What Is CSR and How to Implement It?
Companies and businesses are indebted to the communities in which they operate. As a result, businesses are expected to undertake specific, actionable steps to benefit society, known as Corporate Social Responsibility (CSR).
This expectation is a tangible and economic paradigm that improves the lives of those in the immediate community and brings quantifiable benefits to the company. In addition, larger companies may be mandated by governmental authorities to implement CSR activities.
This article critically evaluates what CSR is and how you can implement it in your organization.
Facts about CSR
Corporate social responsibility (CSR) has its roots in philanthropy and charity. Although it may seem like CSR is driven by altruism, it has tangible financial and business benefits to companies. Businesses operating in living and breathing communities should contribute to them positively.
- Companies that seek to improve people’s quality of life exceed stock market expectations by 120%.
- Companies with clear CSR goals have a 50% higher chance of expanding into newer markets.
- 88% of individuals interviewed in a survey believed it is no longer acceptable for companies to have a profit-only motive.
- 90% of executives felt a collective CSR-oriented purpose enhances employee satisfaction
- 80% of survey responders believe CSR enhances customer loyalty
Companies with huge turnovers are required by authorities to implement a CSR strategy. However, smaller companies are not legally required to contribute to CSR. Nevertheless, as evidenced by the statistics above, smaller companies can implement CSR to enhance their brand image, boost employee morale, and gain a competitive edge.
Implementing CSR is often guided by the realities of the companies' communities. Businesses can make donations to other charitable organizations or take steps to bring change themselves.
Here are the most common areas in which CSR can be implemented:
- Improve the living standard of marginalized communities by making donations and improving access to utilities
- Put an environmental policy in place, and tie it with CSR activities. If the government does not mandate you to comply with rules related to reduced greenhouse emissions, you can simply begin to plant trees in the community. You may alternatively choose to reduce your energy consumption.
- Help reduce crime and corruption, and work with local law enforcement agencies to enhance community safety standards.
- Act as a social equalizer by taking steps to reduce social and income barriers
- Implement animal rights programs, and undertake activities that improve the quality of life of stray animals
The above list is only suggestive, and you can choose from various CSR activities. It is always advisable to choose CSR activities that are most pertinent to the communities in which you operate.
Regardless of the CSR activity you choose, you are bound to encounter multiple risks. As a result, all your CSR activities should be audited by third-party organizations. Most importantly, auditing eliminates inaccuracies in facts and figures and ensures better implementation of your stated CSR activities. Auditing may also help claim tax benefits and keep your ledger transparent.
External CSR audits help your company to
Manage extra-financial activities in a transparent manner
Reduce carbon footprint and enhance the sustainability of your business operations
- Improve workplace safety and ensure the protection of your employees
- Keep all your financial records verifiable and accurate
- Ensure that your CSR activities fetch the desired results for all parties involved
CSR requires minimal effort with a cloud-based solution
Succinctly put, CSR activities help small and large companies achieve various goals.
Its reporting process may seem convoluted – and that’s where turning to external assistance for CSR management helps.
Companies like kShuttle can help you manage your CSR activities and help you sustainable and profitable simultaneously. Contact us today!