CSR means corporate social responsibility. This is about voluntary support for sustainable development by the company.
Sustainable development is the idea to minimize ecological and social damage while considering economic interests.
CSR tries to harmonize the three dimensions (ecological, social, and economic). Among these dimensions there is an interdependence which is the reason why it is important to consider everything together the same:
1. Ignoring social problems, for example, poor working conditions or very low wages can cause property workers and lack of education. This situation reduces productivity due to low personnel performance which has a negative impact on economic and ecological targets.
2. Poor ecological conditions, such as environmental or livestock pollution, can have a significant impact on human health which can also limit the performance of workers. Therefore, a polluted environment has a negative effect on social and economic problems.
1. Because of global warming and social complaints throughout the world, customer, and public pressure force more and more companies to rearrange their companies for sustainability problems.
In general, CSR can be used as an instrument to increase the company’s reputation which is valuable enough for future business success. Especially for brand differentiation, CSR helps separate companies from the competition and develop unique sales propositions (USP).
2. CSR in the company can also have a positive impact on the motivation of company employees. Usually, employees show more involvement if they have a feeling of being part of something good or rather contributing something good to the community/environment with their performance which leads to more productivity.
3. In addition, a good company reputation through CSR is also a way to attract very high-quality personnel who can be a valuable attribute for differentiation.
Why is CSR important?
1. Because you can see CSR has a positive impact on company performance. However, CSR as a form of self-regulation will only work well if every employee in the company tries to follow this concept.
Therefore, CSR must be an important part of the company’s identity to apply the concept successfully.
2. In addition, CSR should not be used as a method for short-term profits. This is a business model that must be based on a long-term strategy.
3. One of the most important aspects is to create credibility and trust. If you do not reach a commitment to sustainable development (for example Global Compact), you will lose credibility and trust.
Safe to say that this has a negative impact on your company’s reputation because customers will feel cheated and avoid buying from you.
What is a CSR strategy?
CSR strategy is a comprehensive plan used by companies and funders to design, implement, and analyze their corporate social responsibility initiatives. This includes specific focus areas, program design, promotion and communication approaches, and evaluation procedures.
Corporate Social Responsibility (CSR) is when the company operates ethically and sustainably and discusses its environmental and social impacts. This means careful consideration of human rights, community, environment, and the community where he operates.
CSR concerns not only the company’s internal process, but also all steps along the supply chain which includes producers, suppliers, wholesalers, retailers, and customers. Make sure that each step of the supply chain also implements CSR.