Corporate social responsibility (CSR) : Need for the Future Generation

CSR is a concept whereby large organizations consider the interests of society b

y taking responsibility for the impact of their activities on customers, supplie
rs, employees, shareholders, communities and other stakeholders, as well as the
environment. As the world continues to analyze energy availability and the long-
term effects of climate change, businesses too are turning their attention to an
area of opportunity reduction of carbon emissions, energy conservation and supp
ly chain sustainability. CSR holds organizations to a higher moral and ethical s
tandard considering the overall interests of society in the operations of its da
y-to-day business.
The importance of CSR for your business
1. The Internet has rapidly become the tool of choice for spreading information
about companies around the world.
2. The thing every company fears most is becoming the target of a powerful singl
e-issue campaign group. So, rather than wait for it to happen, it is better to t
ake pre-emptive action in the form of environmental product development and labe
ling, or engaging in such ideas as codes of conduct and social audits.
3. We have to take cognizance of the new forces in the consumer market, where th
e consumer-citizen is metamorphosing into a citizen-consumer.
4. Cause marketing, development partnerships and environmental concerns make goo
d business sense particularly in terms of recycling materials, employee satisfac
tion and morale, building up reputational capital and as a distinctive brand mar
keting tool.
Gaining Momentum Regulatory and Social Trends
Regulatory pressures from the society and government are mounting and increasing
ly affecting businesses of all sizes, from small manufacturing organizations up
to Fortune 500 companies. Many equate CSR to the reduction of emissions of carbo
n dioxide and greenhouse gases, but the concept of CSR goes beyond the local imp
act of a business to their extended supply chain. Many companies are now managin
g global supply chains and need to adhere to a more global view of sustainabilit
y and hold themselves so that they have same regulatory and social standards acr
oss multiple geographies.
Green Business
Being green is a subset of the broader world of supply chain sustainability and
corporate social responsibility. In the purest sense, sustainability incorporate
s a multitude of supply chain considerations such as fair labor practices, energ
y and resource conservation, human rights, and community responsibility.
Carbon credit
Today Carbon credit for a company is like Carbon credits are a key component of
national and international emissions trading schemes that have been implemented
to mitigate global warming. There are also many companies that sell carbon credi
ts to commercial and individual customers who are interested in lowering their c
arbon footprint on a voluntary basis. These carbon offsetters purchase the credi
ts from an investment fund or a carbon development company that has aggregated t
he credits from individual projects.
Criticism
According to some critics CSR programs are undertaken by companies such as Briti
sh American Tobacco (BAT), the petroleum giant BP and McDonald's to distract the
public from ethical questions posed by their core operations. They argue that t
his will give commercial benefit by raising their reputation with the public or
with government. They suggest that corporations which exist solely to maximize p
rofits are unable to advance the interests of society as a whole.