What is corporate social responsibility (CSR)?
Corporate Social Responsibility (CSR) is a concept whereby willing businesses knowingly and voluntarily reach beyond their primary functions of acquiring and distributing profits in order to impact positively on their working, social and natural environment. CSR represents an awareness of the evolving position and importance of companies in modern global society and the responsibility that stems from that. CSR practices relate to a company’s entire sphere of influence and range of activities, as well as the relationships it establishes as a result: from what it produces to how it trades, whether it is law-abiding; how it acts as an employer, trainer and positive influence on the development of its human resources; how much it invests in the local community and respects human and labour rights and the ways in which it contributes to environmental protection. In other words, CSR is linked to a company’s responsible and ethical relationship towards everything that its business can impact on, which relies on the assumption that said company cares for the natural and social environment in which it operates, that is about local community, environment, market and its employees.
Companies’ CSR benefits
- strengthening reputation and company brands;
- increasing investor confidence and easing access to capital
- reducing risks by strengthening ties with the local community
- enhancing employee loyalty and motivation
- increasing productivity and innovation
- boosting competitiveness and market positioning