What is Corporate Social Responsibility?

Corporate social responsibility (CSR) refers to business practices involving initiatives that
benefit society. A business's CSR can encompass a wide variety of tactics, from giving
away a portion of a company's proceeds to charity, to implementing "greener" business
operations.
There are a few broad categories of social responsibility that many of today's businesses are
practicing:
1. Environmental efforts: One primary focus of corporate social responsibility is

the environment. Businesses regardless of size have a large carbon footprint. Any
steps they can take to reduce those footprints are considered both good for the
company and society as a whole.
2. Philanthropy: Businesses also practice social responsibility by donating to national
and local charities. Businesses have a lot of resources that can benefit charities and
local community programs.
3. Ethical labor practices: By treating employees fairly and ethically, companies can

also demonstrate their corporate social responsibility. This is especially true of

businesses that operate in international locations with labor laws that differ from those
in the United States.
4. Volunteering: Attending volunteer events says a lot about a company's sincerity. By

doing good deeds without expecting anything in return, companies are able to express
their concern for specific issues and support for certain organizations.

Why CSR matters

Liz Maw, CEO of nonprofit organization Net Impact, noted that CSR is becoming more
mainstream as forward-thinking companies embed sustainability into the core of their
business operations to create shared value for business and society.
"Sustainability isn't just important for people and the planet, but also is vital for business
success," said Maw, whose company connects students and professionals who want to use
business skills to do social good. "Communities are grappling with problems that are global
in scope and structurally multifaceted Ebola, persistent poverty, climate change. The
business case for engaging in corporate social responsibility is clear and unmistakable."
"More practically, [CSR] often represents the policies, practices and initiatives a company
commits to in order to govern themselves with honesty and transparency and have a positive
impact on social and environmental wellbeing," added Susan Hunt Stevens, founder and CEO
of employee engagement platform WeSpire.
As consumers' awareness about global social issues continues to grow, so does the
importance these customers place on CSR when choosing where to shop. But consumers
aren't the only ones who are drawn to businesses that give back. Susan Cooney, founder of
crowdfunding philanthropy platform Givelocity, said that a company's CSR strategy is a big
factor in where today's top talent chooses to work.

"The next generation of employees is seeking out employers that are focused on the triple
bottom line: people, planet and revenue," Cooney told Business News Daily. "Coming out of
the recession, corporate revenue has been getting stronger. Companies are encouraged to put
that increased profit into programs that give back."[See Related Story: Social
Responsibility Tips for Your Business]

Examples of corporate social responsibility

While many companies now practice some form of social responsibility, some are making it a
core of their operations.
From Google to Ben & Jerrys, some of the worlds largest and most profitable corporations
have integrated measures to promote good corporate citizenship into their mission statements
and business models. And it is paying off.
The Whos Who Is What. It is no secret that some of the worlds largest and most successful
corporations are incorporating good corporate citizenship into their culture. But how are they
doing it? How are they benefiting? And how can you follow their leads? Just look at these
three great examples of corporate social responsibility.
1. Google. For many people, their first exposure to a corporation working for good was
related to Google. The search giant has made aggressive moves on multiple fronts toward
good citizenship, but it is clear that, as one of the worlds largest corporations, every single
effort is paying off. For example, Google Green is a corporate effort to use resources
efficiently and support renewable power. But recycling and turning off the lights does more
for Google than lower costs. Investments in these efforts have real-world effects on the
bottom line. Google has seen an overall drop in power requirements for their data centers by
an average of 50 percent. These savings can then be redirected to other areas of the business
or to investors.
You dont have to be a Google-size company to benefit from being green. Installing energyefficient lights, allowing telecommuting, and recycling will not only improve your world, it
will result in quantifiable cost savings that you can see in the bottom line.
2. Xerox. The printing giant has multiple programs for donating and supporting programs for
social responsibility. Their Community Involvement Program encourages it by directly
involving employees. Since 1974, more than half a million Xerox employees have
participated in the program. In 2013 alone, Xerox earmarked more than $1.3 million to
facilitate 13,000 employees to participate in community-focused causes. The return for Xerox
comes not only in community recognition, but also in the commitment employees feel when
causes they care for are supported by their employers.
Maybe your firm doesnt have 13,000 employees, but that doesnt mean you cant benefit
from this method. By incorporating a limited number of billable hours per year for volunteer
efforts, you will enjoy the dual effects of helping your community as well as increasing your
employee morale and therefore productivity. Perhaps organizing large group activities for
charities such as Habitat for Humanity can bring your group together, and you can spread
your name with inexpensive event T-shirts.

3. Target. Very often the idea of good corporate citizens can seem like a concept that is
completely removed from our day-to-day realities. Sure, mega-corporations can have
volunteer programs or philanthropic arms that focus on big-picture issues, but that seems so
highbrow. If that is how you think, then take a look at Target. While many shoppers may
think of it as just another big-box retailer, Target is more than just a place to buy tires and
milk.
Since 1946, Target has been committing more and more effort and assets toward local and
environmental support for the communities in which they have stores. Over the past several
years, the companys effortsfrom growing sustainable practices to educational grants
have amounted to 5 percent of its profit going to local communities. Thats $4 million each
week! In the area of education alone, Target has donated more than $875 million since 2010.
Can your company afford to give $4 million a week to good causes? Most likely the answer
is no, but the good news is that you dont have to. By supporting any good cause in your
community, you provide two important factors that pay dividends. You have employees who
are proud to work for you and clients who are proud to be associated with you. The financial
return of either can be many orders of magnitude.
Bring It Home. Many of these programs, such as allotted time for volunteer work and
community donations (which Autodesk does with its Autodesk Foundation) can begin as
small-scale efforts.
The cost to the bottom line will quickly be reimbursed when you see your socially active
employees producing more and your supported community engaging with your firm. For the
survival of this planet, its crucial for people to do their part to improve the world. The bonus
is that they will get so much in return.
Ben and Jerry's, for instance, uses only fair trade ingredients and has developed a
sustainability program for dairy farms in its home state of Vermont. Starbucks has created its
C.A.F.E. Practices guidelines, which are designed to ensure the company sources sustainably
grown and processed coffee by evaluating the economic, social and environmental aspects of
coffee production. Tom's Shoes, another notable example of a company with CSR at its
core, donates one pair of shoes to a child in need for every pair a customer purchases.
However, Stevens said companies need to really understand what their core social purpose is
and how that aligns with their stated mission, to create a cohesive CSR strategy.
For example, Stevens said that Kashi, a Kellogg's brand, wants to increase organic farming
and is one of the few certified organic cereals. Since only 1 percent of U.S. farmland is
actually organic, the breakfast brand worked with Quality Insurance International to help
certify new organic farmers across the nation.

Practicing what you preach

Undertaking socially responsible initiatives is truly a win-win situation. Not only will your
company appeal to socially conscious consumers and employees, but you'll also make a real
difference in the world. Keep in mind that in CSR, transparency and honesty about what
you're doing are paramount to earning the public's trust, Givelocity's Cooney said.

"If decisions [about social responsibility] are made behind closed doors, people will wonder
if there are strings attached, and if the donations are really going where they say," Cooney
said. "Engage your employees [and consumers] in giving back. Let them feel like they have a
voice."
Stevens, of WeSpire, reminded business owners that the corporate world has more power than
many realize, and using that power to improve the world can bring people of all backgrounds,
ages and interests together.
"Given their power and sheer size, corporations can solve big social problems and have a
huge impact," she said.