INTRODUCTION
All businesses must do more than seek strong profit margins for success. Being socially responsible is part of business survival in today's economy. Companies should take a stance on important social issues to build a brand that consumers trust and respect. As a business leader, consider these four types of corporate social responsibility and how it can implement programs that are good for the community and good for company. The four types of Corporate Social Responsibility are Direct Philanthropy Responsibility, Environmental Responsibility, Ethical Business Responsibility and Economic Responsibility.
Direct philanthrophy
Philanthropy is defined as the act of doing charitable work, or an activity designed to improve human welfare. Philanthropy can be broadly defined as love for humankind. It is derived from the Greek words "philos," which means loving and "anthropos," which means humankind. A person who practices philanthropy is called a philanthropist.
The purpose of philanthropy is to improve the wellbeing of humankind by preventing and solving social problems. Philanthropy is not the same as charity. Charity focuses on eliminating the suffering caused by social problems, while philanthropy focuses on eliminating social problems. For example, giving food to a person who is suffering from a famine is charity. The food helps the person for a short period of time, but the person will become hungry again in the future. Teaching the person how to grow food is philanthropy because it eliminates the social problem causing the person's hunger.
Charity is different from philanthropy. The purpose of charity is to ease immediate suffering. It is usually a temporary solution to a social problem. Unlike philanthropy, charity does not focus on ending social problems.
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The example of Philanthropy activities is participate in Holiday Food Drives
Holiday food drives are a great way for businesses, especially small ones, interested in philanthropy to really thrive. Donation centers will advertise months in advance of the holiday season for businesses in the area to commit to donating food and necessary items for the upcoming festivities.
Holiday food drives are an easy way to participate in philanthropic activities and create team-building activities at the same time. Consider a friendly competition among staff. For example, you can tally who can bring in the most canned goods, or have a light-hearted gift-wrapping contest.
Environmental Sustainability Initiatives
Environmental sustainability initiatives enacted by businesses generally focus on two main areas: limiting pollution and reducing greenhouse gases. As the awareness of environmental issues grows, businesses that take steps to reduce air, land and water pollution can increase their standing as good corporate citizens while also benefiting society as a whole.
Environmental CSR aims to reduce any damaging effects on the environment from their business' processes. Activities may focus on:
Ø energy use
Ø water use
Ø waste management
Ø recycling
Ø emissions
Ø eco-friendly office and business travel policies
Advantages of environmental CSR
Green CSR can reduce business risk, improve reputation and provide opportunities for cost savings. Even the simplest energy efficiency measures can generate savings and make a difference to their business. For example:
Ø switching off lights and equipment when not in use
Ø reducing the use of water
Ø reducing the amount of paper waste
Ø Caring about the environment can increase revenue too. Many customers prefer to buy from responsible companies.
We can reduce business' environmental impact in many ways. For example:
Ø create products that can be recycled
Ø optimise product life cycle
Ø source responsibly (e.g. using recycled materials and sustainable timber)
Ø reduce packaging
Ø buy locally to save fuel costs
Ø create an efficient (and fuel-efficient) distribution network
Ø work with environmentally-conscious suppliers and distributors
Corporate social responsibility covers a wide range of important issues, from fair trade and social justice to employee wellbeing and ethical business practices. A major focus of many CSR programs is the environment. Here’s a look at three companies finding success at incorporating “green” principles into their corporate cultures. For example:
1. Unilever,
· Unilever is one of the largest consumer goods businesses in the world. With literally hundreds of brands, including Dove, Hellmann’s/Best Foods, Lipton, Knorr, and Ben & Jerry’s, it’s practically impossible for anyone anywhere to go through the day without coming into contact with a Unilever product. Unilever can also boast of having one of the most comprehensive and far-reaching corporate social responsibility programs of any business on the planet. Through its Sustainable Living Plan, Unilever is leveraging its tremendous global influence to grow its business while “decoupling our environmental footprint from our growth and increasing our positive social impact.” A major goal of the Sustainable Living Plan is to halve the company’s environmental footprint in the manufacturing and use of its products by 2030, specifically through substantial reductions in greenhouse gas emissions, waste production and water usage, and by sourcing all of its raw materials sustainably. And Unilever appears to be well on its way to achieving its goals. In 2015, the company reported a 39% reduction per ton of production in CO₂ emissions from energy, and a 37% reduction per ton production in water consumption. Additionally, as of 2015, Unilever is sourcing 60% of its raw materials sustainably. All of this while achieving marked overall business growth.
2. Starbucks
· Beginning with one store in Seattle’s Pike Place Market in 1971, Starbucks has expanded exponentially to become the world leader in coffeehouses with over 23,000 locations worldwide. From its start, Starbucks has made social responsibility a cornerstone of its corporate identity, placing particular emphasis on issues of sustainability and the environment. In 2008, notwithstanding a recession that was threatening its very existence, Starbucks committed to a set of ambitious environmental goals, including improvement in the ethical sourcing of it coffee, and decreasing the environmental footprint of its coffeehouses. By 2015, the company had made impressive gains on those commitments. According to its 2015 Global Responsibility Report, 99% of Starbuck’s coffee met its ethical sourcing criteria. Also, Starbucks rigorous green building practices had resulted in over 800 of its locations meeting the highly-recognized Leadership in Energy and Environmental Design (LEED) certified rating. Starbucks continues to lead the way among major companies in its corporate social responsibility practices, establishing new goals for 2020 that include increasing its investments in farmers and their communities, and expansion of green retail buildings and operations.
3. LendEDU
· LendEdu, an online marketplace for student loans and student loan finance, took action to support the sustainability efforts of Vermont-based nonprofit One Tree Planted. One Tree Planted was founded in 2014 with the mission to “reforest our planet and provide education, awareness and engagement on the importance of trees.” The nonprofit is currently involved in reforestation activities in North America, South America, Africa and Asia. In January 2017, LendEDU announced that it had partnered with One Tree Planted to donate the funds needed to plant one tree for every LendEDU customer it helps in 2017. According to LendEDU Co-Founder and CEO Nate Matherson, “Our team was looking for a way to give back in a meaningful way. We were inspired by [One Tree Planted’s] mission and fight against reforestation.”
4. JAL Group
· The JAL Group has placed the control of environmental impact and the protection of the environment as core themes in business operations, as continue to implement "Sky Eco", so will be able to pass this rich earth on to the next generation and they will always be able to see the beautiful earth from the sky. We actively work on initiatives to prevent global warming. We are working to reduce CO2 emissions per revenue-ton-kilometre (RTK) from JAL Group aircraft by 23% in 2020, compared with 2005 level. We work to reduce CO2 emissions through a variety of different measures including changing our aircraft to lower fuel consumption and low noise Boeing 787, 737-800 and the Embraer 170 aircraft, conducting "Eco Flights", reducing weight, and washing engines. We work together with the associated ministries and aviation authorities such as air traffic control in various countries to introduce leading methods in fuel efficient aviation, and will actively continue to do so in the future. We are collaborating in the research and development of aviation biofuel made from plants (non-food). We will collaborate on R&D which can lead to future aircraft and operating systems with less impact on the environment. We promote energy saving activities in our ground facilities (offices, factories etc.). We actively promote social and environmental activities and environmental awareness activities. By continuing to conduct environmental and social activities we are able to contribute to the long term conservation of the environment, and we strive to improve the environmental awareness of children who will lead the next generation, as well as all of society, and our own employees. We will continue to cooperate in research to clarify the mechanisms of global warming through the monitoring of the earth's CO2 concentrations, and to participate in the atmosphere observation project using our aircrafts. We will continue to collaborate in the forest fire reporting project. We will continue our "SORAIKU" environmental awareness program for children. We will work with our customers to promote environmentally friendly activities. We will proactively promote environmental activities that employees can participate in, as well as environmental education for employees and their families.
Ethical Business
Business ethics are how companies conduct themselves in their practices and policies.The theory of social responsibility is built on a system of ethics,in which decisions and actions must be ethically validated before proceeding.If the action causes harm to society or the environment then it would be considered to be socially irresponsible.
The theory of social responsibility and ethics applies in both individual and group capacities. It should be incorporated into daily actions/decisions, particularly ones that will have an effect on other persons and/or the environment. In the larger, group capacity, a code of social responsibility and ethics is applied within said group as well as during interactions with another group or an individual.
Businesses have developed a system of social responsibility that is tailored to their company environment. If social responsibility is maintained within a company than the employees and the environment are held equal to the company’s economics. Maintaining social responsibility within a company ensures the integrity of society and the environment are protected.
Organizations can manage ethics in their workplaces by establishing an ethics management program. Brian Schrag, Executive Secretary of the Association for Practical and Professional Ethics, clarifies. "Typically, ethics programs convey corporate values, often using codes and policies to guide decisions and behavior, and can include extensive training and evaluating, depending on the organization. They provide guidance in ethical dilemmas." Rarely are two programs alike.
"All organizations have ethics programs, but most do not know that they do," wrote business ethics professor Stephen Brenner in the Journal of Business Ethics (1992, V11, pp. 391-399). "A corporate ethics program is made up of values, policies and activities which impact the propriety of organization behaviors."
Economic social responsibility
Economic responsibility focuses on practices that facilitate the long-term growth of the business, while also meeting the standards set for ethical, environmental and philanthropic practices. By balancing economic decisions with their overall effects on society, businesses can improve their operations while also engaging in sustainable practices. An example of economic responsibility is when a company modifies its manufacturing processes to include recycled products, which could benefit the company by potentially lowering the cost of materials and also benefit society by consuming fewer resources.
