Articles by Levick Experts
Corporate social responsibility – or CSR – is a business term in search of an ironclad definition. It means different things to different people – both inside and outside of corporations.
To some people, corporate social responsibility is the humane duty of companies to improve or regulate labor practices – shutting down sweatshops in developing countries and the industrial centers of Group 8 nations, feeding the hungry, volunteering in schools, building homes for the homeless, fending for migrant farmers, creating goodwill in the community.
To others, corporate social responsibility is closely linked to sustainable development and business decisions based on ethical considerations and environmental consequences. The World Business Council for Sustainable Development says, “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 represents, fundamentally, the idea that corporations should assume responsibilities that go beyond profits and beyond charity. Now, with the enforcement of Sarbanes-Oxley, corporate social responsibility no longer occupies the fringe areas of business life but is, perforce, a subject for discussion in the boardroom.
Proponents believe we all benefit – stockholders, customers and non-customers alike – if businesses align corporate behavior with stockholder expectations and increased sensitivity to ethical and/or environmental issues. Detractors argue that a company’s only responsibility is to increase profits and executives are not responsible for public sector initiatives.
What is not debatable is that the so-called “ethical corporations” project a world of difference in their CSR ratings. Starbucks is an International Human Rights Award winner. Kraft with its parent company donates $100 million a year to feed the hungry. BP is a global leader in the cleanest burning fossil fuel, natural gas, and the world’s largest producer of solar energy.
As a business issue, CSR is all about mastering a communications challenge -- to define what the company is doing, why it is doing it, and to maximize the goodwill that results. Corporate social responsibility will remain an important differentiator in business today.Other Corporate Social Responsibility (CSR) Resources: