What is Corporate Social Responsibility (CSR) and Sustainable Business?A Definition of CSRCorporate Social Responsibility (CSR), Corporate Responsibility (CR) or Sustainable Business are commonly heard, but rarely understood, phrases. So what does it all mean?

Beyond the Buzz WordsCSR is the process of assessing an organization’s impact on society and evaluating their responsibilities. CSR begins with an assessment of a business and their:

1. Customers2. Suppliers3. Environment4. Communities5. Employees

The Power of CSRRead our short guide on the benefits of CSR.

What does a CSR Policy Include?Many organizations have a CSR Policy, which defines areas of concern and initiatives to improve relations with the people and environments affected by business operations. CSR policies often dictate a system for monitoring responsible performance. Read more about Simply CSR's approach to developing CSR policies.

More than Compliance

Successful CSR initiatives take organizations beyond compliance with legislation and leads them to honour ethical values and respect people, communities and the natural environment. CSR is sustainable - involving activities that your organization can maintain without adversely affecting your business goals.

More than Being Green

CSR is about more than environmental responsibility or having a recycling policy. CSR is about considering the whole picture, from your internal processes to your clients, taking in every step that your business takes during day-to-day operations.

CSR is...

A long-term approach to business that addresses the needs of communities, people and their employers. CSR provides frameworks for successful enterprise that is harmonious with its surroundings. CSR is an opportunity to generate honest, authentic good-news stories that a business and its community can be proud of.

CSR must be sustainable - remaining a fundamental part of your business regardless of changing fortunes.

The Benefits of Corporate Social Responsibility“88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society.”

- Better Business Journey, UK Small Business Consortium

Why do we need CSR?Consumers increasingly don't accept unethical business practices or organizations who act irresponsibly. Advances in social media (giving everyone a voice) mean that negative or destructive practices quickly fuel conversations online. Organizations are accountable for their actions like never before.

The Business Benefits of CSRCSR should not be viewed as a drain on resources, because carefully implemented CSR policies can help your organization:

1. Win new business

2. Increase customer retention

3. Develop and enhance relationships with customers, suppliers and networks

4. Attract, retain and maintain a happy workforce and be an Employer of Choice

5. Save money on energy and operating costs and manage risk

6. Differentiate yourself from your competitors

7. Generate innovation and learning and enhance your influence

8. Improve your business reputation and standing

9. Provide access to investment and funding opportunities

10. Generate positive publicity and media opportunities due to media interest in ethical

business activities

11. A good reputation makes it easier to recruit employees.

12. Employees may stay longer, reducing the costs and disruption of recruitment and

retraining.

13. Employees are better motivated and more productive.

14. CSR helps ensure you comply with regulatory requirements.

15. Activities such as involvement with the local community are ideal opportunities to

generate positive press coverage.

16. Good relationships with local authorities make doing business easier. See work with the

local community.

17. Understanding the wider impact of your business can help you develop new products and

services.

18. CSR can make you more competitive and reduces the risk of sudden damage to your

reputation (and sales). Investors recognize this and are more willing to finance you.

What is Corporate Social Responsibility?Definition of Corporate Social ResponsibilityWhat CSR basically means is that a business does more for the wellbeing of others than required in an economical (make a profit) and legal (obey the law) sense.

Different types of CSR Environmental CSR: focuses on eco-issues such as climate change. Community based CSR: businesses work with other organizations to improve the quality of

life of the people in the local community. HR based CSR: projects that improve the wellbeing of the staff. Philanthropy: businesses donate money to a good cause, usually through a charity partner.

CSR criticsAlthough most companies in the world today agree that corporate social responsibility is part of daily business practice, this idea is not shared by everyone. This is the so-called business to business approach.

Advantages of Corporate Social Responsibility5 reasons why should you get involved in CSRIn today’s digital, fast speed world, each business, small or big, needs to have a CSR program in place. If CSR is not yet part of your daily business practice, you must act fast. Or else you’ll loose the trust of the people who are important to your business.

Believe it or not but the expectations of your staff, customers and the wider community have changed. You are no longer in control. They are.

So why CSR?1. Satisfied employees.Employees want to feel proud of the organization they work for. An employee with a positive attitude towards the company, is less likely to look for a job elsewhere. It is also likely that you will receive more job applications because people want to work for you.

More choice means a better workforce. Because of the high positive impact of CSR on employee wellbeing and motivation, the role of HR in managing CSR projects is significant.

2. Satisfied customersResearch shows that a strong record of CSR improves customers’ attitude towards the company. If a customer likes the company, he or she will buy more products or services and will be less willing to change to another brand.

Relevant research: IBM study ‘Attaining Sustainable Growth through Corporate Social Responsibility’: The

majority of business executives believes that CSR activities are giving their firms competitive advantage, primarily due to favorable responses from consumers.

Better Business Journey, UK Small Business Consortium: “88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society.”

3. Positive PRCSR provides the opportunity to share positive stories online and through traditional media. Companies no longer have to waste money on expensive advertising campaigns. Instead they generate free publicity and benefit from worth of mouth marketing.

4. Costs reductionsYes, you read this correctly. A CSR program doesn’t have to cost money. On the contrary. If conducted properly a company can reduce costs through CSR.

Companies reduce costs by: More efficient staff hire and retention Implementing energy savings programs Managing potential risks and liabilities more effectively Less investment in traditional advertising

5. More business opportunitiesA CSR program requires an open, outside oriented approach. The business must be in a constant dialogue with customers, suppliers and other parties that affect the organization. Because of continuous interaction with other parties, your business will be the first to know about new business opportunities.

6. Long term future for your businessCSR is not something for the short term. It’s all about achieving long term results and business continuity. Large businesses refer to: “shaping a more sustainable society” (Vodafone 2010 report): “Deliver a sustainable society in which business and its stakeholders can prosper in the long term”