Corporate Social Responsibility (CSR)

 



Corporate Social Responsability (CSR) is a management concept where companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.

CSR allows both large and small businesses to make a positive change in the world. When companies choose to do what is right not only for their bottom line but also benefit financially while building trust with consumers.

General undersanding of CSR reprsents 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.

 

Promoting the uptake of CSR amongst SMEs requires approaches that fit the respective needs and capacities of these businesses, and do not adversely affect their economic viability.

ICDO’s CSR programme which has proven to be a successful tool for SMEs in the developing countries to assist them in meeting social and environmental standards without compromising their competitiveness. The ICDO’s approach is used as a framework for measuring and reporting corporate performance against economic, social and environmental performance. It is an attempt to align private enterprises to the goal of sustainable global development by providing them with a more comprehensive set of working objectives than just profit alone.

The perspective taken is that for an organization to be sustainable, it must be financially secure, minimize (or ideally eliminate) its negative environmental impacts and act in conformity with societal expectations.

 

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.

For more information about CSR and ICDO’s approach and activities please contact us at: info@icdo.at