Corporate Social Responsibility is...

...a concept whereby companies integrate social and environmental concerns in their business operations and in
their interaction with their stakeholders on a voluntary basis
CSR describes the principle that companies can and should make a positive contribution to society. CSR is the practice of
managing the social, environmental and economic impacts of the company, being responsive to 'stakeholders' (those who
are affected by a business operation) and behaving according to a set of values which are not codified in law. In practice the
term can refer to a wide range of actions that companies may take, from donating to charity to reducing carbon emissions.
CSR initiatives can be approached from multiple perspectives, depending on your operations:
Environmental focusing on ecological concerns; from recycling to improving your organisation's entire carbon
footprint
Community-based supporting local community projects to improve lives of the people local to your
organisation; financially or through volunteer programmes
Internationally focusing on issues such as fair trade, sustainability, working conditions, child labour and
human rights
Workplace-based focusing on improving the rights and well-being of your staff; reviewing issues including
remuneration, recruitment, induction, health and safety, whistle-blowing, working conditions, diversity and training
Community investment Many companies develop community projects in the vicinity of their sites, to offset negative
impacts or 'give back' to the community and local workforce. Community investment covers a whole range of initiatives
including: running health programmes, sponsoring schools, playgrounds or community centres, employee volunteering
schemes, or signing a memorandum of understanding with communities affected by a company's impacts. However, this
creates concerns around companies taking on public functions, and public spaces becoming private
Social and environmental reporting Linked to codes of conduct, reporting on social and environmental performance, as
pioneered by Shell6, is a mainstay of a company's CSR efforts. 77 of the world's 100 largest companies now produce CSR
reports7. Reports purport to improve corporate accountability to stakeholders, but their value is increasingly being
questioned for a number of reasons: there are no common benchmarks with which to compare the performance of different
companies; the content is down to the discretion of the company, leading to allegations of spin; there are problems with
verification; and the expectation that a wide variety of stakeholders would make use of the reports is proving incorrect. The
readership of reports is largely restricted to the socially responsible investment community

More productive employees: CSR initiatives have a positive impact on employee wellbeing and motivation. They
can, and do, contribute to the ease of hiring quality staff, employee retention, commitment and motivation, all of which
leads to increased innovation and productivity. Employees want to feel proud of where they work. An invested
employee is less likely to look for a job elsewhere. More good people want to work for companies who do not take
their staff for granted. More hiring choice ultimately means a better workforce. Front-line employees are also best
placed to identify inefficiencies and propose improvements.
Content communities: CSR involves the way that an organisation engages and collaborates with its stakeholders,
which include not only your shareholders, employees, suppliers and customers, but also the community in which you
are based and operate. By getting involved in your local community and maintaining an open and honest dialogue
with them, you can create and foster a credible and trusted relationship, enhancing your support over the longer term.