Corporate Social Responsibility is... ...a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis

CSR describes the principle that companies can and should make a positive contribution to society. CSR is the practice of managing the social, environmental and economic impacts of the company, being responsive to 'stakeholders' (those who are affected by a business operation) and behaving according to a set of values which are not codified in law. In practice the term can refer to a wide range of actions that companies may take, from donating to charity to reducing carbon emissions.

CSR initiatives can be approached from multiple perspectives, depending on your operations: Environmental — focusing on ecological concerns; from recycling to improving your organisation's entire carbon

footprint

Community-based — supporting local community projects to improve lives of the people local to your organisation; financially or through volunteer programmes

Internationally — focusing on issues such as fair trade, sustainability, working conditions, child labour and human rights

Workplace-based — focusing on improving the rights and well-being of your staff; reviewing issues including remuneration, recruitment, induction, health and safety, whistle-blowing, working conditions, diversity and training

Community investment– Many companies develop community projects in the vicinity of their sites, to offset negative impacts or 'give back' to the community and local workforce. Community investment covers a whole range of initiatives including: running health programmes, sponsoring schools, playgrounds or community centres, employee volunteering schemes, or signing a memorandum of understanding with communities affected by a company's impacts. However, this creates concerns around companies taking on public functions, and public spaces becoming private

Social and environmental reporting– Linked to codes of conduct, reporting on social and environmental performance, as pioneered by Shell6, is a mainstay of a company's CSR efforts. 77 of the world's 100 largest companies now produce CSR reports7. Reports purport to improve corporate accountability to stakeholders, but their value is increasingly being questioned for a number of reasons: there are no common benchmarks with which to compare the performance of different companies; the content is down to the discretion of the company, leading to allegations of spin; there are problems with verification; and the expectation that a wide variety of stakeholders would make use of the reports is proving incorrect. The readership of reports is largely restricted  to the socially responsible investment community

More productive employees: CSR initiatives have a positive impact on employee wellbeing and motivation. They can, and do, contribute to the ease of hiring quality staff, employee retention, commitment and motivation, all of which leads to increased innovation and productivity. Employees want to feel proud of where they work. An invested employee is less likely to look for a job elsewhere. More good people want to work for companies who do not take their staff for granted. More hiring choice ultimately means a better workforce. Front-line employees are also best placed to identify inefficiencies and propose improvements.

Content communities: CSR involves the way that an organisation engages and collaborates with its stakeholders, which include not only your shareholders, employees, suppliers and customers, but also the community in which you are based and operate. By getting involved in your local community and maintaining an open and honest dialogue with them, you can create and foster a credible and trusted relationship, enhancing your support over the longer term.