We hear more and more about how important corporate social responsibility is if an organisation is to develop as it should. Even so, there are still plenty of organisations unaware of what it means to build the concept into their culture.
What is corporate social responsibility?
Corporate social responsibility is a term tied to the key principles governing how a company behaves — principles that go beyond financial returns, because they take into account the impact the organisation has environmentally and socially.
How does it show up in organisations?
Its impact shows up in key elements across three distinct areas. Governance, which covers strategy and compliance with the rules in force in each country or region. Social, which an organisation can address through respect for labour rights and through its direct or indirect effect on the community. And finally the environmental dimension, which emphasises the preservation of natural resources.
The benefits of corporate social responsibility
The importance of corporate social responsibility lies in the fact that, as well as having a positive impact on the society in which a company operates, it can bring benefits to the organisation itself. Among them:
- Building competitive advantage. The trend today shows that people feel connected and committed to brands that are “doing the right thing”, and CSR therefore delivers a clear competitive advantage.
- Cost efficiency and intelligent use of natural resources. The planet’s resources are finite, so applying the principles of the circular economy to extend a product’s useful life, or using “reduce, reuse, recycle” strategies, can bring considerable benefit — not only environmentally but in controlling the costs of developing a product or running the organisation.
- Tax and business incentives. Many governments have begun introducing tax benefits for companies that adopt sustainable processes.
- Market positioning. A good number of investors are now actively looking for companies backing more sustainable products and services. Positioning yourself as a sustainable company can therefore bring substantial benefits across the board.
CMI is the first business school in Spain specialising in sustainability and corporate social responsibility. We invite you to take a look at our master’s degree in CSR and Sustainability — click here to find out more about the programme.
Article written by Adriana González, student on the Master’s in Corporate Social Responsibility and Sustainability.
