Corporate Social Responsibility, or CSR, means companies aligning their values with a greater good and taking action to have a positive effect. They often do so through “cause marketing,” joining forces with non-profit organizations and focusing advertising campaigns on those philanthropic relationships. Corporate social responsibility is about the integration of social, environmental, and economic considerations into the decision-making structures and processes of business. It is about using innovation to find creative and value-added solutions to societal and environmental challenges. It is about engaging shareholders and other stakeholders and collaborating with them to more effectively manage potential risks and build credibility and trust in society. It is about not only complying with the law in a due diligent way but also about taking account of society’s needs and finding more effective ways to satisfy existing and anticipated demands in order to build more sustainable businesses. Ultimately, it is about delivering improved shareholder and debt holder value, providing enhanced goods and services for customers, building trust and credibility in the society in which the business operates, and becoming more sustainable over the longer term. Each company or organisations have their own way of giving back to the society. For example every Sunday I watch a program on Citizen TV called Omo pick a box. This program was mainly created to give back to the society for being loyal clients to Unilever by buying their famous washing powder called Omo since it was introduced. Other organisations like ORIFLAME a cosmetic company- which I subscribe to, has given back to the community by building a clinic and now an IT college is under construction in a small town in Kenya. As much as many companies are now embracing the need to participate in the CSR’s, many more are still lagging behind when it comes to giving back to the society. Corporate social responsibility may come across as a highly idealistic endeavour but it actually produces highly favourable and observable results. Recent research studies reveal that companies that are perceived by the public to adopt more socially responsible business practices and ethics are more likely to perform financially better than those companies which don’t. So why should companies engage in social corporate responsibilities? Practitioners of Corporate Social Responsibility gain better reputation and brand image in the process. Enhance employee relations that yield better results respecting recruitment, motivation, retention, learning and innovation, and productivity. A better reputation in business often translates into better sales and more investors. Customer loyalty also increases in the process. It is the best way to make the environment sustainable and available for future generations. Stronger financial performance and profitability through operational efficiency gains with responsible corporate citizenship, wealth begets more wealth in the process. CSR can make you more competitive and reduces the risk of sudden damage to your reputation (and sales). Improved relations with the investment community and better access to capital as investors recognise this and are more willing to finance a company. Generally defined, corporate social responsibility (CSR) refers to linking business decision-making to ethical values, compliance with legal requirements, and consideration for people, communities and the environment. The World Economic Forum (WEF) describes CSR as the manner in which a company manages its economic, social and environmental relationships, and the way it engages with its stakeholders, employees, customers, business partners, governments and communities has an impact on its success. As such, CSR is a guiding tool for companies that wish to contribute to the sustainable development of communities where they live, work and impact. It has been identified by industry experts worldwide as the path towards sustained profit growth for the company and creation of long-term value for its stakeholders. On the other hand, it builds reputation, trust and employee morale, each of which represents an ever-increasing part of the value of a company in today’s fast changing world. Ends
