Why companies rely on CSR

At the latest since the adoption of the “17 Sustainable Development Goals” by the General Assembly of the United Nations in 2015, sustainability has also been increasingly perceived by companies. But companies do not implement CSR solely for purely charitable reasons. Possible backgrounds are:

Basic moral conviction: Smaller, regional or family-run companies in particular often feel obliged for moral reasons to treat the environment and employees with care. For these companies, it is part of their obligation to make a positive contribution to society.

Economic benefits: CSR can also contribute to the economic success of a company. In particular, consumers or potential stakeholders are paying more and more attention to the life cycle assessment of a company. Those who can score points in this area gain a competitive advantage over competing companies. Often, companies also look for their suppliers according to their environmental balance, so the non-governmental organization Greenpeace insists that their suppliers consume as little energy as possible in production. For investors and stakeholders, sustainability in companies is increasingly becoming a basis for decision-making in future investments. A pronounced corporate social responsibility also contributes to a higher employer attractiveness, which can be decisive in attracting new, well-trained employees, especially in times of a shortage of skilled workers.

Improved reputation: Companies that not only practice CSR through “greenwashing”, but are actual pioneers in this area, use this for their marketing strategy. In this way, a positive image is built up with customers, business partners or suppliers, which can be helped with the use of a sustainability platform.

CSR – Areas of Responsibility

Corporate Social Responsibility can be divided into three central areas of responsibility:

Internal area of responsibility: The internal area of responsibility includes activities that relate exclusively to internal processes. They set the guidelines for the ethical and moral corporate culture, but limit themselves to internal structures and strategies. The actual business activity and profit generation is of secondary importance.

Medium area of responsibility: The medium area of responsibility includes fields of activity that are part of the normal core business as well as influence the areas of environment and society, such as the supply chains of a company. The central question here is: Is profitability for the company only in the foreground or are really good working conditions guaranteed? The corporate image – and thus also the success of the company – largely depends on the publicly visible processes of the middle area of responsibility.

External responsibility: The outer plane includes all areas that are not located in the inner or middle plane. This includes charity activities, such as donations and sponsorship, as well as volunteer activities of employees. For the latter, the working day may be interrupted.

About david

Check Also

3 Car Issues to Take Care of Before Holiday Travel

The holiday season is a time filled with joy, family gatherings, and, often, road trips. …