It is no longer unusual to find companies investing tons of money in giving back to society. While money is one of the primary resources, employees and business owners also volunteer their time towards promoting the social good. The focus for companies in this category is social responsibility.
There are companies that engage in such activities to attract more investors, while others see beyond brand recognition, and seek to positively impact the community. Companies must prioritize corporate social responsibility to drive sustainable growth regardless of the core objective.
Understanding Corporate Social Responsibility
If you, as a business owner or employee, intend to engage in corporate social responsibility, you must understand what it entails and what the ultimate objective is. Notably, businesses are more inclined to choose corporate social responsibility initiatives that align with their values and stakeholders’ expectations. Corporate social responsibility is a business practice that measures how much an organization’s activities impact the community. When the term ‘community’ is used in this context, it also includes the environment.
There have been instances where corporate social responsibility has been confused with pro bono programs, particularly as it applies to law firms. However, there is a distinction between these two initiatives. While pro bono work involves using one’s legal skills to benefit the individuals and entities into the broader community, corporate social responsibility is targeted towards supporting the community through charity and other non-profit efforts.
How to Choose a Corporate Social Responsibility Initiative
Companies that prioritize corporate social responsibility to drive sustainable growth must consider the following factors:
Core Values
The first step in determining what initiative you would want to participate in as a company is to identify what your values are. If you are invested in preserving the environment and participating in climate change activities, organizing or participating in a tree-planting exercise would be more practical than embarking on an orphanage visit. When you have your values identified, it is easier to feed them into your policy and plans.
Engage Stakeholders
Following from the above, while it is essential to identify what matters to you as a company, you must also understand your community’s needs. This happens only when you engage with stakeholders to understand their pain points. It is a crucial part of the process because a successful corporate social responsibility initiative cannot be conceived in isolation. You are better equipped to address the major concerns when you identify them.
Determine the available resources
As a next step, it is recommended that you assess your financial and human capacity to undertake the project. If based on your assessment, you need to explore possible partnerships, then do not hesitate to do so. When you collaborate with other entities, you not only increase your capacity, but also expand your reach for better results.
Set measurable goals
Setting clear goals based on your values and priorities determined by stakeholder engagement is essential. This would enable you to track your progress and make the necessary adjustments. It is also recommended that you prepare a corporate social responsibility policy that sets out the targets and guidelines for your activities. This will enable you to monitor and report on your activities.
Corporate Social Responsibility Options for Companies
Here are a few Corporate Social Responsibility options you may consider for your next community-focused project:
Environmental-focused initiatives
This would involve projects targeted at promoting environmental sustainability. It could range from avoiding single-use plastics to participating in tree-planting exercises. Most companies that prioritize this initiative focus on reducing their carbon footprint. You can also organize a beach cleanup program and have employees help collect and properly dispose of trash littered around the beach.
Human rights-focused initiatives
This would involve committing to ethical practices and requiring that from your stakeholders, including employees and even suppliers. It includes zero tolerance for child labor, fighting against discrimination in all its forms, and ensuring that everyone is paid a decent wage for their labor, among other initiatives.
Philanthropy
This is one of the most popular CSR initiatives across the globe. Companies donate money and resources to worthy causes within their community. It could be through a trust, foundation, or even the company’s name. The beneficiaries often appreciate the donor’s commitment to improving their life.
Economic-related initiatives
This refers to the commitment of companies to ensuring that the financial decisions they make aligns with the ultimate goal of doing good. This explains why some companies invest in alternative energy sources, among other initiatives. They prioritize corporate citizenship over cost savings.
Diversity and Inclusion initiatives
This is also an option, as companies may establish inclusive hiring policies and procedures to ensure that people from different cultures, backgrounds, and identities have a platform to be their best selves. It also involves honoring significant days such as International Women’s Day, Black History Month, and International Men’s Day.
With social responsibility at the heart of a company’s operations, it is positioned to scale, attract good talent, and improve its client relationship.
