hat is Corporate social responsibility?
Corporate social responsibility, generally known as CSR, is a self-governing business model that involves a business being as socially responsible to itself, its stakeholders, its public, and the environment, as possible it can.
By being involved in corporate social responsibility, also called corporate citizenship, brands show how aware they are of their effects on society, including economic, social, and environmental.
Engaging in CSR translates into a business taking its operations in ways that boost society and the environment rather than harming them.
Besides contributing in a good way to the world, through corporate social responsibility activities, such as philanthropy and volunteer work, businesses can actually attract some benefits for themselves.
According to a survey published in the Journal of Consumer Psychology, clients are more likely to relate positively to a brand that has done some actions to benefit the public.
As an organization is more involved in CSR operations, it is presumably to get advantageous brand recognition. In addition to that, employees are more likely to remain loyal to a company that aligns its values with theirs. This results in less employee turnover, unhappy workers, and the whole cost of a new employee.
On the other hand, non-profit organizations must develop a CSR plan to attract business associates who can contribute and join their cause, boosting their funds.
Examples of Corporate Social Responsibility
CSR initiatives can be taken in many different forms. Even small businesses can show their support for social change by donating to local causes. However, some of the most general examples of corporate social responsibility involve:
- Decreasing carbon footprints
- Getting better working policies
- Practicing equitable trade
- Encouraging diversity, equity, and inclusion
- Supporting charity causes
- Local and virtual volunteering
- Corporate actions that support the environment
- Investing in social and environmental causes
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How public sees CSR examples of actions?
Socially responsible companies are gaining more and more importance, especially for the millennials and Gen-Z. They strongly believe that companies should support and invest in social causes by searching for solutions that would help those changes happen.
A 2023 OnePoll research revealed that the majority of Gen Z and Millennials make their purchases based on the brand’s mission. The study conclusions stated: “The poll of 2.000 US young adults found that younger Americans feel brands need to be held to a higher standard - 80% are likely to base their purchases on a brand’s mission or purpose.”
In addition to that, the survey concluded: “When shopping, many actively seek out eco-friendly brands (51%), use naturally sourced ingredients (49%), and have a strong social media presence (44%). Also, nearly 4 in 5 (78%) said it’s important to them to buy products that are organic, natural, and environmentally conscious, and 82% make an effort to only buy products that use naturally sourced or naturally derived ingredients.”
So, in addition to involving in CSR actions, companies need to share these efforts, so the public can see their commitment to social causes. Spotlighting these corporate social responsibility work is a key factor in the marketing strategies, so it is important to learn how to showcase to the millennials, as these efforts will be decisive in their choices as consumers.
Millennials also like involving themselves personally in these cases, so they will help with donations or volunteering.
As more brands start to see the result of their socially and environmentally mindful efforts have on a client impression, the more likely there is that they will begin taking the actions into their own hands.
Corporate social responsibility example directions
Millennials, Gen-Z, and other generations' activism will also shape CSR trends. As an example, you can presume that more and more companies will speak out against on-the-job molestations and favoritism as a result of the “#metoo” social campaign.
Diversity among the workers will also keep expanding to welcome people from all races, genders, sexual orientations, cultures, and disabilities. As an example, many brands are getting more vocal about manifesting their support for significant social matters on social media.
Brands will find their voices to approach social inequity and policy alterations that will unfavorably affect the environment, as well. Even regulations to defend data privacy in a changeable environment might become a section of CSR trends, as there are increasingly more data violations out there, threatening personal information.
Back in 2022, Yvon Chouinard, Patagonia’s creator, established a new milestone in ecological corporate leadership by putting its company and future profits into fighting against global warming.
Chouinard declared: “If we have any hope of a thriving planet - much less a thriving business - 50 years from now, it is going to take all of us doing what we can with the resources we have. This is another way we’ve found to do our part.”
Corporate social responsibility and AI
It is well known that AI provides many different benefits to companies, such as automation, optimization, and customization. But it also brings its risks.
We have to keep in mind that AI is fully based on data to study and offer insights, so poor or wrong data can lead to distorted results, and distorted results will translate into imbalance and bias.
The public can also be disoriented about the way AI is utilized in an organization and this would develop an environment of doubt if the work is not made to be clear and equitable in its use.
This is where Responsible Artificial Intelligence or RAI appears. Following an MIT master survey, 90% of managers in organizations with at least $100 million in year profits - stated that their organization’s RAI and CSR work are connected.
Aisha Naseer, head of research at Huawei Technologies Co. declared: “From an organizational perspective, the practical implementation of the responsible AI initiative needs to be closely aligned to corporate social responsibility efforts to steer responsible business outcomes.”
Brands Corporate Social Responsibility Example Done Right
- Johnson & Johnson - Sustainable Innovation
One of the best CSR examples of action is given by the colossal pharma company Johnson & Johnson. They have been centered on decreasing their negative influence on the planet for more than 30 years. Among others, their actions involve using as much as possible the windpower and offering potable water to disadvantaged communities from all across the globe.
