Companies have now put aside the idea that their function is only to market products and services for people's consumption. While it is true that this is the main engine of organizations, they must take into account a series of actions that are focused on generating social, environmental and economic value for both employees and the environment.
These actions all converge on something called Corporate Social Responsibility (CSR), an extremely important concept for any business sector in the world.
Know the 5 main things you should know about corporate social responsibility.
1. What is CSR?
The Corporate Social Responsibility is the set of actions and practices that contribute actively and voluntarily to the improvement of the social, economic and environmental development of a country.
CSR must be an activity supported mainly by the ethical values of the company, based on policies, practices and institutional and social programs.
2. On what is CSR based?
Like any practice, Corporate Social Responsibility must be based and supported in certain axes, with 7 main ones:
- Governance
This axis focuses mainly on the management of the company, based on transparency, collaborative equity, accountability and social, environmental and economic aspects.
- Internal Public
This axis takes into account the human capital of the company, is motivated by totally responsible policies and practices that generate stable working conditions, productive and family welfare.
- Responsible Marketing
Responsible marketing is fulfilled through the development of a relationship of trust between the company and its customers.
- Environment
The company must be committed to maintain and develop environmentally conscious operations, use economic resources adequately and avoid negative impacts on the planet.
- Community
Organizations must have full commitment to the social, economic and environmental development of the area where they are located, involving communities and residents.
- Suppliers
Suppliers of the company's products and services must build transparent and lasting relationships, based on mutual cooperation and proper treatment.
- Public Policy
The company must generate business interest and public interest to promote the social, economic and environmental development of the country where it operates.
3. Is CSR a philanthropy action?
No. Acts of philanthropy are generally associated with the donation of economic resources carried out by humanitarian institutions or specific social groups through non-governmental or non-profit organizations.
Corporate Social Responsibility does not seek to transform companies into a charitable organization, because companies need to be profitable. Rather, it seeks that companies adopt a responsible and active stance on the results of their operations.
That is, contribute to achieve in society an economic, social and environmental balance that will benefit companies and people at the time of having a more stable and quality environment.
4. Pyramid of Corporate Social Responsibility
The Corporate Social Responsibility for its correct application raises a specific order based on two key points:
Internal Dimension: comply with the country's business legislative criteria, establish a guide to ethical and transparent processes, have responsible processes with its collaborators to develop the maximum potential of human capital.
External dimension: at this point it is extremely important to keep in mind the well-being of the families of the company's employees, the nearby communities and the state of the country.
Source: centrarse.org
5. CSR and the participation of communities
Corporate Social Responsibility is fully committed to participation and impact in the communities in which they operate. This relationship creates ties of involvement in order to build a uniform development.
Some of the criteria that CSR considers for community development are:
- Education and culture
- Job creation and skills development
- Development and access to technology
- Generation of wealth and income
- Health
- Social investment
CSR is probably one of the practices with the greatest benefit in the short, medium and long term, both in the company and in society. However, it is important to bear in mind that it is essential that the corporate responsibility processes be carried out internally in order to encourage employees to be well-being, satisfaction and motivation.
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