After a decade of Corporate Social Responsibility (CSR) one thing is clear - the term is here to stay. Companies across the world - from both established and emerging markets - have embraced CSR ideals and let them direct policy in areas including workforce diversity, human rights and the environment.
Founded on the basic principle of responsibility, CSR considers how a business affects its employees, customers, suppliers, the wider community and the environment. By acting responsibly, businesses can minimise negative effects, but also increase their profits. In short everybody wins: the world becomes a better place, and businesses improve their efficiency and thus become more successful.
The business benefits of CSR are varied. On a basic level, CSR helps you comply with regulatory requirements. It can also help cut costs and improve performance, by for example, improving the efficiency of waste disposal or attracting a wider pool of talented workers through more inclusive recruitment policies. Beyond that, being responsible positions your company as one that cares. This can help recruit and retain employees, forge better relationships with the local community, and differentiate your company, its products or services.
Critics of CSR say that when deciding how to behave, businesses will more often than not be motivated by self-interest, and because of this, the only effective way to enforce corporate responsibility is through legislation. They ask: when given the choice, can companies be responsible?
Proponents and critics can debate all they like. The answer to the question, however, can only be answered by the companies themselves.
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