Corporate Social Responsibility – What’s so Important?

Do a little fact finding around corporate social responsibility (CSR) and you will uncover that 85% of FTSE100 companies now report on their CSR activities. What is all the fuss about?

What is Corporate Social Responsibility?

Having a CSR strategy demonstrates how an organisation views its responsibilities towards other groups besides its shareholders and investors. CSR policy encourages organisations to consider the environmental and social impact of their business operations, including the wellbeing of employees, the community and society in general.

Why is it important?

CSR used to be an outlier in conversations around economics but now it has become an essential ingredient for any organisation looking to develop and succeed. The increasing importance of having a socially responsible business can be attributed to several factors;

  • Reduced government policy legislation which forced industries to deliver on their social and environmental objectives.
  • Increasing demand from stakeholders for greater disclosure
  • Growing evidence base highlights that customer purchasing decisions are influenced by an organisation’s ethical conduct.
  • Rising trend in investors using CSR as part of their screening criteria.
  • A labour market with principals. Employees want to work for an organisation that has the same ethical standards they do.
  • Furthermore to retain a skilled and motivated workforce employers are directed towards improving working conditions.

What are the benefits?

Done properly CSR can have a positive impact on the ‘triple bottom line’ people, planet and profits.

Revenue growth is achieved through an increase in sales and customer loyalty as well as by creating a brand image that both employees and stakeholders can relate and aspire to. Having employee friendly policies can help an organisation to increase productivity, improve the quality of any products/services and secure a competitive edge by attracting a diverse workforce. In addition the community around a corporation can see a benefit in charitable contributions, involvement of employees in volunteer work and the outcomes of corporate intervention on such policies as education and employment. Perhaps when most people think of CSR they immediately relate this to environmental value and amongst others this could be in the form of extensive recycling initiatives or a greater focus on use of renewable resources.

Still not convinced? Let some of these big names (and numbers!) tell their story:

  • Walmart – Packaging reduction: $200 million in initial costs savings in 2009.
  • Marks & Spencer – Plan A: $296 million in combined economic benefits since 2007.
  • Intel – Energy reduction: $23 million in annual costs savings since 2001.

Accoria’s Corporate Social Responsibility Strategy

Here at Accoria we have a robust CSR policy encompassing our obligations towards all our stakeholders – staff, customers, suppliers, neighbours and the environment. Click here for more information on how we are adopting the principals outlined above.

2 Comments

  1. Will-Reply
    September 23, 2014 at 4:47 pm

    Great blog, it is about time organisations took greater notice of their impact on everyone else

  2. Will-Reply
    November 23, 2014 at 7:05 pm

    More and more these days this sort of stuff is taken into consideration when companies are bidding for work. Although it is a positive start, I believe it requires a coordinated effort across the world before we can see any tangible results

Leave A Comment