The Masterminds 🧠

WELCOME TO THE MASTERMINDS HOMEPAGE

 

Who are we?

The Masterminds are a talented team of management students here to present you with the 411 on current OB topics. Our team is comprised of: Imani Hawkins, Ashley Hernandez, Whitney Sanders, Destiny Lewis, Alexis Walker, and Melvin Morales.

 

 

 

 

The Masterminds OB Spotlight:

CORPORATE SOCIAL RESPONSIBILITY (CSR)

 

 

 

 

 

What is Corporate Social Responsibility?

Corporate Social Responsibility (CSR) is a voluntary practice by corporations to help satisfy society’s environmental, ethical, philanthropic, and economical demands. The goal of CSR is to bridge the gap between a company’s business goals and the needs of their consumers in an effort to make a profit. It has become increasingly popular with time, but there is no legal obligation for companies to participate in this movement and the caveat of society’s demands is that they are constantly changing. Which springs up a level of uncertainty when it comes to creating a permanent definition of CSR. 

However, the nature of CSR has stayed the same. Howard Bowen is known as the father 

of the concept of businesses having social responsibility including it in his publication of Social Responsibilities of the Businessmen. 

 

 

“the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society” 

(Agudelo, 2019)

 

How has CSR Evolved?

Corporate Social Responsibility has evolved because the needs of society have changed over time, increasing the level of responsibility demanded from corporations. In the 1930s-1940s CSR was first introduced into American literature. In an effort to do “what was right” and help the impoverished, companies started to promote social reform. In the 1960s the civil rights movement forced companies to choose a side in legal, racial, and human rights. For example, Coca-Cola was among the few who took the responsibility of supporting Reverend Martin Luther King Jr when white Atlanta elites wouldn’t. The 1970s oil spill in Santa Barbara shaped the environmental needs of society and sparked the annual Earth Day celebration. The 1980s was the decade where companies started to implement CSR into the foundation of their business and now businesses are strategically using CSR to brand and promote their companies. Performing Corporate Social Responsibility can create a better image for the company and can expand their brands due to the high visibility of their actions.It can also strengthen the relationship with their customers and ensure loyalty and commitment from them. Considering, the true determiners of the scope of corporate social responsibility are the people. They push the standard of what they expect from these corporations and demand them to change with the time.

 

What Are the Benefits of CSR?


CSR is a performance driver that involves economic progress, social justice, philanthropic needs, and environmental sustainability. Essentially, consumers are using their buying power as leverage for change. It is beneficial for society because these efforts are financially backed by multi-million and multi-billion dollar companies in an effort to improve our society. CSR has become the catalyst for major societal advancements, because companies have more power than one individual. They can assemble employees, investors, and volunteers to speed up the efforts of small groups. CSR not only benefits the public, but corporations are incentivized to involve themselves in this movement. By actively participating in CSR efforts companies get better brand recognition. Customers tend to engage more, leading to customer loyalty and increases company revenue. Companies that engage in CSR behaviors have higher employee satisfaction, because people want to be part of an organization that fulfills their moral values. They also gain public trust and set themselves apart from their competitors. 

 

How Do I Implement CSR into My Business?

As CSR continues to evolve corporations have implemented the different aspects of CSR into their business models. This is called Strategic Corporate Social Responsibility and its purpose is to encourage long-term commitment to the public. CSR requires team effort and encourages innovation and builds a stronger connection between employees, suppliers, and customers . CSR holds everyone responsible for the evolution of our society. Through individual and collective obligations. 

Here are some ways that the different aspects of CSR are implemented into the workplace:

Economic: Economic responsibility refers to a firm’s financial commitment to do good in all the other aspects of CSR. 

  • The goal of economic responsibility is to maximize profits while maintaining positive impacts on the environment, people and society.  It is the pillar of corporate social responsibility.

Environmental: Environmental responsibility refers to the organization’s commitment to sustainability and preservation of our planet.

Three ways companies can practice environmental responsibility:

  1. Choose to distribute their goods consciously by choosing practices that have the least impact on pollution and greenhouse gas emissions. 
  2. Counterbalance the impact of pollution and greenhouse emissions by planting trees and supporting causes that offset negative environmental impacts.
  3. Regulate their energy consumption by using sustainable resources, recycled or recyclable materials, and promoting reduce, reuse, recycle practices with their consumers. 
  • Environmental responsibility is one of the most common forms of corporate social responsibility. Such initiatives are referred to as “environmental stewardship” by some companies.

Ethics: Ethical responsibility is the corporation’s dedication towards being fair to all people. 

  Three ways companies can practice ethical responsibility:

  1. Commit themselves to paying employees fair wages and providing good working conditions. 
  2. Pledge to avoid getting supplies from manufacturers who enslave people or exploit children.
  3. Create and enforce policies that detour the acts of discrimination and mistreatment towards marginalized groups.

Philanthropic: Philanthropic responsibility is the choice of firms to actively help in the improvement of our society

  Three ways companies can practice philanthropic responsibility:

  1. Donating earnings to charities and organizations that align with business missions.
  2. Creating charities that help create forward mobility for positive social agendas.
  3. Being active in local community events

     

     

How Have Other Businesses Implemented CSR Practices?

 

“In the 1940s, with the fallout of World War 2, companies like Hormel, known for producing Spam, did their part for social good by working closely with the government through the Lend-Lease progr

am, which provided much-needed food supplies for those affected by the war”( Stirling, 2019)

 

 

Founded in 1978, Ben and Jerry’s is among the pioneers of implementing CSR into their business model. They have committed to promoting economic, social, environment, and ethical agendas that align with their mission.     

 

 

 

Established in 1886, Coca-Cola has many CSR agendas from, conserving water, reducing carbon emission, and being sustainable. They are major influencers in the CSR movement for big corporations.

 

 

 

What Are the Biggest Trends in CSR?

Post-pandemic life has dramatically changed how corporations go about their business. This shift has particularly changed the area of corporate social responsibility. A major shift in CSR comes in the form of volunteerism. Volunteerism has long been a staple in CSR culture for its overwhelmingly positive outcomes – increased employee engagement, increased brand reputation, etc. Post pandemic, volunteerism has seen significant shifts in virtual engagement. A stronger implementation of technology throughout the pandemic has allowed for more volunteering opportunities. Social media has also helped to grow the awareness of volunteering activities. This increase in volunteering opportunities gives firms an advantage over other businesses that may put their focus elsewhere. The uptick in virtual volunteerism is a trend that will continue to gain traction in the coming years and is worth implementing in any business, especially those looking to boost their corporate social responsibility.

 

Why is CSR So Important in 2023?

As we are in the height of a recession, 2023 is the year to put corporations and their corporate social responsibility initiatives to the test. At a time where prices are rising and budgets are stretching, all eyes are on firms to see how closely they really hold their values. Typically, in times of economic downturn, CSR programs are some of the first to see cuts, which can be discouraging to consumers in a time where business ethics are more crucial than ever. Studies show that millennials and gen z place a much higher emphasis on corporate responsibility than older generations, and they tend to put their money towards companies that express genuine connections and care for their customers and communities.

 

The Harvard Business Review suggests 4 reasons why efforts towards corporate social responsibility are worth keeping around:

  1. employees want to work for caring companies
  2. customers want to purchase from caring companies
  3. investors form decisions based upon corporate actions and purpose
  4. corporation reputations are linked to CSR.

These reasons highlight the importance of the commitments made by a company and their ability to carry them out successfully, especially in times of economic hardship.

 

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