Corporate social responsibility introduction:-
Corporate social responsibility (CSR), also corporate citizenship, is a business model for small, medium, large, international corporations for the enhancement of social growth and to help the environment. Corporate social responsibility helps upgrade society as such economically, socially, and environmentally.
Corporate Social responsibility is categorized into four aspects of development for the business as well as the society. These include; a) environmental impacts ,b) ethical responsibilities ,c) philanthropic endeavors and d) financial responsibilities.
A corporation can invest into CSR. It helps the company being held accountable to itself, shareholders and most importantly the society. A CSR helps the corporations to give back to the society and can improve their brand image which helps people perceive about them in a good way.
Types of corporate social responsibility:-
There are four types of aspects in corporate social responsibility which a company can choose to engage separately, or can be involved in all fours.
1) Environmental responsibility-
It is a pillar of corporate social responsibility held up to preserve the world;our Earth. Our environment is a complex system that consists of everything around us; the air we breathe, the water we drink and our homes. This environmental system is constantly changing over the years which have caused harm to the environment and thus has affected the society.
i. Air pollution. It is one of the many problems which is severe. It is caused by factories, vehicles and even by some biochemical reactions(incomplete combustion of Carbon).
ii. Water pollution. Discharging of waste water by factories and throwing the garbage in water bodies ,etc. has caused our water to pollute and the life of water organisms has affected.Most water has become unfit for our consumption.
iii. Food and Water Shortages. Due to change in climate; Rise in heat, our agricultural system is likely to be highly impacted. Countries often can suffer from droughts, drying up water bodies and comprising the crops.
iv. Waste management. Not properly managing the waste disposal such as plastic, can degrade our environment.
v. Biodiversity loss. The flora and fauna is threatened by human habitation. There is not much land left for their dwelling. Some of the species have become extinct.
Corporate social responsibility often pursue
these measures :
-Reduction of air pollution. Siting of factories after proper Environmental Impact Assessment Studies. Use appropriate materials; biological filters and bio-scrubbers. Planting as much trees as deforested. Reduction of pollution at source. Using non-conventional sources of energy. Using low sulfur coal in industries.
-Reduction of water pollution. Planting trees reduces pollution by sediments and also prevent soil erosion. Separate drainage of waste sewage and rainwater should be provided.
-Recycling goods and manufacturing materials throughout the processes.
-Reuse of the materials and promoting it to the society.
-Choosing the goods distribution method consciously that they don't have or very least impact on pollution.
-Producing those product lines that enhance their values.
2) Ethical responsibility-
It is a pillar of corporate social responsibility to act fair and in ethical manners.
-Treatment of customers regardless of their money, status, age, race, culture or sexual orientation.
-Proper and positive treatment of the employees. Giving them favorable pay and bonus considering every individual regardless of their personal differences.
-Honest about how the companies' work to the investors in a timely manner.
3) Philanthropic responsibility-
It is a pillar of corporate social responsibility ; how a company works and contributes to the society.
-If companies donates profits to a charity.
-If companies hold fundraising events.
-If a company supports employees' philanthropic endeavors.
-How company buys and supplies.
4) Financial responsibility-
It is a pillar of corporate social responsibility ; how a company plans to do all above three aspects through financial investment.
-Making new research and development for new products.
-Recruiting skilled and trained individuals in different categories.
-Transparent financial reporting of company's budget and expenses.
Benefits of Corporate social responsibility:-
- Brand recognition. People tend to consider a company more if the is giving the society back for something they received from the love and trust of the public.
- Investor relations. Investors should know the perks of the companies, how they handle their resources, their consumption, their infrastructure and budget and how much they would yield.
- Employees engagement
- Risk mitigation
Companies that follow CSR:-
2) Home Depot
3) General Motors
Corporate social responsibility conclusion:-
CSR aims to make the world a better place beyond just their profit. Improving the society as they can environmentally, economically, socially, morally.
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