Corporate Social Responsibility

Something that many companies actually do but dont always put a name to is to work with their local charities or make sure they are giving back to their local community in some way, in other words, Corporate Social Responsibility (CSR). To many struggling in the current economic climate giving back can also seem low on the list or priorities when keeping the company going is the main priority.

Corporate Social Responsibility is not just about giving back though, it is self regulation which is integrated into the business model, ensuring that a business monitors and ensures its active compliance with the law, ethical standards and international norms. Its goal is to encourage the business to have a positive impact on the environment, consumers, employees, communities, stakeholders and members of the public.

For many larger businesses the focus is on shareholders and CSR is a way of giving back and focussing on a larger community of stakeholders. Many have called it the Triple Bottom Line and companies are increasingly being asked for evidence as to how they meet this.

For some companies simply using fair trade products is enough but for others the commitment to community and environment goes far deeper. Since 2001 the John Lewis Partnership has produced a report on CSR looking at how they are managing their environmental impact, working with suppliers and local communities and how their employees or Partners share and contribute to their commercial success and its rewards. The report includes things such as a clear commitment to CSR for staff, the environment and customers, products and suppliers and of course local communities. The aim is to do things like deliver a 15% absolute reduction in Carbon Dioxide emissions by 2020 and by December 2015 make sure that 100% of the soya in own brand products comes from Responsible sources. The company contributes 1% of pre tax profits to charitable and community initiatives and provides support to overseas disasters through the Red Cross. They participate in volunteer schemes and are partners in community sports schemes.

This all sounds great for large organisations and multi nationals but how can a smaller business make a difference? Business is not an isolated thing, CSR is about understanding your impact on the wider community and considering the impact of your business in an ethical way. It means going beyond the minimum legal requirements with employees and with your efforts towards environmental support, dealing responsibly with customers and measuring the effectiveness of these efforts.

This can have business benefits in building a solid reputation as a responsible business, good to work for and affecting the wider community in a positive way. It goes much further towards building your brand than straight forward marketing efforts because you are giving back. You can also bring cash benefits to the business by cutting waste and utility bills. Saving money by recycling and reusing waste products as well as by cutting down on waste is part of CSR.

Recruitment and retention of employees can also be helped by ensuring that people are treated well and motivation of employees can also be enhanced. Working with the local community will not only give positive press but will also help to ensure you have good relationships with your local council.

If you want to know more about giving back via SAMS, as a volunteer, mentor or via one of our charities please follow the links.