Corporate social responsibility

What is corporate social responsibility?

Corporate social responsibility (CSR) covers a range of strategies, policies and activities that a company may adopt in order to make a positive impact on the world. CSR is about going above and beyond what is expected through routine environmental or employer regulations to actively make a difference.

What are the origins of corporate social responsibility?

CSR has its roots in big business and stems from a time when concepts like sustainability and community engagement were less common. We now think of companies investing in environmental practices and community projects as widespread, but this wasn’t always the case. CSR developed to address the negative environmental and social image around some large multinational corporations. Today the concept of CSR is well established and relevant to all businesses, regardless of size.

Types of corporate social responsibility

CSR covers a broad range of activities. The Financial Times definition of Corporate Social Responsibility includes human rights, corporate governance, health and safety, environmental effects, working conditions and contribution to economic development.

Some of these may sound like big issues to tackle, particularly for a smaller company. But any additional steps you take to make a positive difference to the environment around you, the people who work for you and the community you operate in, can be considered as addressing your corporate social responsibility.

Why is corporate social responsibility important?

CSR has become so embedded that many consumers expect large corporations to demonstrate they are committed to making a difference. You see this type of activity every day, often in small ways that you may not notice; like a café using Fairtrade products, a supermarket raising money for local communities, or a shop using only recycled packaging and paper bags. We may not always register these activities when we see them in action, but they affect our overall impression of a brand and ultimately how customers perceive companies.

CSR Case Study: IKEA & environmental sustainability

Swedish furniture company IKEA has invested heavily in sustainability. As well as investing in forests in Romania and wind farms in Poland, the Guardian reported in May 2017 that the company was investing in a plastic recycling plant in the Netherlands.

Cost savings from corporate social responsibility

Meeting customer expectations is of course important, but there is evidence of CSR making a significant positive impact to a business, beyond customer satisfaction. Investing in environmental and sustainability initiatives for example, can significantly reduce expensive wastage and reduce energy consumption.

Business in theCommunity is a leading UK charity in the field of corporate social responsibility.Their 2016 Corporate Responsibility Insights Report estimates that in 2015, international support services business Carillion saved £33.8m by implementing sustainable CSR practices .

Employment and corporate social responsibility

Generation Z(the post-millennial generation) is entering the workplace and further changing employee expectations. Research by business network group i4cp found that this group (born after 1996) expect even more of their employers in terms of CSR. I4cp found that 93% of Gen Z said that a company’s impact on society affects their decision to work there . The importance of CSR in attracting the best candidates during recruitment is likely to continue to grow over time.

CSR Case Study: Costain & social investment in employment

Engineering consultancy Costain embed corporate social responsibility in to their recruitment processes. The 2016 Business in the Community Corporate Responsibility Insights Report details that for every £3m of contract value the company aims to recruit one apprentice or NEET (a young person 'Not in Education, Employment or Training'). This practice supports social investment and is regularly monitored by the company.

Consumer research into corporate social responsibility

It’s clear that consumer expectation exists for companies to demonstrate they’re making a difference. But recent research suggests that customers don’t just take a company’s CSR claims at face value. The 2017 Cone Communications CSR Study found that 65% of American consumers will check a company’s claims around social or environmental issues with their own research. For Millennials the figure is even higher, with over 76% of younger consumers undertaking research to check the authenticity of a company’s stance on social and environmental issues.

Corporate social responsibility for small businesses

For large businesses, CSR can make a significant difference to brand perception and awareness. It’s very easy for large multinationals to attract positive press from major environmental or social initiatives. However CSR is just as relevant to small businesses and can have just as positive an impact.

Rowena Perrott, general manager of Boxtopia (a cardboard box supplier) recently wrote an article for Business Advice on how your small business can embrace CSR in 2018 and make a difference.

The article is full of suggestions for how small businesses can engage in CSR. One such example is Shredall SDS group, a company that donated their old wooden pallets to a nearby village for their fireworks-night bonfire. The company turned their waste materials in to an opportunity to build positive links with local customers.

Embedding corporate social responsibility in your business

For small businesses the key to a successful CSR strategy is to start small and build up from there. One really simple approach is to let your staff take the lead; find out what interests them in their community and further afield and support volunteering days that add value to your local area. The charity Business in the Community runs a number of workplace volunteering schemes that could help launch your CSR activity, or alternatively your local voluntary sector council (VSC) will also be well placed to help.

To really benefit, corporate social responsibility needs to become embedded across all aspects of your business. Coaching and training organisation Potential.com have a really useful guide to implementing a successful CSR business strategy .

Communicating corporate social responsibility

Sharing your CSR activity with your customers is important. It tells them about the values you want to associate with your brand and also highlights the positive work you’ve been doing. This type of content is really well suited to sharing on social media and featuring in news articles and blog posts.

If you’d like help in spreading the good news then QuayClick can help. We're a web design agency in Exeter specialising in website builds, copywriting and digital marketing. Our copywriters can produce quality content for your website around your CSR activity, whilst our social media experts are used to creating effective campaigns to share your news online. Please contact us if you’d like to discuss how QuayClick could help promote your CSR activities.