Corporate Social Responsibility Trends 2022

PHOTO BY KRAKENIMAGES ON UNSPLASH

Having a positive impact is increasingly important for every business.

This is why corporate social responsibility (CSR), an obligation that a company has towards people, communities and the world at large, is a must. Between humanitarian projects, environmental projects, and companies going above and beyond to support their employees, there are many diverse trends in corporate social responsibility.

But first, let’s define what corporate social responsibility is?

The United Nations Industrial Development Organization (UNIDO) defines corporate social responsibility,

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“CSR is generally understood as the means by which a company achieves a balance between economic, environmental and social imperatives (“Triple-Bottom-Line-Approach”), while meeting the expectations of shareholders and stakeholders.”

The European Union, meanwhile, said that corporate social responsibility is the voluntary integration of social and ecological concerns of companies in their business activities and their relations with their stakeholders. Being socially responsible means not only fully complying with applicable legal obligations, but also going beyond and investing “more” in human capital, the environment and relations with stakeholders. This was published in 2001 by the European Union on a green book on CSR.

At the same time, the International Organization for Standardization (IOS), an international standards body, defines CSR as “the responsibility of an organization for the impacts of its decisions and activities on society and the environment, resulting in a ethical behavior and transparency that contribute to sustainable development, including the health and well-being of society; takes into account the expectations of stakeholders; respects the legislation in force and complies with international standards of behavior and is integrated into throughout the organization and implemented in its relationships.”

In the Philippines, CSR has always been voluntary. Donations can be qualified as CSR.

These local guidelines reflect globally accepted frameworks for non-financial reporting, such as the Global Reporting Initiative (GRI) sustainability reporting standards, which are aligned with the United Nations Global Compact, a voluntary agreement of companies to respect the principles of sustainability.

CSR attracts and retains employees

Companies committed to CSR are attractive to new employees and better at retaining existing employees. Research has found that companies committed to CSR have 50% lower employee turnover rates.

Research has also shown that organizations that adopted a CSR program reported an astonishing 16% increase in employee productivity.

CSR improves customer perception

The PwC Global Consumer Insights Pulse Survey 2021 found that 53% chose to support companies “very often or often” that had strong corporate values ​​and demonstrated a commitment to doing the right thing. Seventy-seven percent of US consumers were motivated to do the same, while 74% of UK consumers also consider brand values ​​before making a purchase.

CSR is good for business

Most investors view CSR as a sign of ethical business behavior that minimizes risk. A 2022 study found that CSR can boost a company’s bottom line by creating value, increasing innovation, improving customer and employee relationships, and expanding options for growth.

CSR has the potential to make a business more competitive, reduce financing costs and increase overall economic value. Not only that, but it’s the way of the future. The status quo is harming our planet. Using business as a force for good has the potential to save them.

Examples of CSR

As for examples of corporate social responsibility, some of the most common CSR actions include:

  • measure and reduce environmental impact (by partnering with an organization);
  • improving working practices;
  • participate in ethical sourcing;
  • engage in global charitable giving;
  • use renewable energy;
  • provide volunteer opportunities in the workplace;
  • adopt corporate policies that benefit the environment (such as recycling through TerraCycle);
  • make socially and environmentally responsible investments; and
  • commit to diversity, equity and inclusion.

It is important to recognize socially responsible companies, not only to salute their efforts, but to encourage other organizations to integrate social good into their missions. With so many types of corporate social responsibility, it’s easy for a company to engage with one or more that best suits its size, business model and operational goals. When we all work to make an impact, we can help support a greener, more equitable future.

SPECIAL ELEMENTS TEAM

About Tina G.

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