What is the Meaning of Corporate Social Responsibility?
Corporate Social Responsibility is a private business self-regulating model that helps a company to be accountable to itself, its stakeholders, and to the public. In essence, when a company adopts CSR policies and practices, its planning and decision-making reflect the potential impact of its corporate actions on various stakeholders and constituencies.
Companies need to be responsible to itself and its shareholders before being socially responsible. As Dr. Stephen Covey mentions on his book the seven habits of highly effective people, a private victory precedes a public victory.
It was originally created as an ethic component part of the organizational strategy of companies. CSR requires more than compliance with regulatory requirements, it engages in actions that further social good, beyond the interest of the firm and that which is required by law. Regulatory compliance sets the floor but for the Corporate Social Responsibility organizations furtherance of the social good, the sky is the limit.
What is CSR and why it is Important?
Consumers expect your corporate social responsibility policy to operate in accordance with nationally and internationally recognized standards. Failure to align with these expectations might create a range of reputational and operational risk. Consumers might have chosen your company because your CSR policy aligns with their values.
CSR regulations are similar to ethic or moral norms because they often lack the power of enforcement laws do. However, breach of those norms might have worse consequences than that of a legal breach. Consumer sentiment and corporate reputation might be affected.
Our team can assist you to understand and implement policies and standards to further your corporate social objectives. This will have a positive impact on your company’s reputation and consumer sentiment. By implementing a CSR policy your company might improve its relationship with the community, opinion leaders and stakeholders.