Corporate Social Responsibility

Corporate social responsibility is a company’s responsibility towards the community and the masses at which goes beyond their legal or contractual obligation. It initially became popular in the 1960. CSR has become important as it brings benefits like human resource management, cost benefits, environmental protection, anti corruption measures, corporate philanthropy.

Giant multinationals have seen growth while performing social activities, one such activity by Unilever was cancelling the contract of its paper supplier, Asia Pulp & Paper when it was discovered that it was destroying precious habitat in Indonesia’s rainforests.

Similarly Coca Cola’s goals for the year 2020 includes reduction of carbon dioxide emission by 25% through their entire value added chain and improvement of water efficiency by 25% to ensure health safety.

The United Nations Global Compact is an initiative devised to promote socially beneficial policies around the globe with principles based on areas of labor, human rights, environmental and anti corruption measures.  It has over 8,700 participants from over 130 countries.

These principles emphasize the fact that business must adhere to proper regulations of basic human rights and avoid abuses; labor must have freedom of association and right to collective bargaining, complete and effective abolishment of child and forced labor and elimination from discrimination in employment and occupation. Businesses should take precautionary measures and undertake initiative to promote greater environmental responsibility, development and usage of environmental friendly technologies. Anti-corruption policies and system of internal control for prevention of all forms of corruption like bribery and extortion should be devised.

 

The United Nations Global Compact provides a platform for various participants to collaborate and exchange on critical issues of the environment as well as solving common challenges. It provides access to knowledge and experience of UN in development of suitable policies for the above challenges. It increases the transparency and accountability through public dialogue and appearance while improving reputation, brand value and organizational efficiency which in return increase employee morale and productivity.

In conclusion, virtually every activity made by the business reaches the society at large either creating positive or negative social consequences. Not only does corporate activity affect society but also external social conditions, while further influencing the corporation’s activities. CSR is, in essence about controlling and managing social, communal and environmental impacts to improve results, reduce risks and is an effective medium to enhance reputation while facilitating business growth.