Corporate Social Responsibility

 Introduction

When a corporation conducts business ethically, taking into consideration the social, environmental, and economic impacts of how they operate and going above and beyond compliance, they are demonstrating its commitment to corporate social responsibility (CSR). in accordance with McWilliams et al (2006)

The term "corporate social responsibility" (CSR) describes business practices "that enhance some societal benefit beyond the interests of the firm and that which is mandated by law."

Porter and Kramer (2006) and Husted and Salazar (2006) have both referred to CSR as a method of combining business and society that is concerned with "the influence of company behaviour on society." In the latter's argument, it was stated that to develop CSR, "We must base it in a broad understanding of the interaction between a company and the community while at the same time anchoring it in the plans and actions of specific enterprises."

When defining CSR as "the continuing commitment by the organisation to act ethically and contribute to economic growth while improving the standard of life of the workforce and their loved ones and the native society at large," the CIPD placed greater emphasis on it within the organisation. (2005 Redington)

Strategic CSR defined

To create a corporate social agenda, which will determine what social concerns to concentrate on and to what extent, one must first decide how much the company should be involved in social issues. Choosing is always at the heart of strategy, as Porter and Kramer (2006) note. They contend that businesses that "create targeted, aggressive, and integrated social efforts in line with their core objectives will progressively distinguish themselves from the pack." They also think that the company will have the most social effect and get the biggest commercial benefits through smart CSR. According to Baron (2001), CSR is what a company does when it offers "a public good in connection with its.

Although it very closely relates to HR strategy, CSR strategy also must be connected to the company strategy. This is because of its focus on socially responsible conduct both inside the organization's internal community and with society at large. In the latter case, this means developing an environment at work where individuals are treated fairly and ethically and their legal rights at work are safeguarded.

CSR activities

According to McWilliams et al., (2006) CSR activities include incorporating social characteristics or features into business practices, embracing progressive human resource management strategies, improving environmental achievement through recycling and pollution abatement, and advancing the objectives of community organizations.

Business in the Society also noted an increasing focus on ethical business as a source of competitive advantages as companies move from risk reduction to opportunity creation.

According to an Industrial Relations Services poll (Egan, 2006),

·         Most firms think that employment policies that guarantee employees are treated fairly and professionally will increase hiring and retention.

·         The concern about ethics in the workplace is frequently seen as a component of a larger social responsibility package.

·         The most prevalent aspects of HR practise covered by policies on ethical employment include hiring, diversity, redundancy/dismissal protocols, and employee involvement.

 

CSR strategy development process

    1.     Understanding society showcases the larger framework in which business functions as well              as the social and environmental effects that business has on society.

2.       Building capacity is enhancing others' abilities to efficiently run the company. Suppliers, for instance, are aware of the company's environmental policy, and employees may incorporate social and environmental issues into their daily work.

3.       People that are committed to improving the standard of living and the environment are always going against the norm in terms of a more sustainable future.

4.       Understanding the risks and possibilities each important stakeholder provides is crucial for successful stakeholder relations. collaborating with them by consulting with them and acknowledging their opinions.

5.       Strategic perspective: Making sure that social and environmental considerations are included in the company plan and are fundamental to how the business functions.

6.       Utilizing diversity means appreciating that everyone is special, which would be reflected in honest and open corporate procedures.

 

It is necessary to provide training and guidance to employees when implementing CSR strategies. Also, they must be evaluated toughly.

 

References

 

McWilliams, A, Siegal, D S and Wright, P M (2006) Corporate social responsibility: strategic implications,

Journal of Management Studies, 43 (1), pp 1–12

 

Porter, M E and Kramer, M R (2006) Strategy and society: the link between competitive advantage and

corporate social responsibility, Harvard Business Review, December, pp 78–92

 

Husted, B W and Salazar, J (2006) Taking Friedman seriously: maximizing profits and social performance,

Journal of Management Studies, 43 (1), pp 75–91

 

Redington, I (2005) Making CSR Happen: The contribution of people management, CIPD, London

 

Baron, D (2001) Private policies, corporate policies and integrated strategy, Journal of Economics and

Management Strategy, 10 (7), pp 7–45

 

Egan, J (2006) Doing the decent thing: CSR and ethics in employment, IRS Employment Review, 858, 3

November, pp 9–16

    

   Please share your valuable ideas in the comment section

Also, follow me on youtube

TV Channel U

 Email me

evonherath@gmail.com