Corporate Social Responsibility

According to (United Nations industrial development organization, n.d) corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives while at the same time addressing the expectations of shareholders and stakeholders. In this sense it is important to draw a distinction between CSR, which can be a strategic business management concept, and charity, sponsorships or philanthropy. Even though the latter can also make a valuable contribution to poverty reduction, will directly enhance the reputation of a company and strengthen its brand, the concept of CSR clearly goes beyond that.

UNIDO identifies key CSR issues:

·         Environmental management

·         Eco-efficiency, responsible sourcing

·         Stakeholder engagement

·         Labour standards and working conditions

·         Employee and community relations

·         Social equity, gender balance

·         Human rights, good governance

·         Anti-corruption measures

A properly implemented CSR concept can bring along a variety of competitive advantages, such as enhanced access to capital and markets, increased sales and profits, operational cost savings, improved productivity and quality, efficient human resource base, improved brand image and reputation, enhanced customer loyalty, better decision making and risk management processes.

Reference:

What is CSR? (n.d.). Retrieved September 23, 2014, from http://www.unido.org/en/what-we-do/trade/csr/what-is-csr.html