Common Types of Corporate Social Responsibility Actions

CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives. There are many aspects of corporate social responsibility; whether a company decides to develop one area of CSR, or multiple, the end result is a more profitable company experiencing a higher level of employee engagement. The following is a list of common ways corporate social responsibility is implemented by organizations.

Environmental Sustainability

Areas include recycling, waste management, water management, using renewable energy sources, utilizing reusable resources, creating ‘greener’ supply chains, using digital technology instead of hard copies, developing buildings according to Leadership in Energy and Environmental Design (LEED)® standards, etc. There is a business sector dedicated to specifically to environmental sustainability consulting for businesses of any size to utilize. The highest ranked sustainability consulting firm is Ernst & Young.

With a worldwide call to Go Green environmental sustainability tops the CSR actions companies are adopting. It includes recycling, waste management, water management, using renewable energy sources, utilizing reusable resources, creating greener supply chains, less use of hardcopies, developing eco-friendly buildings etc. It also encompasses stewardship for natural resources, such as trees and wildlife. Sustainable business practices consider not only the use of resources in production, but also the assurance that those resources can be replenished for future use.

Example: MARUTI

As a responsible corporate citizen, Maruti Suzuki India Limited always believed in having the highest standards of Corporate Governance. Maruti Suzuki an automobile industry works upon global issues like climate change and greenhouse gases. Since few years this company has been strongly investing on manufacturing environmental friendly products. Maruti Suzuki is also supporting the cause of conserving and preserving natural environment.

Community Involvement

This can include raising money for local charities, supporting community volunteerism, sponsoring local events, employing people from a community, supporting a community’s economic growth, engaging in fair trade practices, etc. Starbucks is an example of a company that focuses on community involvement and engagement; since these programs began the company has seen higher profits and greater employee engagement.

The social dimension of sustainability addresses concerns such as peace and social justice. Efforts to improve education, to expand worker rights, to minimize the use of child labour, and to increase the political empowerment of women, especially in developing countries, engaging in fair trade practices etc. are few examples of community involvement practices. Infosys is an example of a company that focuses on community involvement and engagement; since these programs began the company has seen higher profits and greater employee engagement.

Example: WIPRO

The women of Wipro (WOW), council have taken various initiatives to empower women. Other than WOW, Wipro is also involved in environment sector, quality education sector and energy conservation. Its focus area is on taking educational and health care initiatives for migrated communities and environmental issues and disaster rehabilitation in rural areas.

Economic Imperatives

Companies that are adopting ethical marketing practices have a good brand recall in consumer’s mind. They have a value and respect their consumers. These companies refer to business practices that do not diminish the prospects of future persons to enjoy levels of consumption, wealth, utility, or welfare comparable to those enjoyed in the present. They do not try to manipulate or falsely advertise to potential consumers. This is important for companies that want to be viewed as ethical.

Example: TATA Consultancy Services

TCS is one of India’s largest software service company and has won the Asian CSR award for initiating community development work and implementing various programs and devoting leadership and sincerity as ongoing commitment in incorporating ethical values. Major focus of the company is on education sector. Company is working upon literacy program that cares TCS designed computer based literacy model to teach adults and this program is known as an adult literacy program. Company is also working upon environment policy and has been developing environment friendly products and services.

Ethical Marketing Practices

Companies that ethically market to consumers are placing a higher value on their customers and respecting them as people who are ends

Criticisms and concerns

Critics of CSR as well as proponents debate a number of concerns related to it. These include CSR’s relationship to the fundamental purpose and nature of business and questionable motives for engaging in CSR, including concerns about insincerity and hypocrisy.

Nature of business

Milton Friedman and others have argued that a corporation’s purpose is to maximize returns to its shareholders, and that since only people can have social responsibilities, corporations are only responsible to their shareholders and not to society as a whole. Although they accept that corporations should obey the laws of the countries within which they work, they assert that corporations have no other obligation to society. Some people perceive CSR as incongruent with the very nature and purpose of business, and indeed a hindrance to free trade.