Definition of CSR
CSR, also known as Corporate Social Responsibility, is the way in which organizations can incorporate social issues into their operations. The purpose is to make a positive impact with specific or all stakeholders. Moreover, it refers to the principles and identity the company identifies itself with.
Breaking Down CSR
A deeper and richer literature surrounding corporate responsibility started to perk interest and become mainstream in the last years, with a global shift in the way customers perceive brands. The latter, in fact, are more and more interested on what a company does in order to face social and ethical issues. it’s not only a matter of abiding the law and complying with regulations. CEOs and managers are expected to be responsible, conscious and respectful of the environment as well as the community they operate on and so on. Moreover, they need to work out policies and detailed programs that highlight their principles and how they intend to address global problems and make an impact.
A lot of experts traced the beginning of modern CSR back to when McDonald’s first suffered harsh criticism for its lack of transparency. As a matter of fact, news, movies and books started to attack the fast food chain. From that moment on, McDonalds paved the way for how fast food conduct their business and how they communicate with their stakeholders.
More recently, it was UBER who had to react to a series of hard recriminations. Regardless of the legal and anti-competitive factors that harassed the company in a lot of countries, it’s not secret that the lack of a clear corporate responsibility policy has represented a big problem, with customers suing drivers for sexual harassment and the management trying to minimize it.
Statistics from different studies show that 90% of all customers expect companies to address social and environmental issues. Moreover, 84% of consumers globally say that they buy responsible products when possible [For more statistics about CSR, give a look at our blog article CSR, what is the impact on consumers?].
Above all, CSR mostly consists of these activities:
- Cause promotion
- Corporate Social Marketing
- Cause –related marketing
- Corporate Philanthropy
- Corporate volunteering
- Social responsible business practices
What is the impact on consumers?
How to measure the impact?
How social media helps to push Corporate Social Responsibility activities in companies
The future of Corporate Social Responsibility practices
Kotler, P. & Lee, N. (2005). Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause