Question

5. Do you think a public company should be concerned with Corporate Social Responsibility? Why or why not?

Answer 1

There are actually two different types of corporate social responsibility to consider. The first one consists of corporations providing funding and resources for worthwhile social causes, such as donating money or employee time to charities. For many people, this is the definition used when thinking about corporate responsibility.

However, another type of CSR involves putting together a real plan to produce products or provide services that are in the best interests of society. These include things like using safe materials in design and manufacturing, corporate environmental initiatives, and other factors such as job creation and economic development.

Social responsibility has become increasingly important to companies over the last several years. Whether it's by empowering women, helping the environment, or trying to end poverty, more and more companies are incorporating social responsibility into their overall business strategy. The social issues may be local, national, or global, but a concern for the health and wellness of others that do not involve sales can be seen as commendable. There are many reasons why a company might engage in social responsibility, and in this article, we'll outline a few of them.

Examples of Corporate Social Responsibility

Coca-Cola Company (KO)

In 2010, Coca-Cola started the 5by20 initiative to empower women across the globe.

"The Coca-Cola Company’s global commitment to enable the economic empowerment of 5 million women entrepreneurs across the company’s value chain by 2020."

1. Improves Public Image

Companies that demonstrate their commitment to various causes are perceived as more philanthropic than companies whose corporate social responsibility endeavors are nonexistent.

A corporation’s public image is at the mercy of its social responsibility programs and how aware consumers are of these programs.

2. Increases Media Coverage

It doesn’t matter how much your company is doing to save the environment if nobody knows about it.

Make sure you’re forming relationships with local media outlets so they’ll be more likely to cover the stories you offer them.

3. Boosts Employee Engagement

Employees like working for a company that has a good public image and is constantly in the media for positive reasons.

Happy employees almost always equal better output.

4. Attracts & Retains Investors

Investors who are pouring money into companies want to know that their funds are being used properly.

Not only does this mean that corporations must have sound business plans and budgets, but it also means that they should have a strong sense of corporate social responsibility.

Corporate social responsibility (CSR) is not going to solve the world’s problems. That said, CSR is a way for companies to benefit themselves while also benefiting society. When I define CSR to the uninitiated, I typically get three reactions. Some say, “Isn’t that a bunch of greenwashing?” Others use a non-so-nice word to describe male bovine excrement instead of greenwashing. Still others say my definition sounds like an inspiring call to action to soothe the ills of capitalism. Then there are those who say CSR is like a begrudging call to Woodstock to sing Kumbaya – something only “hippies” could dream up.

So what’s a CSR professional supposed to do when faced with such a varied response? Typically, I step on top of my soapbox to declare the six business reasons why companies should embrace corporate social responsibility.