Corporate Social Responsibility
Corporate social responsibility (CSR) is a business strategy that refers to the intersection of profit and providing social value. This positive way of doing business is becoming more and more used by customers, investors, employees, and CEOs alike.
Just a few decades ago, most corporations focused on doing good solely to improve their reputation, or only donated massive sums of money to build hospitals, schools, and community centers. However, now companies realize CSR is becoming a more nuanced tool. Companies that pursue social impact practices as an integrated part of their business strategy see not only more employee satisfaction, but increased consumer and investor engagement. More Fortune 500 companies are boosting their bottom lines and their benevolent best practices. It’s becoming clear that regardless of the company or industry, there is a place for CSR principles.
Types of CSR:
Diversity, Equity & Inclusion - making sure that a company is equitable, inclusive, and fair to all employees and stakeholders, and that the same people are educated about the same issues
Supply Chain - ethical practices with vendors and suppliers, guarding against human trafficking, child labor, and unfair employee treatment
Environmental/Sustainability - reducing urban footprint, pollution, greenhouse gas emission, water consumption, and waste while increasing renewable energy, recycling, and sustainable resources and offsetting their impact by planting trees, funding research, and donating to related causes
Employee Engagement - giving, volunteering, and engaging people in do-good campaigns often leads to higher employee satsifcation
Corporate Philanthropy - strategic donations to organizations, often aligning with the company’s core values, purposes, or competencies, often in the form of money, grants, or products
Governance - following legal and ethical requirements to give back, which can vary widely by the industry
Examples of CSR:
Google has donated over $353 million in grants worldwide, supporters Girls Who Code and many educational initiatives, and earns the top spot for the company with the best perception for ‘workplace’ by treating its employees well
LEGO pledged to reduce its carbon impact by becoming a World Wildlife Fund Climate Savers Partner and by 2030 plans to use environmentally friendly materials to produce all product and packaging
Salesforce employees have logged more than 5 million volunteer hours, and the company has donated more than $406 million in grants and given to more than 40,000 nonprofits and education institutions
Ben and Jerry’s became a certified B corporation in 2012, reaching the highest standards of purpose, social and environmental performance, transparency, and accountability and founded the Ben & Jerry’s Foundation to support grassroots moments that drive social change
Levi Strauss pushed for a more equitable supply chain by announcing its Worker Well-being initiative in more than 12 counties and with more than 100,000 workers
Why it matters:
Approximately 90 percent of companies found on the S&P index published a CSR report in 2019, as opposed to about 20 percent in 2011
77 percent of consumers and 73 percent of investors state that CSR efforts influence their purchasing and investment decisions.
More than 90 percent of Millennials would switch brands to one associated with a cause
A majority of American consumers believe it’s important for companies to take a stand on key social, environmental, and political issues
What the Ballard Center Can Do
Not only does the Ballard Center for Social Impact offer a class solely dedicated to learning about CSR, but we also offer a CSR section of our on-campus internships! Students in our CSIP class have partnered with Microsoft, Walmart, Cisco, other major companies working on their efforts to drive profit with purpose. Our student teams have delivered superior analysis and results each semester.
If you are a student or potential partner interested in CSR, please considering applying on our website.