Corporate Social Responsibility

Corporate Social Responsibility

I used to think that “Corporate Social Responsibility” or  “CSR” meant a corporation’s philanthropic arm, giving out scholarships, going on a feeding program, planting trees, etc., carried out through corporate foundations or BINGOs ( “Business-Initiated Non-Government Organization”).

There is also this perception that CSR activities are part of a corporation’s marketing campaign, an effort to paint it as socially-responsive. Also, that CSR serves as a tax shelter.

These might be true for some, but I’ve learned that CSR is much more.

Social responsibility means taking into account the social and environmental effects of business operations. It means going beyond what the law requires to be truly accountable for their impact. For example, it means making sure that factory outflows do not pollute the environment. It means making PWD facilities available. It means paying fair wages. CSR activities are not always flashy, but address the core issues of social responsibility.

Entrepreneurs and managers do have to balance their business, environmental, and social goals. They have to keep the business afloat and profitable. CSR means that in the pursuit of profits, there is a consciousness of social and environmental impacts and a willingness, an effort, to address these concerns.

So yes, CSR includes philanthropy - scholarships, donations to the community, giving relief goods after natural calamities, volunteer community service. But it also includes working to sustain the environment with ecologically-friendly business practices like re-using and recycling. It is also concerned with employee benefits. It also includes paying the right amount of taxes, being financially transparent, and investing in projects that promote the well-being of communities in which they operate.

If you’re an entrepreneur, think of the ways you can look after the community where your business (or business office) is located. If you’re an employee, think about what you can do to help your company become more socially responsible.