What is corporate social responsibility (CSR)? CSR is a business model that helps a company be socially accountable. To participate in CSR means that in the ordinary course of business, a company is operating in ways that enhance society and the environment. In this article we will take a closer look at four basic facets of CSR.
The four basic facets in corporate social responsibility include the community, the environment, the marketplace and the workplace.
The Community
The community aspect of CSR refers to your company’s contribution to the local community. This can include raising money for local charities, sponsoring local events or employing people from a community.
The Environment
People are becoming much more environmentally aware. It is a given that a percentage of your customers and/or clients have environmental concerns. Consumers want to know that the companies they are purchasing from have good environmental practices. Businesses can show that they are environmentally aware by working in eco-friendly buildings. They can encourage recycling in the workplace.
The Marketplace
Proper CSR includes the responsible utilization of advertising, public relations, and ethical business conduct. Another key component in this area is adopting fair treatment policies towards suppliers and vendors, contractors and shareholders. The marketplace aspect of CSR means rejecting exploitative business practices. Companies should use fairer and more equitable business practices. Customers care about the footprint of the products they buy.
The Workplace
CSR encourages the implementation of fair and equitable treatment of employees. It also includes observing workplace safety protocols and embracing equal opportunity employment and labor standards.
Adopting corporate social responsibility serves to increase both shareholder and investor interest. It also encourages a company’s value. Embracing CSR practices can make it easier to attract a buyer and that buyer may be willing to pay a higher selling price.
Many buyers want a business that has many of the attributes supported by the four facets of corporate social responsibility. Buyers want businesses that have a high level of customer loyalty and have good relations with the local community. Buyers also want businesses that have quality relationships with their suppliers and vendors. They also want loyal and dependable employees.
Sellers need to realize that buyers want products, goods and services that are in line with the current trends of the marketplace and have an eye towards future trends. Buyers don’t want to find any skeletons in the company closet. Proper utilization of CSR can address all these concerns. It can also make your business more attractive to a potential buyer when it comes time to sell your business.