“Corporate Social Responsibility”
“Corporations today are under a microscope. Virtually every aspect of operations is subject to scrutiny by consumers.” According to Ogilvy, If CSR issues are managed well, there will be opportunities for a company to build its reputation and differentiate itself. In today’s society, what you stand for as an organization matters way more than what you produce, sell or what services you provide.
CSR is a commonly used as an abbreviation for “Corporate Social Responsibility”. It is the corporate plan to assess and take liability for the organization’s effects on the environment and impact on social welfare. It’s basically a company's commitment to values that benefit society in addition to itself and its shareholders. It includes procedures that support community services, giving to charity, fair trade, environmental protection, as well as equitable business dealings with customers, employees and business partners.
It’s important for persons to understand that CSR is not charity. It is generally about how companies earn their profits. It takes employees of integrity and appropriate organizational structures to realize good CSR strategies. It is a matter of both individual and institutional ethics. It’s amazing how much power a company can have in a community and the national economy. Many large corporations are devoting serious time and money to environmental sustainability programs and various social welfare initiatives that would benefit employees, customers and the community at large.
CSR is about building trust. Trust in the brand, the employee, the company to “do the right thing” and trust in the product or service. The task of CSR is to prevent morally guilty practices, which can weaken society, damage companies and hurt employees. More companies continue to recognize the relevance of moral practices in their businesses. Even though some have not yet officially implemented CSR, they do however engage in concrete preventative measures, which are often labeled “Risk management”. This is a term commonly used for the process of identifying, controlling and minimizing the impact of uncertain events in an organization. The last thing a company needs is bad press. In Public Relations, people manage this by having their organizations and clients listen to criticism. They see the importance in learning form other’s mistakes. Risk management specialist, Michael Regester, indicated that some companies only pay attention to the positives aspects of their organization and fail to recognize the intensity of criticism they often receive.
Some view CSR as a part of an organization’s overall “Issues management” initiative. Issues are situations that present matters of concern to organizations. Abe Bakhsheshy (2003) of the University of Utah defines it as a trend, an event, a development or a matter in dispute that may affect an organization. Issues management refers to the process by which an organization tries to...