Corporate Social Responsibility (CSR) describes the strategies companies use to ensure their operations are eco-friendly, adhere to ethical principles, and beneficial to the society. It is argued that CSR is a company’s contribution to the growth of the society. The critical areas that CSR managers focus on include the conservation of the environment, the development of the local community, and the general welfare of their employees.
Role of CSR in society
When a mega-store builds a branch in a residential area, it enhances the lives of the surrounding community. The proximity of the large store makes life convenient and reduces other costs such as fuel and time spent traveling to other destinations. However, the establishment of this venture will have an adverse impact on the small-scale businesses. Additionally, if the proposed store is established on virgin land, it significantly affects the physical environment.
The establishment, sustenance, and expansion of a corporation have considerable impacts on the environment and the surrounding community. This has forced companies to engage in non-profit ventures and socially responsible initiatives. Through these programs, the corporate entities are able to channel a section of their profits back to local societies for various reasons.
They include enhancing the living standards of their customers, improving the economy of the local community, and mitigating the impact of their operations on the environment. These strategies ensure that their businesses are sustainable.
Corporate entities mitigate the negative impacts resulting from industrialization. This is associated with the creation of awareness about the ethical principles in business operations. For example, automobiles discharging high emissions are taxed at higher rates compared to vehicles with low emissions.
This enables the owners of low emitting vehicles to invest in productive community projects. Creation of close public and customer relationships is another strategy through which the society benefits from CSR. This initiative allows firms to be perceived as members of the social system, and not as a source of employment and commodities. This enhances the peaceful co-existence and harmony between corporate entities and the society. This is an essential social asset in the development of communities.
Other initiatives include helping talented and intelligent students to pursue their education through the provision of scholarships and employment after completion of studies. Corporate entities also use CSR to disseminate technology to the local community. Some corporations have used this platform to drive conservation efforts by mitigating the impact of their environmental footprints. Examples of such initiatives are the campaigns against global warming and the management of carbon emissions.
The XYZ Company’s CSR Initiatives
The XYZ Company has initiated various CSR programs within its community. Some of these projects include the establishment of a scholarship program and the conservation of the environment. The scholarship program was established to assist needy students from poor families gain access to quality education.
The XYZ Company provides 100% funding for tuition and other personal expenses. They also support their families by providing casual employment to their parents. The firm is also engaged in the conservation of the environment through a re-afforestation campaign aimed at increasing the national forest-cover to contain the effects of global warming.
For CSR programs to be successful, they require a commitment from various stakeholders such as the political administration, corporate entities, civil societies, and the local communities. As most corporations continue to engage in CSR, the government is relieved of social burdens because these initiatives cover all sectors in the society.