Corporate Social Responsibility (CSR) is a hot buzzword in business right now, and this is the time of year when many companies and firms put their efforts on display for the world. We are inundated with commercials showcasing the various social activities and incentives employed by companies across all markets. This is also a good time of year to consider what our own organizations are doing with CSR. Research provides good rationale for CSR initiatives: Customers and clients like doing business with socially responsible organizations. More importantly, when done well—not just as a marketing tool—social initiatives do have strong benefits for companies and the communities they serve.
What is CSR?
In broad terms, Corporate Social Responsibility refers to an organization’s efforts to contribute to social and environmental well-being. These contributions may be local or global, depending on the company’s own reach and focus.
According to Harvard Business Review, most CSR plans fall into one of three categories: Philanthropy, Operational Effectiveness, and Business Model. Philanthropy is probably the most common of the three types of CSR, including donations, community engagement, and support for employee volunteerism. Operational Effectiveness comprises investments in environmental sustainability or employee well-being, such as company-wide recycling or conservation efforts. Business Model CSR specifically addresses social or environmental concerns as part of the business model, for example the shoe companies that donate a pair of shoes to children in need for every pair they sell to you.
Why have CSR?
Companies and firms with a sense of social responsibility enjoy a range of benefits aside from the intrinsic benefits to the individuals or communities served by CSR programs. Community engagement can make employees feel more empowered and satisfied with their work. These programs can be used as part of team building and lead to improved company reputation and public relations.
How do we create effective CSR?
The first rule of a good CSR plan is this: It has to be genuine. While many companies look to CSR for its public relations and other benefits, those benefits should not be the focus. A good strategy means benefits to the company will naturally follow. A good CSR strategy plays to the organization’s strengths and interests, focusing on issues relevant to your firm’s field, location, and reach. A longstanding tradition in law firms, for example, has employees taking on pro bono projects and cases, either at the local level or in developing areas. Pro bono legal work aligns with the firm’s area of expertise, enhances the firm’s reputation, and fits the firm’s specific place in a given community. The firm benefits, but the benefits stem from good strategy and strong public service.
A good CSR plan includes clear goal setting and strategies to measure the benchmarks of these goals. It’s more than just writing a check once or twice a year. True partnership with community organizations, with regular contact and involvement. Communicating progress keeps employees and other stakeholders fully engaged with the action. CSR is a building process, so it’s best to start with achievable initiatives and expand as these initiatives progress.