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What is Corporate social responsibility (CSR)?
Corporate social responsibility (CSR) is a self-regulating business model that helps a company to be socially accountable. By practising corporate social responsibility, companies can be conscious of the impact they are having on economic, social, and environmental factors.
Engaging in CSR means that a company is operating in ways that enhance society and the environment.
Understanding CSR
Corporate social responsibility is a broad concept that can take many forms depending on the company and industry.
CSR activities can help build a stronger bond between employees and corporations, and help both employees and employers feel more connected.
For a company to be socially responsible, it first needs to be accountable to itself and its shareholders. Often, companies that adopt CSR programmes have grown their business to the point where they can give back to society. Thus, CSR is typically a strategy that's implemented by large corporations.
Why CSR?
Many companies view CSR as an integral part of their brand image, believing that customers will be more likely to do business with brands that they perceive to be more ethical. Some companies are also motivated to engage in CSR due to their personal convictions.
Impact of CSR
The movement toward CSR has had an impact in several domains. Many companies have taken steps to improve the environmental sustainability of their operations, through various measures. In managing supply chains, efforts have also been taken to eliminate reliance on unethical labour practices.
Corporate social initiatives
There are six types of corporate social initiatives:
1. Corporate philanthropy: Donations to charity via a corporate foundation
2. Community volunteering: Company-organised volunteer activities.
3. Socially-responsible business practices: Producing ethical products.
4. Cause promotions and activism: Company-funded advocacy campaigns.
5. Cause-based marketing: Donations to charity based on sales.
6. Corporate social marketing: Company-funded behaviour-change campaigns
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