How well do you know Corporate Social Responsibility (CSR)?

Corporate Social Responsibility (CSR) or Social Impact is a form of international private business self-regulation aimed at contributing to societal goals of a philanthropic, activist, or charitable nature. CSR is a strategic initiative that contributes to a brand's reputation and must be integrated into a business model to be successful. Businesses may engage in CSR for strategic or ethical purposes, and proponents argue that corporations increase long-term profits by operating with a CSR perspective. Critics question the "lofty" and sometimes "unrealistic expectations" in CSR, or that CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. A wide variety of definitions have been developed but with little consensus, and a difference exists between the Canadian, the Continental European, and the Anglo-Saxon approaches to CSR. A more common approach to CSR is corporate philanthropy. Creating shared value, or CSV, is based on the idea that corporate success and social welfare are interdependent. Many companies employ benchmarking to assess their CSR policy, implementation, and effectiveness. Based on research studies, a positive relationship exists between a firm's corporate social responsibility policies and corporate financial performance. Corporate social irresponsibility in the supply chain has greatly affected the reputation of companies. CSR may be based within the human resources, business development or public relations departments of an organisation, or may be a separate unit reporting to the CEO or the board of directors. Social accounting is the communication of social and environmental effects of a company's economic actions to particular interest groups within society and to society at large.Overview of Corporate Social Responsibility (CSR)

• Social accounting emphasizes corporate accountability and reporting on socially relevant behavior.

• Reporting guidelines and standards exist, but international or national agreement on meaningful measurements of social and environmental performance has not been achieved.

• All companies listed on the Johannesburg Stock Exchange (JSE) are required to produce an integrated report that reviews environmental, social, and economic performance alongside financial performance.

• The Carbon Disclosure Project is a reputable institution that capital markets turn to for credible sustainability reports.

• Organizations such as the Forest Stewardship Council, International Cocoa Initiative, and Kimberly Process provide verification resources for CSR.

• Ethics training inside corporations has helped CSR to spread and aims to help employees make ethical decisions.

• Common CSR actions include social license to operate, stakeholder engagement, and sustainability reporting.

• CSR practices enable widespread reach into a variety of outside markets, an improved reputation, and stakeholder relationships.

• The business case for CSR includes the triple bottom line, risk management, brand differentiation, reduced scrutiny, and supplier relations.

• CSR programs can be an aid to recruitment and retention, particularly within the competitive graduate student market.

• CSR has been credited with encouraging customer orientation among customer-facing employees.

• CSR can limit risks and enhance a company's reputation and brand perception.Corporate Social Responsibility (CSR) is a business approach that seeks to integrate economic, social, and environmental concerns in a company's operations. It has been found that CSR can bring benefits to businesses, including improved reputation, customer satisfaction, and employee morale. CSR can also encourage sustainable practices in different industries and improve collaboration with suppliers. However, there are criticisms of CSR, including the argument that a corporation's purpose is to maximize returns to its shareholders, and that CSR programs are undertaken by companies to distract the public from ethical questions posed by their core operations. Ethical ideologies of CEOs can also influence their preferences for CSR outcomes. The rise in popularity of ethical consumerism over the last two decades can be linked to the rise of CSR, but there is a discrepancy between consumer beliefs and intentions, and actual consumer behavior. Shareholders and investors, through socially responsible investing (SRI), are using their capital to encourage behavior they consider responsible. Some national governments promote socially and environmentally responsible corporate practices, and collective bargaining is a way nations promote CSR. Fifteen European Union countries are actively engaged in CSR regulation and public policy development.Corporate Social Responsibility (CSR) Around the World

• CSR approaches to regulation vary case-by-case and can be complicated.

• Canada adopted CSR standards in 2007.

• The Heilbronn Declaration is a voluntary agreement in Germany to initiate responsible entrepreneurship.

• Some researchers suggest all regulation is "harmful".

• In the 1800s, the US government could take away a firm's license if it acted irresponsibly.

• Denmark made it mandatory for large companies to include CSR information in financial reports.

• Mauritius and India have mandatory CSR spending laws.

• India has the only mandatory CSR Act in the world.

• Crises have encouraged adoption of CSR.

• The European Union has a framework for CSR.

• The UK retail sector showed the greatest rate of CSR involvement.

• Nielsen Holdings reported that 66% of consumers will spend more on products from sustainable brands.