Corporate Social Responsibility and All That You Need To Know
Until recently, all businesses were almost entirely driven by one goal: profit. Every action and initiative were aimed at maximizing profits.
Over the past decades, business leaders have realized that they are responsible for more than just maximizing profits for shareholders or executives. They have a social responsibility not only to their businesses but also to the people and the planet.
But thankfully, companies that are socially responsible have emerged.
Corporate social responsibility— what it entails
Corporate social responsibility (CSR) is the notion that businesses have a responsibility for the society they are a part of.
Companies that embrace corporate responsibility are often organized to empower employees to act and be socially responsible. This is nothing but self-regulation, which can be expressed through the business’s modes of operation or initiatives.
How is corporate social responsibility categorized?
Traditional corporate social responsibility may be divided into four major categories: environmental, philanthropic, ethical, and economic.
The environmental responsibility-The belief that companies should be as environmentally responsible as possible is called environmental responsibility. This is one of the most popular forms of corporate social responsibility.
There are many ways for companies to take environmental responsibility seriously.
Reducing pollution, greenhouse gas emissions, and water consumption are five of the most common ways companies ensure environmental responsibility.
Increased reliance on sustainable resources, renewable energy, and recycled materials can also be a determinant of a company’s social responsibility.
Companies can also compensate for negative environmental impacts by planting trees or funding research.
- Ethical responsibility-
Ethical responsibility is nothing, but the responsibility exercised by a company wherein it commits to operating in a responsible, ethical, and fair way. Companies that show ethical responsibility always treat their stakeholders in a fair manner. And that is one of the most important reasons why employees, suppliers, and investors are almost always satisfied with being associated with a company that observes ethical responsibility.
- Philanthropic responsibility-
A business’s goal to make the world and society better is called philanthropic responsibility.
Organizations that are driven by philanthropic responsibility also commit a portion to charitable causes. Many companies donate to charities or non-profits that align with their guiding mission, but others give to worthy causes that are not directly related to their business. Some go so far as creating their own charitable trust to give back.
- Economic responsibility-
A firm’s commitment to doing good in the above areas is called economic responsibility. The ultimate goal is to impact society, the environment, and people positively.
Importance of corporate social responsibility-
Many firms feel driven to adopt corporate social responsibility because of moral convictions. This can have several benefits.
For example, corporate social responsibility initiatives can be powerful marketing tools that help companies position themselves favourably before investors, consumers, and regulators. CSR initiatives can also increase employee engagement and satisfaction, which are key measures to drive retention. These initiatives can attract employees with strong convictions similar to those of the company.
Although the concept of social responsibility is quite widespread, there are still businesses that prefer to make profits than being socially responsible. Green Sole is not among them. We cater to people’s footwear needs without losing the spirit of corporate social responsibility. We create amazing environment-friendly shoes that everyone can wear without compromising on style.