What Is Corporate Social Responsibility (CSR)?

We all want to make a difference in the world, right? Well, Corporate Social Responsibility (CSR) is your chance to do just that while also benefiting your business. It may come as a surprise, but doing good can actually lead to doing well.

Now, you might be asking, what is corporate social responsibility? Well, througout this article, we'll break down the CSR meaning, why it's important, how you can reap the benefits, and how your business can get started. We'll also highlight some inspiring examples of businesses doing good and share tips for making your CSR initiatives successful. By the end of this article, you'll have a better understanding of why CSR is worth investing in and how it can benefit both your business and society as a whole.

Defining Corporate Social Responsibility (CSR)

First things first; what is CSR? And what is CSR in business? Well, the definition of CSR is a 'framework that helps a company be socially accountable to itself, its stakeholders, and the public’. Think of it as nothing more than self-regulation - businesses not only comply with all laws or regulations which govern them but go beyond them. Some see CSR as performing actions that contribute to the overall social good. In some nations or industries that means delivering goods or services without harming the environment. In others, the definition is expanded to include positive actions which benefit employees and communities, or which encourage ethical societal behaviour as a whole. Some companies practice social responsibility by using only ethically-sourced products in manufacturing, and some implement corporate social responsibility mandates by funding medical institutions, schools or advocacy campaigns in their home communities.Corporate social responsibility isn’t one-size-fits-all. But the most effective CSR programs often include some or all of these elements:

• Socially responsible sourcing, operations and business practices
• Funding volunteer and pro-bono work by employees
• Issue advocacy and behavioural change campaigns
• Philanthropy and charitable donations

Why is the main purpose of CSR?

Ok, so you’re up to speed with the definition, but what is the main purpose of CSR? Put simply, its main purpose is to encourage businesses to act ethically and responsibly, and behave in a way that contributes to the overall wellbeing of society and the planet. CSR helps businesses take accountability for their actions and act in a way that balances economic, social and environmental considerations. In short, this means that businesses should not only care about how much profit they are making, but they should consider how their operations impact society and the environment when making business decisions. By promoting CSR, it is hoped that the world can become a better place by ensuring every business does its bit to protect society and the world we live in.

Examples of Corporate Social Responsibility

So, now you are familiar with the definition of CSR and its main purpose, let’s take a look at how CSR initiatives work in practice.

Unilever

Unilever is a brilliant example of a company that has several CSR initiatives. Granted, a multinational business like Unilever will have way more budget and resources than most, but hear us out! Unilever provides a great example for showcasing various types of CSR initiatives, which provides an ideas bank and springboard for smaller brands to develop their initiatives. Here’s an overview of some of Unilever's notable CSR initiatives:

1. Sustainable and regenerative sourcing: Unilever is working towards a ‘nature-positive’ future where forests are protected and restored, agricultural systems are regenerated, water systems are preserved and smallholder farmers are empowered. One of the CSR initiatives that help them work towards this goal is the ‘protect and regenerate nature’ strategy which works towards a deforestation-free supply chain in palm oil, paper and board, tea, soy and cocoa by 2023.
2. Decarbonising: Guided by their Climate Transition Action Plan, Unilever has set out a clear pathway to take them to zero emissions in their operations by 2030 and net zero emissions across their value chain by 2039. To reach their goal, they are working under several CSR initiatives including; transitioning to renewable energy across their operations, finding new low-carbon ingredients, expanding the plant-based product range and developing fossil-fuel-free cleaning and laundry products. Unilever has reduced operational emissions by 68% since 2015 which puts them on track to achieve their interim milestone of a 70% reduction by 2025.
3. Promoting diversity and inclusion: Unilever is working to create a fairer, more socially inclusive world – in their business, through their brands and in wider society. They have set clear goals to eliminate any bias and discrimination in their policies and practices, accelerate diverse representation in leadership, and remove barriers for people with disabilities. Unilever has set itself the goal of being the number one employer for people with disabilities and to have 5% of its workforce be made up of people with disabilities by 2025. To promote inclusivity, Unilever has created a global employee resource group for people with disabilities and their allies to boost awareness of the need for inclusivity. The company also hosts an annual celebration of the International Day of Persons with Disabilities with accessibility masterclasses, and talks on topics such as neurodiversity.
4. Health and wellbeing: Unilever aims to eliminate health inequalities and social exclusion. They are fighting the dangers of unsafe sanitation and poor hygiene by helping millions of people get access to clean, safe toilets and helping them keep their homes clean. One of the ways they do this is by taking action through their brands, Domestos. As part of their Unilever Sustainable Living Plan, they set out to help 25 million people gain improved access to a toilet by 2020. Unilver exceeded that target, helping 29 million people to access cleaner, safer toilets. Their next goal is to help 100 million people access improved standards of sanitation and hygiene by 2030.
5. Reducing waste: Unilver is taking accountability for the waste they produce and seek to change the way they use plastic by treating waste as a valuable resource. They are doing this by transforming their packaging and creating a circular economy for waste. By 2025 they will halve the amount of virgin plastic used in packaging, collect and process more plastic packaging than they sell and lastly, ensure that 100% of their plastic packaging is designed to be fully reusable, recyclable or compostable.

Benefits of CSR

We’ve touched on CSR and its purpose and looked at what that means in practice, but you might be wondering if there are any actual business benefits to employing CSR. Well, the answer is yes! Developing and investing in CSR can lead to several business benefits including;

1. Improved Customer Loyalty

We live in a world where consumers are picky with the businesses they chose to engage with. Consumers often choose to support businesses that demonstrate a commitment to social and environmental issues, so by promoting your CSR efforts, you may be able to attract like-minded customers, leading to increased customer loyalty.

2. Positive Brand Reputation

By authentically working on CSR initiatives, your business will be able to improve its reputation and build trust with customers. This is true for not just customers, but also investors, stakeholders and employees.

3. Recruitment and Retention

CSR has become important in the retention and recruitment of employees as well, particularly among Gen Z and millennials. Not only that, but getting employees involved in CSR initiatives allows them to make contributions to their community, on “company time,”. This increases workplace satisfaction and employee loyalty – more than a new espresso machine or a free lunch ever could.

4. Marketing Opportunities

Increased public interest in sustainability, environmentalism, conservation and social causes provides an enormous opportunity for companies to present themselves on the “right” side of issues. This is a particularly fruitful area for content marketing to important demographic groups such as high-income consumers and millennials. Customer loyalty and engagement with brands also increase dramatically with a marketing focus on CSR.

5. Lowering Costs

Conventional wisdom is that CSR is expensive, which it can be, but it can also produce cost savings. For example, energy conservation is socially-responsible and can also lower energy bills dramatically, particularly for companies which are major consumers of power.

Key Takeaway

So there we have it, everything you need to know about CSR! To recap, implementing CSR initiatives not only benefits society and the world we live in but there are a plethora of business benefits including a stronger and more loyal customer base and an increased brand reputation. The world of CSR can be tricky to navigate, but Don’t Panic is here to help your business develop initiatives that align with your company's values and goals. Whether you're a small business just starting out or a larger organization looking to enhance your existing CSR programs, we've got you covered.So why not get in touch and see how we can help? Or head to our social purpose and cause marketing page now to learn more about what we do and how we can work together to make a positive impact. Let's do some good!