Reducing waste and emissions doesn't just help the environment - it saves money too by cutting utility bills and waste disposal costs, thus bringing immediate cash benefits. However, consider these other benefits as well:
* Building a reputation as a responsible business sets a company apart.
* Many consumers prefer to buy from ethical businesses.
* Some customers don't just prefer to deal with responsible companies, but insist on it. For example, sales of 'environmentally friendly' products continues to grow - and these products often sell at a premium price.
* Companies often favor suppliers who demonstrate responsible policies as this helps them to minimize the risk of any damage to their own reputations.
* A good reputation makes it easier to recruit employees.
* Employees stay longer, reducing the costs and disruption of recruitment and retraining.
* Employees are more involved and motivated and, as a result, they're more productive.
* CSR helps ensure compliance with regulatory requirements.
* Involvement with the local community creates ideal opportunities to generate positive press coverage.
* Good relationships with local authorities make doing business easier.
* Understanding the wider impact of a business can help in thinking up profitable new products and services.
* CSR can make firms more competitive and reduces the risk of sudden damage to their reputation and sales. Investors are more willing to provide financial resources to such firms as a result.
* Building a reputation as a responsible business sets a company apart.
* Many consumers prefer to buy from ethical businesses.
* Some customers don't just prefer to deal with responsible companies, but insist on it. For example, sales of 'environmentally friendly' products continues to grow - and these products often sell at a premium price.
* Companies often favor suppliers who demonstrate responsible policies as this helps them to minimize the risk of any damage to their own reputations.
* A good reputation makes it easier to recruit employees.
* Employees stay longer, reducing the costs and disruption of recruitment and retraining.
* Employees are more involved and motivated and, as a result, they're more productive.
* CSR helps ensure compliance with regulatory requirements.
* Involvement with the local community creates ideal opportunities to generate positive press coverage.
* Good relationships with local authorities make doing business easier.
* Understanding the wider impact of a business can help in thinking up profitable new products and services.
* CSR can make firms more competitive and reduces the risk of sudden damage to their reputation and sales. Investors are more willing to provide financial resources to such firms as a result.
BENEFITS OF SOCIAL RESPONSIBILITY
THE ABILITY TO HAVE POSITIVE IMPACT IN THE COMMUNITY
~ Keeping social responsibility front of mind encourages businesses to act ethically and to consider the social and environmental impacts of their business. In doing so, organization can avoid or mitigate detrimental impacts of their business on the community. In some cases, organization will find ways to make changes in their services or value chain that actually delivers benefits for the community, where they once didn’t.
IT SUPPORTS PUBLIC VALUE OUTCOMES
~Put simply, public value is about the value that an organization contributes to society. A sound, robust corporate social responsibility framework and organizational mindset can genuinely help organizations deliver public value outcomes by focusing on how their services can make a difference in the community. This might happen indirectly, where an organizational services enable others to contribute to the community, or directly through the organizational own activities, such as volunteerism and philanthropy.
IT SUPPORTS BEING AN EMPLOYER OF CHOICE
~Being an employer of choice typically translates into the company’s ability to attract and retain high caliber staff. There are ways to approach being an employer of choice, including offering work life balance, positive working conditions and work place flexibility. Studies have shown that a robust corporate social responsibility framework can also help a company become more attractive to potential future employees who are looking for workplaces with socially responsible practices, community mindedness and sound ethics.
IT ENHANCES RELATIONSHIP WITH CLIENTS
~A strong corporate social responsibility framework is essential to building and maintaining trust between the company and clients. It can strengthen ties, build alliances and foster strong working relationships with both existing and new clients. One way this can be achieved is by offering pro or similar services where a company can partner with not-for-profit organizations to support their public value outcomes, where funds or resources may be limited. In turn, this helps deliver public value outcomes that may not have been delivered otherwise.
IT ENCOURAGES BOTH PROFESSIONAL AND PERSONAL DEVELOPMENT
~Providing employees with the opportunity to be involved in a company’s socially responsible activities can have the benefit of teaching new skills to staff, which can in turn be applied in the workplace. By undertaking activities outside of their usual work responsibilities, employees have the chance to contribute to work and causes that they might feel passionate about, or learn something entirely new which can help enrich their own perspectives. By supporting these activities, organizations encourage growth and support for employees.
CONCLUSION
The CEO’s running the business organizations must understand that Corporate Social responsibility has become a mandatory practice and they can’t deny it anymore. Corporations, business houses and entrepreneurs can improve their public image by supporting non profits through volunteerism and making monetary or materialistic donations to build strong partnerships with their consumers and the community alike. When these philanthropic efforts make headlines and get good media coverage, companies increase their chances of becoming favourable in the eyes of their consumers.
