In the past, many corporations had one expectation: to make themselves and their investors money. Today organizations are experiencing more pressure to consider their impact on social systems and the environment.
With exploding movements surrounding racial justice and equality, having corporate social responsibility integrated into your business’ ideology is crucial for future business administrators.
What is corporate social responsibility?
Corporate social responsibility, or CSR, is a governing principle of organizations (ranging anywhere from technology firms to restaurateurs) in which social and environmental concerns are incorporated into business strategy and operation. CSR is an increasingly popular and flexible opportunity for business leaders.
While many corporations may implement CSR programs into their operations, no outside regulation or benchmark exists that determines the validity of a given CSR program. Instead, the hope is that companies can work within their specific frameworks and make choices that aim to achieve positive economic, social, and environmental impact.
This effort is also referred to as the “Triple Bottom Line”— a principle that advocates for the inclusion of people and the planet into corporate practices. This is in contrast with the classic “bottom line,” which traditionally focuses only on profits.
What does corporate social responsibility look like?
Typically, large-scale CSR programs arise when a business has become successful enough to allocate resources to social efforts. The larger and more successful the business, the more societal pressure they may experience to use their platform to speak out and give back to society. This does not mean smaller businesses do not incorporate CSR into their companies—it just might be on a smaller scale or less publicized.
Categories within CSR include:
- Environment and sustainability efforts—This effort includes taking steps to reduce a company’s carbon footprint, like evaluating energy and material uses throughout the office and supply chain.
- Philanthropy—Many companies will choose various causes and nonprofits to support, either by directly giving money and services or by organizing group volunteer days.
- Ethical labor practices—Businesses can ensure that every step of their supply chain is providing safe working conditions and living wages to employees.
- Social and workplace equity—This principle involves promoting diversity inside and outside of the workplace across race, religion, abilities, gender, sexual orientation, and more.
Benefits of corporate social responsibility
Implementing CSR programs is not only beneficial to society—it’s proven to improve business too. Employees and customers alike are increasingly considering a business’s social impact when choosing a company to work with or purchase from.
It’s also shown that companies with CSR programs incur a higher profit margin. As noted in Harvard Business Review, “Research has shown that companies with effective Corporate Social Responsibility (CSR) programs are more profitable than those that aren’t.” This could be due to a combination of improved brand image as well as lowered production costs through sustainable initiatives.
Corporate social responsibility examples
Many prominent companies have a long history of CSR. For up and coming business administrators, these are some good examples to look to as models of successful CSR programs.
- Google—This tech giant hit its goal of having 100% renewable energy in 2017. Today they continue to invest in sustainable energy sources and cultivate a diverse, employee-forward workplace.
- Ben and Jerry’s—The ice cream you may know and love is also committed to a wide range of advocacy and social justice initiatives. From sustainable food systems to LGBTQ equality, they incorporate CSR into every aspect of operations.
- Patagonia—What is an outdoor brand without a commitment to the outdoors? Patagonia’s CSR program revolves around support of grassroots environmental efforts and fair trade production.
Looking ahead
As the country mobilizes over movements surrounding climate change, policing, and Black Lives Matter, constituents may come to expect more from businesses than the loose guidelines of corporate social responsibility. Instead, they may be looking for corporate social justice. This means more accountability and measurable results throughout every facet of an organization.
At Pacific Oaks, our Business Administration degree will help you succeed in your career goals while also inspiring you to create change in your industry. By maintaining an understanding of corporate social responsibility in your business education, you can become an industry leader in community engagement and social good.
Pacific Oaks College is proud to introduce our Bachelor of Science in Business Administration program at our Pasadena and San Jose campuses as well as online! Request info to learn more!
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