Corporate Social Responsibilty

 What is Corporate Social Responsibility

Corporate Social Responsibility is a form of corporate self-regulation integrated into a business model. Its also reffered as "corporate citizenship," which essentially means that a company should be a "good neighbor" within its host community. The goal of Corporate Social Responsibility is to embrance responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities and stakeholder. thus, beyond m aking profits, companies are responsible for the totality of their impact on people and the planet.


Social Objectives Of Corporate Social Responsiblity

They take responsibility for the impacts of its decisions and activities on society, the environment and its own prosperity. They take responsibility for people, as well for planet and profit.They help build brand and reputation, they help strengthen the community and therefore the marketplace.They help creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments.


Examples of Positive Impact of Corporate Social Responsibility

• Strategy: Integrating long-term economic, environmental, and social aspects in their business strategies while maintaining global competitiveness and brand reputation.                                    
• Financial: Meeting shareholders’ demands for sound financial returns, long-term economic growth, open communication, and transparent financial accounting.      

•  Customer and Product: Fostering loyalty by investing in customer relationship management, and product and service innovation that focuses on technologies and systems, which use financial, natural, and social resources in an efficient, effective, and economic manner over the long term.

• Governance and Stakeholder: Setting the highest standards of corporate governance and stakeholder engagement, including corporate codes of conduct and public reporting.

• Human: Managing human resources to maintain workforce capabilities and employee satisfaction through best-in-class organizational learning and knowledge management practices and remuneration and benefit programs.

 Negative Impacts Of Corporate Social Responsibility 

 Negative impacts of Corporate Social Responsiblity is the surrounding natural environmental due to business operations. This impact include: overuse of natural, non-renewable resources of energy, pollution wastage, degeneration of biodiversity, climate change or deforestation.
The environmental impact can be solved by material input per service usit calculations, ecological footprint or by life cycle assessement. 
 

• Ecological footprint: Measures the amount of nature's resources consumed in a given year, and compares it to the resources available in the world

• Life cycle assessement: Used to assess the environmental performance of a product from raw materials in the beginning of the production process all the way to disporsal at the end of use

• The material input per service value: Calculated  by dividing the amount of material the product or service causes to move. For example the amount of earth moved in mining