Corporate Social Responsibility

Definition of Corporate Social Resonsibility

 

          As it has no globally accepted definition, the form that CSR takes in each company varies widely. The manifestation of CSR in different companies depends on many different factors, but the three main factors are the industry of a given company, its product, and its size. An agricultural company, for example, would have a different way of approaching CSR than an oil company. An agricultural company might focus its energies on producing organic food while an oil company might spend its energies on promoting safe drilling practices. This idea is the basis of our thinking. What does CSR look like for a company whose product is fundamentally beneficial, like organic food? And for a company whose product is inherently harmful to the environment like oil?

 

Our definition 

 

"A concept whereby companies both decide voluntarily to contribute to a better society and a cleaner environment, and integrate social and environmental concerns into their business operations and their interactions with their stakeholders."

 

          Corporate Social Responsibility is a concept that covers many different companies and their practices. Most definitions that we found center around either an external form of CSR, meaning they focused on external actions taken and money given, or a more internal form, concerning policy decisions that affect the shareholders and employees. Internal CSR encompasses ideas like workforce diversity, workforce fairness, environmental records, and transparency.[1] All of these ideas deal with how the product is made and the people who make it. CSR can also take the form of external actions through community involvement or corporate philanthropy.[2] Depending on the industry, product, and size of the company, CSR can take different forms, and some companies are better suited to develop internal or external CSR policies.

 

          An important aspect across all forms of CSR, however, is that while some countries hold international corporations legally responsible for how they interact with their employees and the environment, corporate responsibility is often exhibited in the form of voluntary initiatives by companies.[3] With an increase in public access to information, it is becoming more common for corporations to have CSR policies. This argument ties into the belief that a corporation's CSR can be used as a tool for advertisement, as customers are more likely to buy a product that is from a corporation with socially responsible practices. Many corporations do not buy into that belief, however, arguing that developing CSR practices would harm their business. The interesting part of CSR is that public awareness about it creates a type of social regulation where legal regulation might not exist. This system puts an emphasis on the reputation of a corporation, so when all else is equal between competing corporations, companies  will be driven to improve their reputation through becoming more responsible. In a nutshell, corporate social responsibility is becoming an economic factor in corporate economic competition. But is CSR beneficial for society if the only reason companies are socially responsible is their income?