Sense and Sustainability
Are you sustainable?
Do you know the importance of a “CSR” Strategy?
The World Business Council for Sustainable Development defines Corporate Social Responsibility as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. Corporate social responsibility (CSR) has become one of the standard business practices of our time. For companies committed to CSR it means an enhanced overall reputation – a powerful statement of what they stand for in a business world. However, most companies in the Middle East do not understand what the real meaning of corporate social responsibility (CSR) is, they keep mixing up between community service and CSR. Companies have different definitions for CSR; some call it a must to grow, some say it’s a commitment to serve the community and some see it as charity work. I see CSR as the commitment to contribute positively to our society.
An organization's image is often evaluated by its social responsibility programs, and how aware consumers are of them. Consumers may refrain from doing business with a corporation if there existed no corporate social responsibility plan. If a company is heavily involved in the practice of donating funds or goods to local nonprofit organizations, special needs children, and schools, this increases the probability that a consumer will use their product, and if a corporation takes great care to ensure the materials used in its products are environmentally safe and the process is sustainable, this goes a long way in the eye of the public.
The stakeholders interest is in knowing the activity of the company, such as what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce, and also the financial analysts who are the mainly focused - as well as past financial performance - on quality of management as an indicator of likely future performance.
But as with any process based on the collective activities of communities of human beings (as companies are) there is no 'one size fits all'. In different countries, there will be different priorities, and values that will shape how business act.
Why Companies Should build CSR Activities
Retains Employees and Builds a Positive Work Environment
Employees are the most important asset to a company and CSR is increasingly becoming more vital in attracting and retaining top talent employees. CSR programs give people a sense of pride in the organization, engender teamwork and are a source of inspiration and connectedness, and most importantly, it’s about “doing” rather than just “giving”. One of the greatest benefits of promoting social responsibility in the workplace is the positive environment you build for your employees. When employees and management feel they are working for a company that has a true conscience, they will likely be more enthusiastic and engaged in their jobs. This can build a sense of community and teamwork which brings everyone together and leads to happier, more productive employees.
Savings and Profit
One of the easiest places for a company to start engaging in sustainability is to use it as a way to cut costs. Whether it’s using less packaging or less energy, these savings add up quickly, saving energy as example and it’s a way to increase the company profit.
Media exposure
The amount of positive media coverage a corporation receives can have a significant impact on the company’s bottom line. How much good a company does in its community or beyond reflects its corporate social responsibility values. And the more positive the benefits to the community, the more media coverage a company will likely receive.
Stakeholder Loyalty
When you identify your stakeholders, their needs and their expectations, and you make genuine commitments to do them more good and less harm, they respond by making greater commitments to you. These companies can ask for more from their employees, customers, and investors. And they get it. When they make mistakes, which happens inevitably, they are more readily forgiven.
Build reputation and brand
An association's CSR and sustainability program demonstrates the sector’s commitment to sustainable practices and leadership. It can build positive stakeholder relationships with customers, communities, NGOs, suppliers and others. In doing so, it enhances the sector’s social license to operate and grow. Before you rush into your own corporate social responsibility program remember, you must implement your program strategically. Just giving a donation is not enough. The best CSR programs are based on a two-way relationship with you and each of the organizations and the society you are involved with. This allows both parties to be challenged and grow together. Your CSR commitments should be in line with the values of your company, customers and staff. Most importantly, they must be based on a genuine concern for people and the community. You do not want the program to back-fire; making you seem hypocritical. A poor strategy will cause people to become cynical and distrustful of your company.
Twitter, Instagram, FaceBook, LinkedIn: @khalidalqoud or khalidalqoud@gmail.com