Corporate social responsibility

Definition of Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is a management approach in which an organization voluntarily integrates social, environmental, and ethical aspects into its operations and relationships with stakeholders, such as employees, customers, suppliers, and local communities. In simpler terms, it's a concept that suggests every organization, beyond its own development and profit-making, can voluntarily create added value for society and contribute to the sustainable development of the environment.

The ISO 26000:2010 standard can be considered a practical guide to the principles of socially responsible business. Its guidelines can be voluntarily applied by various organizations, regardless of their ownership structure, size, type, or location.

Areas and Types of Corporate Social Responsibility

Traditionally, CSR includes four areas: environmental responsibility, philanthropic actions, ethical practices, and economic activities. The ISO 26000 standard specifies seven such areas, including:

1. Community Involvement and Development – Actions aimed at supporting and developing the communities in which the organization operates.
2. Organizational Governance – A system for managing the organization in a responsible, transparent, and ethical manner.
3. Fair Operating Practices – Actions related to conducting business ethically and fairly, both internally and in relations with external partners.
4. The Environment – Actions aimed at minimizing the negative impact of the organization's activities on the environment.
5. Consumer Issues – Activities focused on responsibility toward consumers.
6. Labor Practices – Aspects related to the treatment of employees.
7. Human Rights – Respecting and protecting human rights in the organization’s activities.

Examples of Actions Taken by Socially Responsible Organizations

A socially responsible organization may focus on actions within one of the areas mentioned above, or undertake various initiatives across different areas. Here are a few examples that may inspire you and your company:

1. Community Involvement and Development

• Supporting education and health by investing in local educational and health initiatives that improve the quality of life.
• Promoting entrepreneurship by supporting local businesses, contributing to economic growth, and job creation.
• Investing in social infrastructure (roads, schools, health facilities) through collaboration with local authorities and non-governmental organizations.
• Creating jobs and developing the skills of current and future employees.
• Developing and sharing technology.

2. Organizational Governance

• Open communication about the organizational structure, goals, and results.
• Applying ethical principles in all aspects of the organization’s activities.
• The board's responsibility for the organization's decisions and actions, taking into account the interests of all stakeholders.

3. Fair Operating Practices

• Engaging responsibly in political activities.
• Respecting property rights, including intellectual property, particularly at risk in the age of AI.
• Combating corruption by implementing anti-corruption policies and transparent management practices.
• Responsible sourcing of materials and ensuring that raw materials come from responsible sources that adhere to ethical and environmental standards.
• Ethical relationships with business partners, fair competition, and responsible supply chain management.

4. The Environment

• Responsible management of resources, energy, and water to minimize consumption.
• Reducing greenhouse gas emissions and other pollutants, and adapting to climate change.
• Protecting ecosystems through actions that safeguard biodiversity and preserve ecosystems.

5. Consumer Issues

• Ensuring the quality of products and services so that they are safe for users.
• Fair marketing and transparency of information, providing clear, truthful, and complete information about products and services to enable consumers to make informed decisions.
• Protecting consumer privacy, respecting and safeguarding customers' personal data.
• Promoting sustainable consumption, educational activities, and raising awareness among consumers.
• Fairness in customer service, providing support, and being ready to handle complaints and resolve disputes.
• Philanthropic activities that increase access to basic services.

6. Labor Practices

• Ensuring safe, healthy, and decent working conditions and social protection, in accordance with applicable laws.
• Promoting training and career development to help employees reach their full potential.
• Ensuring equal employment opportunities, combating discrimination, and promoting diversity in the workplace.
• Promoting social dialogue and volunteer activities.

7. Human Rights

• Protection against various forms of discrimination at all levels of the organization’s functioning.
• Preventing human rights violations and taking action to identify and eliminate any forms of human rights violations in the company's operations and supply chain.
• Supporting communities by engaging in activities that promote human rights in the communities where the company operates.
• Avoiding involvement in unethical ventures that violate human rights, such as not using products resulting from slavery or child labor.

What Benefits Does Implementing CSR Principles Provide?

An organization that decides to implement CSR principles can expect the following:

• Its image will be positively perceived by customers, partners, and potential employees.
• Its relationships with customers will improve, leading to increased brand loyalty.
• Employee morale, engagement, and productivity will rise.
• It will gain a competitive edge in the market and enhance its reputation.
• Relationships with investors, donors, sponsors, and other institutions will improve, becoming more stable and effective, and new business opportunities will emerge.
• Operating expenses will decrease due to lower resource consumption and reduced costs of recruiting and retaining employees.
• Legal risks associated with business activities will decrease, along with the cost of legal services for the organization.
• Innovation will increase within the team, which will feel compelled to seek new, sustainable solutions.
• It will ensure long-term stability and lasting value.

Corporate Social Responsibility – Summary

The ongoing environmental degradation and climate change have made CSR an important element of modern organizations’ development strategies. Both consumers and business partners increasingly demand that companies they collaborate with adopt a responsible approach to environmental issues.

• Informed customers expect companies to conduct transparent activities that minimize negative environmental impact, promote recycling, and reduce greenhouse gas emissions.
• For business partners, actions toward sustainable development are a testament to responsibility and a long-term perspective, which builds trust and facilitates cooperation.

Organizations that effectively integrate CSR into their development strategies gain a competitive advantage and build a future for the next generations.