The Sustainable Office Toolkit
 

Module 7: Corporate Social Responsibility

Overview

Although not a completely new direction for business, Corporate Social Responsibility (CSR) has become an increasingly important part of today’s business environment. A widely quoted definition by the World Business Council for Sustainable Development states that “Corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” (CSR: Meeting Changing Expectations, 1999). Corporate Social Responsibility, also called Business Social Responsibility, or Responsible Business, is already a well-established field of practice in Europe, Canada, and among large US companies. A CSR program can be developed to provide for a wide range of actions demonstrating dedication to sustainable development for companies ranging from large multinational manufacturers to small offices.

The need for a CSR program

Corporate social responsibility programs are not only beneficial to the sustainable development of the community, the economy, and the environment; they also benefit the company that implements them. One main reason for pursuing a CSR program is that, simply put, CSR is good for both business and the community—a classic win-win opportunity. The benefits of CSR include the following:

  • Increased financial performance. Companies engaged in CSR strategies tend to be more profitable as their involvement in the community at large reveals more opportunities and produces a more-effective use of resources.
  • Improved image to investors. Investors today increasingly include sustainability and corporate social responsibility as factors when choosing investments, thus providing better access to funds for expansions and acquisitions.
  • Increased employee commitment. CSR can lead to higher employee morale, retention, and commitment.
  • Improved stakeholder relations. CSR programs document improvements and performance for stakeholders, leading to positive engagement and decreased likelihood of hostile relations with, and litigation by, stakeholders.
  • Enhanced branding. Improved image gained by a responsible and sustainable company can lead to increased business from socially minded customers.

The issues to be addressed in a CSR program

Corporate social responsibility covers a broad range of issues facing today’s corporations. Depending on your corporation’s scope of operations and sector, some areas of CSR may be more relevant than others. Because of these differences, an entire section of this module is dedicated to the possible issues that could be addressed for action. Broad issues relevant to a CSR program include the following:

  • Environment
  • Human rights
  • Workforce/labor relations
  • Community involvement
  • Ethics/anti-corruption
  • Strategic vision

CSR Works

A simple commitment to Corporate Social Responsibility can eventually lead to increased success for business large and small, as many have already found. Here are a few examples of successful CSR programs in small business, for more short examples see the Case Studies or links to full examples in the References section:

  • Company: H Marcel Guest, a British paint manufacturer.
  • Projects: Focus on education, environment, and community with projects including donating supplies to local community projects, creating a nature reserve in the area to provide both a natural and educational resource, and providing staff for training programs in local schools.
  • Results: HMG has been recognized as a good member of the community and has gained a customer base that is concerned with responsibility as well as a number of environmental awards.
  • Source: http://www.article13.com/csr/CBI_csrcasestudies.asp
  • Company: SJ Berwin, a London-based law firm with operations throughout Europe.
  • Projects: After working with a carbon auditing company, SJ Berwin decided to become a carbon-neutral company. They started by purchasing carbon offsets and later included a number of measures to reduce the company’s environmental impact when moving into new office space.
  • Results: SJ Berwin’s dedication to carbon neutrality has led to improved recruiting of staff that keeps the company competitive, also the reduction in environmental impact has led to reduced operating costs for the office.
  • Source: http://www.article13.com/csr/CBI_csrcasestudies.asp