In a world where both humanitarian and economic crises are rife, and inequalities within society overwhelm our political discourse, social responsibility has never been more important. Social responsibility is an ethical framework which maintains that individuals have a civic duty to act for the benefit of society at large. Consumers increasingly wield their purchasing power to shy away from fast fashion or other unsustainable practices they feel the need to distance themselves from. This, in turn, forces companies to adapt their own practices to retain their customers. As both customers and investors are willing to pay a premium for socially responsible services, retail and corporates are often forced to re-evaluate their business strategies. Take for example the rise of veganism and the ‘Veganuary’ initiative – several fast food companies such as KFC incorporated this into their regular menus, stating both ethical and environmental benefits.
Corporate social responsibility: an introduction
Corporate social responsibility (‘CSR’) is a company’s commitment to holding itself accountable to its employees, shareholders, and the general public. CSR is often undertaken by large, influential corporations who are able to give back to society. There are several reasons, other than altruism, for companies to invest in CSR – bolstering their brand and image, and boosting employee morale and productivity, rank among them. In addition, over the past decade, CSR has gone from being the choice of a select few companies to a regulated responsibility for all.
Types of CSR
CSR leverages corporate resources to advance environmental, philanthropic, and ethical objectives.
Environmental CSR attempts to limit a company’s adverse impacts on the environment. This can focus on a wide range of issues, from renewable energy to air miles generated from corporate travel. However, the vast majority of corporations tend to focus on reducing their greenhouse gas emissions and waste output. For example, MNC Starbucks has long been committed to sustainability: they aim to halve their carbon output by 2030 and have committed to ensuring 99% of their coffee is ethically sourced. That sustainability plays a large part in the Starbucks brand is evident from its stores and advertising campaigns. The Starbucks experience, therefore, includes more than a good cup of coffee – customers can also take pride in giving back to the environment.
In contrast, corporate philanthropy is the act of a company directly giving back to a cause through donations of money or time. Strategies include matching employee donations to certain charities, encouraging paid volunteering leave, and investing in communities by offering scholarships and grants. Companies often hire in-house departments to manage these initiatives, and they, too, reap the benefits. Philanthropy fosters a more positive working environment since employees feel they are actively able to impact the world around them positively. A prime example of corporate philanthropy is Google – they have invested $100m into grants and social initiatives, and allow employees up to 20 volunteering hours in their communities. In addition, all donations between $50 and $12,000 are matched at a 1:1 ratio. The company’s unofficial motto, ‘Don’t be evil,’ underpins all its activities, demonstrating that it is possible to be a highly successful company whilst also committing to social development.
Finally, ethical CSR is the commitment to ensuring that all stakeholders in a company receive fair treatment. This includes guaranteeing ethical standards at all levels of the supply chain, from avoiding the exploitation of small-scale suppliers, to providing safe working conditions for labourers. Ethical CSR can be challenging to enforce. However, if a company is revealed to be unethical, it can be hugely detrimental to their brand – the majority of companies, therefore, consider it. Cosmetics company Lush is a prime example of ethical CSR – they regularly campaign against animal testing and have strongly advocated against child labour. Sustainability for all stakeholders is one of their core values, and this is clearly reflected in the branding of their products. Why shop at Clinique – a brand that is not yet cruelty-free – when you can buy a similar product from Lush, without hurting a single living thing?
Beyond corporations: how does social responsibility apply to individuals?
Social responsibility has long been associated with corporations. However, I feel that, as individuals, it is our duty to act in a socially responsible manner. Mahatma Gandhi’s ‘Be the change that you wish to see in the world’ has never felt so urgent. I recently launched The Crisis Project, a non-profit initiative aiming to create a community of changemakers. Despite the timing of our launch, the aforementioned ‘crisis’ is not the coronavirus pandemic – it is clear to me that there is always a crisis occurring somewhere in the world, and that, as individuals, our work does not end until equality is achieved. The Crisis Project is an umbrella organisation under which we run various small-scale projects that harness the power of real action to initiate social change.
Our flagship project, Letters For The NHS, was an instant success. Within the first month, we had 500 volunteers writing bespoke letters of support to key workers via our platform. The project was featured on BBC and Sky Radio, ITV News, The Evening Standard, The Huffington Post, Time Out Magazine, and various other news outlets. We are now looking to expand into other community projects and extend our reach. ‘Action’ underpins all that we do at The Crisis Project – it is not enough to repost a photograph or change a profile picture in solidarity with a movement. We encourage our community to stand up – passion for a cause must translate into action.
In recent months, Gen-Z has demonstrated their propensity to act and fight for their beliefs through the Black Lives Matter movement. As this generation enters the workforce, CSR will be demanded of corporations as a basic expectation, rather than an add-on to promote branding or image.
It is clear social responsibility is here to stay. Although 2020 has introduced many new norms, the push for individuals and corporations to act for the benefit of society is one I can firmly stand behind.
