What is Corporate Social Responsibility (CSR)

and Sustainable Business?

A Definition of CSR
Corporate Social Responsibility (CSR), Corporate Responsibility (CR) or
Sustainable Business are commonly heard, but rarely understood,
phrases. So what does it all mean?

Beyond the Buzz Words

CSR is the process of assessing an organizations impact on society and

evaluating their responsibilities. CSR begins with an assessment of a
business and their:
1.
2.
3.
4.
5.

Customers
Suppliers
Environment
Communities
Employees

The Power of CSR

Read our short guide on the benefits of CSR.

What does a CSR Policy Include?

Many organizations have a CSR Policy, which defines areas of concern

and initiatives to improve relations with the people and environments
affected by business operations. CSR policies often dictate a system for
monitoring responsible performance. Read more about Simply CSR's
approach to developing CSR policies.
More than Compliance
Successful CSR initiatives take organizations beyond compliance with
legislation and leads them to honour ethical values and respect people,
communities and the natural environment. CSR is sustainable involving activities that your organization can maintain without
adversely affecting your business goals.
More than Being Green
CSR is about more than environmental responsibility or having a
recycling policy. CSR is about considering the whole picture, from your
internal processes to your clients, taking in every step that your
business takes during day-to-day operations.
CSR is...
A long-term approach to business that addresses the needs of
communities, people and their employers. CSR provides frameworks for
successful enterprise that is harmonious with its surroundings. CSR is
an opportunity to generate honest, authentic good-news stories that a
business and its community can be proud of.
CSR must be sustainable - remaining a fundamental part of your
business regardless of changing fortunes.

The Benefits of Corporate Social Responsibility

88% of consumers said they were more likely to buy from a company
that supports and engages in activities to improve society.
- Better Business Journey, UK Small Business Consortium

Why do we need CSR?

Consumers increasingly don't accept unethical business practices or
organizations who act irresponsibly. Advances in social media (giving
everyone a voice) mean that negative or destructive practices quickly
fuel conversations online. Organizations are accountable for their
actions like never before.

The Business Benefits of CSR

CSR should not be viewed as a drain on resources, because carefully
implemented CSR policies can help your organization:
1. Win new business
2. Increase customer retention
3. Develop and enhance relationships with customers, suppliers and
networks
4. Attract, retain and maintain a happy workforce and be an
Employer of Choice
5. Save money on energy and operating costs and manage risk
6. Differentiate yourself from your competitors
7. Generate innovation and learning and enhance your influence
8. Improve your business reputation and standing
9. Provide access to investment and funding opportunities
10.
Generate positive publicity and media opportunities due to
media interest in ethical business activities
11.
A good reputation makes it easier to recruit employees.
12.
Employees may stay longer, reducing the costs and
disruption of recruitment and retraining.
13.
Employees are better motivated and more productive.
14.
CSR helps ensure you comply with regulatory requirements.
15.
Activities such as involvement with the local community are
ideal opportunities to generate positive press coverage.
16.
Good relationships with local authorities make

doing

business easier. See work with the local community.

17.
Understanding the wider impact of your business can help
you develop new products and services.
18.
CSR can make you more competitive and reduces the risk of
sudden

damage

to

your

reputation

(and

sales).

recognize this and are more willing to finance you.

Investors

What is Corporate Social Responsibility?

Definition of Corporate Social Responsibility

What CSR basically means is that a business does more for the
wellbeing of others than required in an economical (make a profit) and
legal (obey the law) sense.

Different types of CSR

Environmental CSR: focuses on eco-issues such as climate change.

Community based CSR: businesses work with other organizations
to improve the quality of life of the people in the local community.

HR based CSR: projects that improve the wellbeing of the staff.

Philanthropy: businesses donate money to a good cause, usually

through a charity partner.

CSR critics
Although most companies in the world today agree that corporate
social responsibility is part of daily business practice, this idea is not
shared by everyone. This is the so-called business to business
approach.

Advantages of Corporate Social Responsibility

5 reasons why should you get involved in CSR
In todays digital, fast speed world, each business, small or big, needs
to have a CSR program in place. If CSR is not yet part of your daily
business practice, you must act fast. Or else youll loose the trust of the
people who are important to your business.
Believe it or not but the expectations of your staff, customers and the
wider community have changed. You are no longer in control. They are.

So why CSR?
1. Satisfied employees.
Employees want to feel proud of the organization they work for. An
employee with a positive attitude towards the company, is less likely to
look for a job elsewhere. It is also likely that you will receive more job
applications because people want to work for you.

More choice means a better workforce. Because of the high positive

impact of CSR on employee wellbeing and motivation, the role of HR in
managing CSR projects is significant.

2. Satisfied customers
Research shows that a strong record of CSR improves customers
attitude towards the company. If a customer likes the company, he or
she will buy more products or services and will be less willing to change
to another brand.

Relevant research:

IBM study Attaining Sustainable Growth through Corporate Social

Responsibility: The majority of business executives believes that
CSR activities are giving their firms competitive advantage,
primarily due to favorable responses from consumers.

Better Business Journey, UK Small Business Consortium: 88% of

consumers said they were more likely to buy from a company that
supports and engages in activities to improve society.

3. Positive PR
CSR provides the opportunity to share positive stories online and
through traditional media. Companies no longer have to waste money
on expensive advertising campaigns. Instead they generate free
publicity and benefit from worth of mouth marketing.

4. Costs reductions
Yes, you read this correctly. A CSR program doesnt have to cost money.
On the contrary. If conducted properly a company can reduce costs
through CSR.

Companies reduce costs by:

More efficient staff hire and retention

Implementing energy savings programs

Managing potential risks and liabilities more effectively

Less investment in traditional advertising

5. More business opportunities

A CSR program requires an open, outside oriented approach. The
business must be in a constant dialogue with customers, suppliers and
other parties that affect the organization. Because of continuous

interaction with other parties, your business will be the first to know
about new business opportunities.

6. Long term future for your business

CSR is not something for the short term. Its all about achieving long
term results and business continuity. Large businesses refer to:
shaping a more sustainable society (Vodafone 2010 report): Deliver
a sustainable society in which business and its stakeholders can
prosper in the long term