"Character and personal force are the only investments that are worth anything."
- Walt Whitman
Corporate responsibility (CR), also known as corporate social responsibility (CSR), is a commitment made by companies to be upstanding “citizens”. The concept is exemplified in the morals, values, and actions of the organization. These expectations are often times a part of the formal mission and objectives of the company. In the most basic sense, the corporation complies with the law, enforces ethical human interaction, and environmental ethics and consciousness. Furthermore, these companies vow to serve as a role model in the community and generally use a portion of their profits to pay it forward. Speaking with stakeholders, employees, and partners about their values and needs is an important element of CSR. (ICCWBO.org).
Corporate social responsibility aims to extend the self-sufficiency and longevity of a company by investing in the community. Considering the state of development in much of the Global South (the Other World), globalization and climate change are growing issues. CSR is becoming ever-more popular as companies realize that the aforementioned dilemmas will not solve themselves and rely heavily on the global market, not just national markets. Understanding how consumers (and supply) control the market, and how corporations are involved, consumers have begun to demand more ethical and eco-friendly practices from the businesses where they shop-- or they choose to spend their money elsewhere. “The value of a dollar” has taken on a new meaning as young adults connect the effects of their purchase to the success or failure of society (Fallon, 2014). Corporate Social Responsibility emerged in the United States after World War I. The earliest American practices took place during the Progressive Era. It was a means of addressing social issues, such as child labor and unsafe working environments (Clark, 1916). In the later part of the twentieth century, worker benefits governed CSR practices. Though most recently, CSR has been an effort to repair despair that multinational corporations have caused in the Global South or as a means to alleviate poverty, both locally and abroad (Bowen, 1953). It is suggested that we control CSR efforts via politics, because multinational corporations (MNCs) have close ties with political figures. MNCs have the power to run free in the global community with little to no repercussions. The only entity with the power to hold the MNCs accountable is the government (Moon, Crane, & Matten, 2005; Cheney, Roper, & May, 2007). Global business partnerships are established by recognizing cultural differences and meeting in the middle. In the same manner, CSR does not have a best fit practice; international cultural diversity prevents the existence of a perfect solution. Many CSR efforts are in vain as they decline with the profits of a company, such as in continents like Africa. Europe is a leader in CSR practices where a culture of expectation and pride has been established. Companies in Finland and the UK look forward to being socially responsible. On the contrary, in the United States many organizations tend to put on a CSR facade and skip out on their responsibilities. Nonetheless, so long as they turn a profit they are not held accountable or seen as ill global citizens. In an effort to address the real social and environmental issues, there needs to be an attitude adjustment, not a temporary behavior adjustment. By bringing awareness to the root of the issue and changing that initiating behavior, you can better solve the problem. “For instance, a waste governance study in Sweden revealed a new narrative order – changing human behavior associated with creating waste in the first place rather than framing landfilling as a social problem,” (Corvellec & Hultman, 2012). There are three main forms of CSR: environmental, philanthropic, and ethical labor practices. The smartest, most conscious and talented individuals are slowly choosing to work for companies that practice Corporate Social Responsibility. As society becomes wiser about where they spend their money, one can see how many people are willing to pay a higher price for a product that they know is more sustainable, ethically produced, and/or benefits a worthy stranger. For example, TOMS shoes have recently become popular; simple, not offering much support, and certainly not high fashion, for each pair of TOMS sold, a pair is donated to a needy child in a poorer country. Similarly, Ben and Jerry’s produces ice cream made only with Fair Trade ingredients and Starbucks follows a “good citizen” guideline weighing out the cost-benefit analysis of production options and using sustainably grown beans (Fallon, 2014). People are becoming more cognizant of the importance of environmental ethics and its impact on economics, politics, and health. Narrowing focus on the environmental side of corporate responsibility leads to corporate sustainability (CS). Aiming to minimize the carbon footprint and environmental impact, CS has taken on a role of its own in CSR efforts. What was previously understood as an effort to address the needs of the current generation without threatening the resources for the next, has evolved to addressing the needs of the current generation in social, environmental, and economic aspects, collectively; while still ensuring adequate resources and stability for the future (Montiel, 2008). Simply put, corporate sustainability controls potential threats to a company by balancing its values of: sustainable development, accountability, corporate social responsibility, and stakeholder theory. Sustainable development is important for successful CS, because governments alone cannot be expected to facilitate development in a manner that is most beneficial to society. Corporations are a major player in economics and infrastructure, likely with more power than the government; it has become their responsibility to encourage and produce lasting developments. Under CS it is widely accepted that CSR does not state if corporations should play a positive active role in society, but rather how large is that role (Wilson, 2003). Stakeholder theory emphasizes the importance of relationships with outside partners and those who benefit from the success of the company. This presents ambiguity, because the investors and employees who are known stakeholders will lose if the company fails to meet their objectives. There are also indirect stakeholders, such as citizens of foreign countries, who are negatively impacted by company failure, in the areas of economy or climate change, for example. This can lead into corporate accountability, which varies from CS, because CSR requires a company to operate in a particular manner, versus accountability which requires the company to justify its reasoning for partaking in particular operations (Wilson, 2003). Even with multiple explanations as to why companies practice Corporate Social Responsibility (to be upstanding), varying viewpoints would disagree that such actions are implemented with selfish intentions. CSR has been referred to as a tactic of public relations; a way to maintain a good reputation and relationships with consumers and partners (Frankental, 2001; Sagar & Singla, 2004). The value of a public relations specialist has increased since the introduction of CSR. The public relations professional is tasked with promoting the positive behaviors of the organization as a defense mechanism and a recruitment tool. In other words, CSR is a proactive way to meet the objective of a business-- to make money. Some scholars encourage the public relations specialist to influence the organization by changing the bottom-line to a triple bottom-line; recognizing the importance or people, planet, and profit. This would ensure the company is taking precaution and protective measures on all sides. |
Below are a few companies that have invested in CSR. By shopping with them you can be a part of the change to encourage ethical and sustainable business practices while supporting the environment and society.
