By Rachel Cohen
A common confusion can occur with corporate social responsibility (CSR) and corporate sustainability. Corporate sustainability focuses on “growth and profitability through intentional business practices in three areas of society.” CSR is taking corporate sustainability a step further to participate in practices regularly to support corporate sustainability.
Corporate social responsibility has existed since 1953 when economist Howard Bowen coined the term in his publication Social Responsibilities of the Businessman. Since then, Corporate Social Responsibility (CSR) has taken on a life of its own. There are various types of CSR ranging from focuses on the environment to diversity, equity, and inclusion (DEI).
What is Corporate Social Responsibility?
Today, the standard definition of CSR is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public. Though the definition can be broad, companies will spell out directly how they will be upholding CSR. Typically, this is seen when a company will list out the company’s values which will mention topics such as environmental sustainability, sustainability efforts, and how their business objectives can relate.
Some values may include reducing a carbon footprint, economic sustainability, limiting fossil fuels, or helping local communities. These values will shape how a company will participate in corporate social responsibility.
Examples of Corporate Sustainability
Rolex has partnered with various environmental organizations that work to protect the environment. Other companies like LEGO go beyond just the environment and look at other social issues such as workplace equality and local community engagement. Having values that reflect what sustainable conscious consumers want will lead to sustainable business.
Why participate in Corporate Social Responsibility?
Consumers may not realize the power they have as an individual, but CSR is a direct result of consumer influence. As social media has grown into its own power, the social campaigns that have occurred through sites have helped move companies to be more socially responsible. It has become easier to organize boycotts, and petitions and spread valuable information about business practices, both good and bad.
Corporate Sustainability Puts The Customer First
In a company’s business strategy, the customer is always at the center, which means to be successful the company needs to listen to them. When customers demand for a company to think about their carbon footprint, sustainable practices, and even human rights, it would be harmful to businesses to ignore that. Thus, by being a company that listens to its consumers, it will create a positive impression of the company and continue to attract and retain customers.
Corporate Sustainability To Attract and Retain Employees
Another reason for participating in corporate social responsibility is that it impacts on the company’s ability to attract and retain employees. Just like consumers, employees have a lot of power to help create change. If a company is not practicing good general or sustainable practices it can be difficult to hold onto and/or attract new talent.
According to a study conducted by Deloitte, 49% of Gen Zers rely on their personal ethics to determine the type of work and companies they would prefer to join. Ignoring the values of possible talent can lead to a struggle to find employees and retain them, causing financial stress for the company.
Corporate Sustainability For Future Generations
A third reason to participate in corporate social responsibility is the effects it will have on future generations. We are living in a time of extreme climate change and irreversible damage. It is no secret that everyone from an individual level to a corporate level needs to take action.
Having large corporations with a corporate sustainability plan can help create a difference for future generations. By using their power and money for good, they could help the world. To understand further about why a company should choose to practice CSR check out this blog on the ICSD website, where Harry Cooper delves deeper into the advantages of sustainability practices.
Some of the largest companies in the world have dedicated themselves to incorporating sustainable development goals. This is a great example of how a company can participate in corporate social responsibility.
B Certified Corporations
One of the easiest ways to know which companies are working towards corporate sustainability or corporate social responsibility is by looking at B Lab. B Lab is an organization that works to support companies to be able to improve the social and environmental impacts of their work. Some of this support can come through impact assessments, self-assessments to compare a company’s work to the UN goals, and programs to help corporations become B certified.
To become a B certified organization, an organization must be reviewed by B Lab’s Standards Advisory Council. This council is “an independent, global, multi-stakeholder group with specific expertise in responsible and sustainable business.” This advisory council offers continuous feedback and adjustment to the standards.
B Certified “Patagonia”
One of the most famous B certified corporations is Patagonia. The company supports a variety of organizations that are working to curb the impacts of climate change, as well as their own efforts.
One of these programs is the environmental responsibility program. Through the program, Patagonia has reached 100% renewable energy in their buildings, participated in fair labor practices, and even use 88% preferred materials.
Patagonia goes even beyond the environment to help make a change. One of their social programs includes Global Sports Activist. The sponsored athlete works to create social and environmental change in their community. For example, Ramón Navarro a surfer from Chile, organized and led community opposition to a proposed sewage pipeline. By working with influential figures, Patagonia is able to support local causes they may not have before.
International organizations are not the only companies that can make a difference in the world. Lesser known or smaller organizations are able to participate in this corporate sustainability strategy as well, such as Zordan a luxury designer brand that prides itself on creating products that are attractive and sustainable for people and the environment.
The company is working to become carbon-free and even reduce its carbon footprint in more untraditional ways. Their current landing page is very simple to eliminate any extra energy that is needed to complete browsing.
Interfaith Organisations For Corporate Sustainability
Secular or non-religious organizations are not the only organizations that can be focusing on corporate sustainability. The organization Interfaith Center on Corporate Responsibility (ICCR) is an organization working on this area.
ICCR is working to help their shareholders look beyond their bottom line and analyze their actions to be aware of the well-being of their stakeholders including their communities and employees. They are able to do this through various projects in the areas of food justice, climate change, human rights, and health.
Boycotts For Corporate Sustainability
The number one way for consumers to participate in CSR is through consumer boycotts. A consumer boycott is when consumers stop buying particular items or buying at large from a company.
Many companies have experienced this including Goya, Amazon, and Coca-Cola. The consumer has an extreme amount of power and withholding their money can greatly influence a company.
Petitions For Corporate Sustainability
Another way consumers can participate in CSR is through singing petitions. As mentioned before, social media holds a lot of power today. By banning together on social media and spreading petitions that call out unsafe, environmentally harmful practices or violations of human rights by companies, change can occur. Companies that ignore their consumer’s wants, and values will not last that long in today’s world.
The Future of Corporate Social Responsibility
When companies choose to create a business model and strategy that will incorporate sustainability we will be better off for future generations. We are reaching a point where over 22 billion tons of greenhouse gas emissions are being emitted into the atmosphere in a year. These irreversible actions will have social and environmental impacts that we will soon see.
Continuing to pressure companies to have sustainable practices, and use their wealth for bettering communities can hopefully reverse or slow down some of the damage occurring to the earth. There is no one answer for how much money it will take to reduce climate change, but an estimate is over $130 billion dollars. Many of the companies mentioned have billions that they can use to be part of the solution.
Corporate Sustainability & Religion
Corporate Responsibility is a book published in 2018 that features a chapter on how Faith-Based Organizations (FBOs) can increase corporate sustainability through their “religious capital.” Positive progress is reported: “Several businesses which at one time were purely motivated by profit margins, now, inspired by FBOs, integrate in their business sustainability by means of, for example, environmental management standards and codes of conduct.” When we bring in a religious perspective, people remember that life is about more than just making money, it’s about making a positive difference.
The summary of this chapter concludes: “Since the 1970s to the present, it has been noticed that religious organizations’ business models and social networks have played critical roles in managing and implementing sustainable actions of individuals and organizations.” When religious organizations prioritize sustainable business practices, everyone takes notice. May we be blessed to see more businesses integrating their religion and corporate sustainability to inspire us all and change the world.
* Featured image source
