CSR in the Workplace
Employers can adopt corporate social responsibility (CSR) by implementing environmentally sustainable practices, supporting diversity, equality, and inclusion in the workplace, treating their employees with dignity, contributing to the community, and making ethical business decisions. A company’s achievement is not limited to financial gain or brand reputation, but extends to its social and environmental impact.
Flourishing corporations depend on a thriving society. An educated and healthy population, as well as equal opportunities, are crucial for a competent workforce, and providing these fundamental necessities is the primary way to prioritize the individuals within an organization.
Listed below is a variety of ways that companies can implement CSR into the workplace!
Create a set of ethical guidelines for your business
To establish a code of ethics for your business, you need to define a set of principles that will guide the behavior and decisions of your employees. Such a code serves as a moral compass, helping employees understand what is considered right and wrong. Implementing a code of ethics can have various advantages, including better decision-making, increased accountability, and higher employee morale. Moreover, it demonstrates your company’s commitment to ethical business practices, which can enhance customer and stakeholder trust. To fulfill your social responsibility, it’s crucial to implement the code of ethics in your business.
Uphold the health and safety of employees
The biggest obligation of a business is to ensure a secure and healthy working environment. When a company gives priority to a safe workplace, it communicates to its staff that their well-being is paramount. This fosters loyalty and positivity among employees. Moreover, a secure workplace leads to more productivity, as workers are less likely to get distracted or be absent from work. Maintaining a safe work environment can offer many pros to businesses, both monetary and non-monetary.
Be communicative and open with staff
When integrating Corporate Social Responsibility (CSR) into the workplace, companies must ensure transparency in their dealings with both employees and customers. Transparency is crucial for building trust between all parties involved, and this can be done through open communication and accountability for actions. Transparency in the workplace significantly impacts employee engagement, and the absence of it can drive away talented employees in important positions. On the other hand, when employees are satisfied with the company’s honest and transparent communication, it correlates with a happier and more productive workplace. Therefore, companies must show priority when it comes to transparency in order to create a culture of trust and foster a positive work environment for all.
Be involved with the community
The notion of companies solely aiming to generate revenue through their services is no longer acceptable. Instead, companies are expected to act as responsible corporate citizens. To fulfill their social responsibilities, companies must adopt a philanthropic and community-oriented mindset. By prioritizing community engagement, companies can have a positive impact and build relationships with local organizations and residents. This approach can also attract talented employees who want to work for organizations that are socially responsible. Moreover, providing employees with opportunities to volunteer and participate in charitable events can create a more motivated and engaged workforce. Overall, having a community-driven mindset is crucial for companies to commit to their social responsibilities and establish a positive reputation.
Companies and corporations are seemingly beginning to shift the way they view their responsibilities and to whom they are even responsible to. The shift from a profit-only focused prism to the triple bottom line paradigm is one that is increasingly seeing businesses look at the broader scope of what it is that they are required to do. No longer is shareholder capitalism the only business ideology that pervades the markets, but businesses are now looking to make profits in a responsible, sustainable, and ethical manner, one that benefits not just the investor but also the public at large. This idea of stakeholder capitalism or corporate social responsibility (CSR) is often split into two types: internal stakeholders and external stakeholders. According to Saheli Goswami and Gargi Bhaduri (2013), external stakeholders affiliate strongly with corporations that endorse moral responsibilities towards stakeholders. In particular, young consumers note corporations’ morals and sincere commitments to their stakeholders before giving them their business. Similarly, if internal stakeholders believe corporations to have strong moral responsibilities towards the needs and wants of different stakeholders, they tend to prefer such corporations as their potential employers, even with lower compensation. Even if you work for a toy manufacturer knowing that your company is committed to the causes you support could be the difference in your commitment to your employer.
Lego’s Commitment to Sustainability
“As one the most widely recognizable companies in the world, Lego aims to not only help children through their products that foster creative play, but to also help foster a healthy planet. Lego is the first, and only toy company to be named a World Wildlife Fund Climate Savers Partner, making its pledge to reduce its carbon impact. And its commitment to sustainability extends beyond the usual corporate partnerships. By 2030, the toymaker plans to use environmentally friendly materials to produce all of its core products and packaging—and it’s already taken key steps to achieve that goal. Over the course of 2013 and 2014, Lego shrunk its box sizes by 14%, saving approximately 7,000 tons of cardboard. The company has also recently committed to removing all single-use plastic packaging from its materials by 2025 (5 examples of Corporate Social Responsibility: HBS online, 2019).
Responsible Efficiency
Corporate and commercial businesses that have or display their CSR initiative are almost everywhere. There’s no one-size-fits-all model of CSR, any action that a company takes to give back to society can constitute as CSR. Benefits for companies and organizations that participate in CSR initiatives have seen both a direct increase in sales and indirect benefits like brand recognition. According to a study done by McKinsey & Company, many companies are able to generate a better return on capital due to their environmental, social, and governance programs commonly through operational efficiency. This usually presents itself by reducing energy costs, and input costs through sustainable sourcing as well as improving processes. Such efficiencies often require upfront capital investments to upgrade technologies, systems, and products, but returns can be substantial. The challenge for most businesses is that they should enact these CSR programs genuinely with sound strategy just as if they were planning to execute any other business plan/ strategy. Otherwise, they risk being perceived negatively by their stakeholders. As specified by Saheli Goswami and Gargi Bhaduri (2023), this is called Perceived Corporate Hypocrisy. Perceived Corporate Hypocrisy is when stakeholders view corporate actions as contradictory to their communicated values. An example of this situation occurred when Volkswagen promised to produce clean diesel cars to be seen as good environmental stewards yet they were found guilty of manipulating the engines in their vehicles to bypass emissions tests.