The King of CSR
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Bowen, H. R. (1953). Social responsibilities of the businessman. New York: Harper.
Cheney, G., Roper, J., & May, S. (2007). “Overview.” In S. May, G. Cheney, and J.
Roper (Eds.), The debate over corporate social responsibility (pp. 3–12). New York: Oxford University Press.
Clark, J. M. (1916). “The changing basis of economic responsibility.” Journal of Political Economy, 24, 209–229.
Corporate responsibility explained. Retrieved from http://www.iccwbo.org/advocacy-codes-and- rules/areas-of-work/corporate-responsibility-and-anti-corruption/corporate-responsibility-explained/
Corvellec, H. & Hultman, J. (2012). “From “less filling2 to ‘wasting less:’ Societal narratives, socio-materiality, and organizations.” Journal of Organizational Change Management, 25(2), 297–314.
Fallon, N. (December 22, 2014). What is Corporate Social Responsibility? In Business News Daily (News and Trends). Retrieved from http://www.businessnewsdaily.com/4679-corporate-social-responsibility.html
Frankental, P. (2001). “Corporate social responsibility: A PR invention?” Corporate Communications, 6(1), 18–23.
Montiel, I. (September 2008). Corporate Social Responsibility and Corporate Sustainability Separate Pasts, Common Futures. Organization and Environment, 21(3), 245-269. doi: 10.1177/1086026608321329
Moon, J., Crane, A., & Matten, D. (2005). “Can corporations be citizens? Corporate Citizenship as a metaphor for business participation in society.” Business Ethics Quarterly, 15(3), 429–453.
Sagar, P. & Singla, A. (2004). “Trust and corporate social responsibility: Lessons from India.” Journal of Communication Management, 8(3), 282–290.
Wilson, M. (March/April 2003). Corporate Sustainability: What Is It And Where Does It Come From? Ivey Business Journal, Social Responsibility. Retrieved from http://iveybusinessjournal.com/topics/social-responsibility/corporate-sustainability-what-is-it-and-where-does-it-come-from#.VLQUmNLF8fY
Cheney, G., Roper, J., & May, S. (2007). “Overview.” In S. May, G. Cheney, and J.
Roper (Eds.), The debate over corporate social responsibility (pp. 3–12). New York: Oxford University Press.
Clark, J. M. (1916). “The changing basis of economic responsibility.” Journal of Political Economy, 24, 209–229.
Corporate responsibility explained. Retrieved from http://www.iccwbo.org/advocacy-codes-and- rules/areas-of-work/corporate-responsibility-and-anti-corruption/corporate-responsibility-explained/
Corvellec, H. & Hultman, J. (2012). “From “less filling2 to ‘wasting less:’ Societal narratives, socio-materiality, and organizations.” Journal of Organizational Change Management, 25(2), 297–314.
Fallon, N. (December 22, 2014). What is Corporate Social Responsibility? In Business News Daily (News and Trends). Retrieved from http://www.businessnewsdaily.com/4679-corporate-social-responsibility.html
Frankental, P. (2001). “Corporate social responsibility: A PR invention?” Corporate Communications, 6(1), 18–23.
Montiel, I. (September 2008). Corporate Social Responsibility and Corporate Sustainability Separate Pasts, Common Futures. Organization and Environment, 21(3), 245-269. doi: 10.1177/1086026608321329
Moon, J., Crane, A., & Matten, D. (2005). “Can corporations be citizens? Corporate Citizenship as a metaphor for business participation in society.” Business Ethics Quarterly, 15(3), 429–453.
Sagar, P. & Singla, A. (2004). “Trust and corporate social responsibility: Lessons from India.” Journal of Communication Management, 8(3), 282–290.
Wilson, M. (March/April 2003). Corporate Sustainability: What Is It And Where Does It Come From? Ivey Business Journal, Social Responsibility. Retrieved from http://iveybusinessjournal.com/topics/social-responsibility/corporate-sustainability-what-is-it-and-where-does-it-come-from#.VLQUmNLF8fY