Their acquisition of a private energy provider in the Texas, Panhandle, enabled the organization to diminish pollution while providing a sustainable, cheap substitute for electricity. Johnson & Johnson keeps searching for renewable energy alternatives to get 100% of its energy requirements from environment-friendly bases by 2025.
- Coca - Cola: Sustainability
(Image credits: Coca-Cola)
Coca-Cola invests a lot of attention and work in being sustainable. Among their core CSR interests are climate change, packaging regulation, agriculture, and water management. Their CSR campaign message is “a world without waste”, intending to gather and reuse every bottle, transforming their packaging into a 100% recyclable one, and substituting all the water utilized in manufacturing their soda back to nature to support water security.
Also, their target by 2023, is to decrease their carbon footprint by 25%. Furthermore, Not long ago, Coca-Cola revealed its first soda bottle produced 100% of plant-based plastic. Dana Breed, Global R&D Director, declared: “Our goal is to develop sustainable solutions for the entire industry. We want other companies to join us and move forward, collectively. We don’t see renewable or recycled content as areas where we want competitive advantages.”
- Ford Motor Company - no carbon and equity incomes
Another corporate social responsibility example is Ford's significant future plan. Their goal is to “build a better world, where everyone is free to move and pursue their dreams.” They have boosted their investiture in electrification up to $22Bn (from a start of $11Bn) and want their cars to be carbon neutral by 2050. Bob Holycross, Ford’s VP, Chief Sustainability, Environment, and Safety Officer, declared: “We’re committed to carbon neutrality. It’s the right thing for our customers, the planet, and Ford.
Ninety-five percent of our carbon emissions today come from our vehicles, operations, and suppliers, and we’re tackling all three areas with urgency and optimism.” In addition to that, Ford is also paying attention to income equity. They are directing a variety, of equity and integration audits while inserting a worldwide pay proportion (including gender) to standardize the work field for all employees.
- Google - Social matters
Another corporate social responsibility example is the one from Google. Google is reliable not only for its eco-friendly actions but also thanks to its straightforward CEO, Sundar Pichai. He adopted a public position against the racist comments made by an ex-U.S. president and the negative effects of AI on society relating to disinformation and fake news. Google also donates to social initiatives to enhance inclusion both inside the company and outside it, in specific areas, such as:
6. Pfizer - Healthcare assistance for everyone
A beautiful corporate social responsibility comes from another pharma giant, Pfizer. The Pfizer Foundation was founded more than 70 years ago and its goal has been to “help build healthier communities around the world”.To achieve this mission, they support community-based modernizations and security net healthcare suppliers, encourage health justice, and offer impartial access to vaccines.
Furthermore, they also offer donations in case of natural disasters, such as Haiti, following the Matthew Hurricane and the global refugee emergency in Europe and the Middle East. All these funds are supplied in partnership with NGOs to make it to as many people as possible. Due to Pfizer’s Global Health Innovation Grants movement, are offered approximately $100.000 each year to 20 non-profit organizations. From that point, the funds are used to solve vaccine-avoidable maladies in poor communities.
7 & 8. Netflix & Spotify - Workers rights
Entertainment companies such as Netflix and Spotify CSR examples of social involvements. They provide advantages to help their workers and families. Netflix provides up to 52 weeks of remunerated parental leave to the parent who gave birth, but also to a non-birth parent (which involved adopted children). This benefit can be reserved at any time, either in the child's first year of life or any other time, according to their needs.
The average child-raising leave at other big tech companies is only 18 weeks. On the other hand, Spotify provides a comparable benefit, even if for just 24 weeks of compensated leave, but workers are allowed to miss until their child is three years old. Their program also provides a smooth transition of one month of malleable work.If we’re talking about involvement in social issues, Netflix and Spotify utilize their social media channels to prove their assistance for movements such as ecological sustainability, Pride Month, and Black Liver Matters.
9. Starbucks - employees diversity
(Image Credits: Starbucks)
When it came to employment Starbucks aimed to vary its workforce and started to offer opportunities for certain groups. The coffee giant committed to hiring 25.000 US military old hands, and partners by 2025 in the context of its socially responsible work. Starbucks even exceeded its goal, employing 40.000 veterans and spouses since the inauguration.
In addition to that, to fight against racial and social inequality, Starbucks declared that would conduct guidance to connect people who come from minorities to older leaders, and finance partnerships. The coffee chain also wants to achieve a BIPOC (black, Indigenous, and people of color) presented at 30% of corporate functions, and 40% in sales and manufacturing by 2025.
10. Bosch - 0 environmental negative impact
Bosch initiatives are among other good CSR examples. Bosch has proposed some challenging goals to protect the environment, intending to reduce their ecological impact through climate operations, water consumption, and a regenerative economy. And it looks like this goal has been productive leading the way for other international companies, as 400 of its plants are now climate neutral. Bosch’s next step is to decrease upstream (acquired goods and services), and downstream (product usage) emanations by 15% until 2030.
military oldThe chief of EHS and Sustainability, Torsten Kallweit, said: “Having achieved our initial targets for scopes 1 and 2, we are now tackling scope 3 emissions with the same degree of rigor - setting specific and milestones for the coming years.”
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