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Did you know that Levi Strauss & Co., a global clothing brand known for their blue denim pants, has pledged to reduce water usage in their manufacturing process? They launched the ‘Water<Less’ campaign to meet this goal.
You might wonder why an apparel chain is investing its resources towards an environmental cause. This is because the textile industry is one of the biggest sources of environmental pollution. And Levi Strauss is hoping to champion the cause of environmental sustainability by acting in socially responsible ways.
This move by Levi Strauss is also known as a CSR initiative. Want to learn more about corporate social responsibility? Read on!
The Importance Of CSR
Corporate Social Responsibility or CSR is a business approach where organizations practice corporate governance to ensure that their operations are beneficial and ethical for society. It holds businesses accountable for their products and services while pushing them to be conscious of the impact they have on every aspect of the environment and society. Over time, various types of social responsibility have become part of standard business practices.
Different types of CSR activities are crucial because of the following reasons:
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Competitive Advantage
The more your business shows concern for the environment and the common public, the more recognition it’ll receive. Whether it’s customers or investors—a socially responsible organization is a trustworthy one. This will further help you stand out from your competitors.
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Reduced Costs
Different kinds of social responsibility help minimize utilization of resources, saving time and money. Being socially conscious is not only advantageous for the environment but also the business you operate. In other words, operation efficiency increases through operational cost savings.
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Increased Funding Opportunities
Investors and corporate donors are more willing to fund or support businesses that practice CSR. If you look at the ‘Sponsors and Partners’ page of any nonprofit business, you’ll notice all the big corporations and businesses on the list.
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Enhanced Employee Engagement
A socially responsible business is also a sustainable one—people will continue to invest in your organization as long as you give back to society. This acts as an assurance for employees and they feel confident about driving an organization’s mission and vision.
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Better Brand Image
Customer loyalty lies at the core of a healthy brand image. The more customers come back for your product, the more value it’ll have in the market. Increased brand value leads to improved brand image, which in turn brings in investors and necessary funding opportunities.
Types Of Corporate Social Responsibility
It’s safe to say that CSR is not only beneficial for society but also for the business. An organization’s goals are incomplete if it’s not investing in CSR activities. If you’re looking to implement CSR, here are the different types of social responsibility businesses commonly practice:
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Economic Type Of CSR
Economic responsibility balances the business, environmental and philanthropic practices of an organization. An interconnected field, it helps facilitate business growth by benefiting the community. For example, sustainable business practices not only sustain the business but also minimizes wastage. In other words, business decisions are made in ways that simultaneously impact society and businesses.
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Ethical Type Of CSR
Ethical responsibility primarily focuses on basic human rights, welfare and working conditions. It’s every organization's responsibility to be accountable for their employees’ well-being. Fair labor practices and taking strict actions against discrimination on the grounds of gender, race or religion, are a few effective ways to ensure ethical CSR. Proactive steps towards employee engagement and job satisfaction—equal pay, appropriate remuneration and leaves—also count.
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Environmental Type Of CSR
It’s no secret that climate change has become one of the top priorities today. Organizations should focus on establishing long-term goals for environmental sustainability and take active steps towards minimizing their impact. You can start by monitoring the environmental impact of your business. Many organizations have already adopted eco-friendly measures (e.g., switching to advanced technologies).
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Philanthropic Type Of CSR
Philanthropic responsibility is a way to serve different sections of society. You can choose to donate your time, money or resources to charities or nonprofit organizations working for the benefit of underprivileged sections of society. Philanthropic initiatives usually include causes like disaster relief, clean water, education, human rights and others. You’ve probably seen several charities do the needful during the COVID-19 pandemic.
If you or your organization wants to drive CSR initiatives with success, learn how to establish trust through your brand. You need to convey your purpose and convince others of your views. Harappa Education’s Establishing Trust course will teach you how to honor commitments and focus on communicating your credibility with adequate transparency and vulnerability. Establish reliability and show that you are worth everyone’s time and trust!
Explore topics such as Stakeholder Management, Stakeholder Analysis, Types of Stakeholders & Corporate Social Responsibility from Harappa Diaries and learn to navigate professional relationships better.
