Corporate social responsibility (CSR) refers to the actions that a company takes to make sure that the company is engaging in or supporting volunteering or ethically oriented practices. It involves generating a positive impact. It is a type of business initiative that shows that a company meets specific environmental, social, and ethical goals.
Most commonly the corporate social responsibility of a firm is broken into four types.
Economic corporate responsibility
This practice improves a firm’s economic operations and at the same time gives something back to the community like a changed or improvised method of producing something that is not only more efficient but also helps to minimise wastage. One of the most common (and one that every company should follow) economic responsibilities is when a company commits to a transparent salary system that fairly compensates all employees (past gender and race) equally.
Environmental Corporate Responsibility
The environmental corporate responsibility of a company is engagement in environmentally friendly practices by being significant contributors to greenhouse gas emissions, pollution, waste, and natural resource depletion. An organisation’s commitment or preference to sustain the environment, minimize their wastage or sustainable use of natural resources. find new ways of producing their product that does not harm nature, which of course should be everyone’s priority.
Human Rights Corporate or Ethical Responsibility
A company is ethically responsible when it engages in fair business practices. This means treating all employees, stakeholders, and customers with respect, taking care of their employees with their pay and comprehensive benefits, and not allowing child labor of any kind. A company’s commitment to this practice ensures fair treatment against any type of gender or racial discrimination.
Philanthropic Corporate Responsibility
Philanthropic corporate responsibility means an organisation’s goal to be included in the betterment of society, either by donating money or organising a trust or a foundation that does it. Big-scale companies take part in it by donating a percentage of a business’s annual earnings to a prominent cause. An organisation’s leadership speaks volumes when its resources are used for the cause of making the world a better place.
Corporate social responsibility has much more to it when looked at it with a good insight. It gives back more than it takes but it is also great for brand identity as it helps gain customer trust and public respect.
