What Is Corporate Social Responsibility?
Governance and culture can make or break a business. Setting aside financial gain or, at a bare minimum, viability, a business’s culture and mode of discerning acceptable action determines its impact on employees, customers, and its community. Corporate social responsibility (CSR) goes beyond laws, rules, and regulations imposed by external authorities. At its core, CSR refers to a business’s self-imposed ethics and modes of interaction with the environment, economy, and employees.
Why Is Corporate Social Responsibility Important?
With the rise of the internet catalyzing the information age, CSR is no longer just a nice thing if you have it. Companies that operate unethically or in a manner that disrupts public equilibrium are subject to more intense scrutiny and negative publicity via social networks and media.
Noted professor and researcher, Stefanie Hiss, maps out CSR with three focuses: Internal Responsibilities, Middle Responsibilities, and External Responsibilities
Internal responsibilities refer to all of the company’s internal processes when it comes to corporate strategy, decision-making, and legal compliance (sans loopholes).
Middle responsibilities are often the subject of the greatest scrutiny. These include labor conditions, environmental impact, supply chain management, and others.
External Responsibilities refer to the ways in which corporate presences interact directly with external organizations, typically with altruistic motives. This includes charitable contributions and corporate sponsorship.
If you are unsure as to the “how” of implementing a level of CSR in your business, PayPal is a great example of how a corporation can do good intentionally. Through their PayPal giving fund, they allow nonprofits to process transactions without fees, plus they add an extra 1% on top of donations during the holidays. In the words of PayPal executive Sean Milliken, ““People want to do business with companies that are aligned with a cause. Giving back, contributing to society, [and] being a good corporate citizen is not only the right thing to do – it’s good for business”.
How you run your business matters. It matters to your employees. It matters to your customers. And no matter how small, it matters to the world. If you want to learn more about CSR or have any questions regarding your business, chat with our team at NTG Staffing today! We would love to start a conversation with you and learn how we can help your business thrive.