’s duty to look after and promote their employees’ well-being. You can go the extra mile by offering competitive salaries, providing appropriate leave when needed and offering tuition reimbursement.
The first step to championing corporate social responsibility is to establish trust through your work or your business. Harappa Education’s Establishing Trust course will teach you how to build credibility and reliability. The Trust Toolkit will help you map, assess and establish trustworthiness. The Dominant Factor framework will help you understand the factors of trust for an individual. Present your most reliable self to win the confidence of others before you pursue your socially responsible goals!
Explore topics such as Stakeholder Management, Stakeholder Analysis & Types of Stakeholders from Harappa Diaries and learn to navigate professional relationships better.
