Corporate Social Responsibility

3d corporate social responsibility boxesCorporate Social Responsibility (CSR) is defined as a corporations drive to estimate their effects on the environment and their role in the well being of the citizens in their area and across the globe. It refers to a corporation that goes above and beyond what is required of them by regulators, to have a positive impact on society.

Examples of CSR

Coal and Allied

  • Operates eight community development funds.
  • Contributes millions to communities in which they operate.
  • Large amounts of their contributions go to cultural and education programs.
  • Practicing socially responsible business.

Xstrata

  • Works with communities to address environmental concerns.
  • Creates job training programs.
  • Maintains strict health and safety regulations.

Starbucks

  • Committed to making positive social contributions.
  • Works to limit their impact on the environment.
  • Creates programs in local neighborhoods to make a difference in their customers lives.

The Importance of Social Responsibility

Customer Interactions

Corporate Social ResponsibilityCorporations find it much easier to speak with customers about the good that they are doing. It gives the customers a good feeling about the company. It helps customers to feel that by giving their business to these companies that they are contributing on a greater scale to the well being of society as a whole. Customer interaction about CSR also brings awareness to the issue.

Employee Engagement

Employees are more productive when they feel good about the corporation that they are working for. They are more likely to engage in company functions both in and out of the workplace. People, as a whole, like to feel good about the work that they are doing. Knowing that their workplace is contributing to society in a positive manner gives them a sense that they are a part of something much larger and more satisfying than just bringing home a paycheck.

Positive Public Image

CSR promotes a positive public image. Donating funds to worthy causes in the corporations community not only promotes the company, but also promotes it in a positive way. Donation to schools, sports and community programs put the corporations name out there and makes it more likely that members of the community will feel good about purchasing goods or services from the company. Sports, health, fitness and cultural programs are also a great way to help the community and put the corporation in the public’s eye.

Media Coverage

When corporations are out helping the community they are more likely to be the focus of the media. This is especially true when corporations participate in community events. Getting the companies name out there is a sure fire way to increase awareness, and increase revenue. On the flip side, the media is likely to pick up on companies who are doing things that are harmful to society and to the the environment.

Helps to Cut Cost

Often times companies look at CSR as a loss of profits; however this is not always the case. Environmental corporate social responsibility can mean cutting costs. Eliminating packaging and paper waste has a big impact on the environment and is good for the corporations bottom line. Many corporations are saving money by going green. Participating in energy efficiency programs is another way that corporations can meet their CSR and cut costs in the process.

Corporate Social Procurement

Corporate social procurement refers to companies that acquires their supplies from companies that are acting as socially responsible businesses. Ethical procurement is the practice of choosing business partners who’s CSR is is being met adequately. It is important for companies to focus on working with suppliers who are meeting regulations and who have ethical business practices. There are a number of large corporation who are leading the way in CSR procurement, as well as green Procrustean.

Examples of CSR in Procurement

Walmart

  • Working with partners to increase their supply of renewable energy.
  • Responsible sourcing withing their global supply chain.
  • Verifying suppliers compliance with regulations in regards to workers and production.
  • A great example of CSR Procurement

OMRON Global

  • Evaluates potential products to ensure that supplies CSR is being met.
  • Addresses issues with suppliers when regulations are not being met.
  • Ensuring and promoting fair transactions with suppliers.
  • Works to ensure good business and social practices.

Epson

  • Conducting transparent supply activities to ensure that products are obtained ethically.
  • Committed to fulfilling their social responsibility within the supply chain.
  • Exercises high social responsibility in procurement.
  • Ensures suppliers are meeting their responsibilities regarding rules and regulations.

Why Corporate Social Procurement is Important

Human Rights

Corporations should be purchasing from suppliers whom take an ethical approach to human rights. Ensuring positive conditions for workers is essential. Fair wages and compliance with regulations is also important. By investigating suppliers commitment to human rights corporations can be sure that they are meeting their social responsibility and their ethical procurement responsibility.

The Environment

It is important that corporations are looking at the impact that their suppliers have on the environment. It doesn’t matter how much a company does to protect the environment, if they are getting their supplies or doing business with a company whom is not meeting their social responsibility to the environment. To have an overall global impact corporations need to look at the entire pictures of their corporation.

Health and Safety

Ensuring that suppliers and other partners are meeting health and safety regulations is an important part of social procurement. It is important that corporations have up to date safety standards, considerate of the heath and safety of their employees, clients and community, and maintain an adequate system to ensure the safety of all.

In today’s society it is more crucial than ever for corporations to meet their Corporate social responsibility. It creates a positive impact on the environment and the social welfare of others and allows corporations to increase revenue and paint a positive picture to the public. Corporations meeting their own responsibility is a great first step; however taking it a bit further and ensuring ethical procurement practices are met will have the greatest impact at home and around the globe. It is time for corporations to start becoming shining examples of excellent Corporate social responsibility.

Reference Links:

http://www.riotinto.com/energy/rio-tinto-coal-australia-4713.aspx

http://www.miningoilgasjobs.com.au/mining/all-you-need-to-know-about-the-mining—metals-sec/building-better-community-relationships.aspx

http://corporate.walmart.com/global-responsibility/environment-sustainability/global-responsibility-report

http://global.epson.com/SR/procurement/guideline/