Corporate Social Responsibility is Growing
Corporate social responsibility used to be an option for large corporations to express their intentions to give back to the communities that supports them, whether through the creation of educational programs, or through advocacy of a cause for social reform. Essentially, corporate social responsibility, or corporate sustainability is a company’s way of showing an understanding for the implications of its conduct, and how its operation affects the social, cultural, and environmental atmospheres of its clientele. A company with good self-awareness will see to it that tending to its present needs does not sacrifice its future potential. While CSR used to be an innovative symbol of a company’s pledge to its customers and environment, it is growing to become a crucial must-have policy for all major corporations.
With changing economic tides, fluctuations in the market, environmental pressures, and general uncertainty as to the future of corporate sustainability, a company has to prove itself a contributor to the public good, as much as it is interested in serving its own needs for revenue. Corporations can get in touch with their own needs by developing a sense for their resource management and waste production. Limiting waste, removing unnecessary costs and risks, and increasing employee happiness and productivity are all green approaches to a healthier foundation. As corporations become less single-mindedly involved in their own prosperity, and open up to their communities, they may find customers eager to support them. Wouldn’t you give to a company if you knew it would use your contribution thoughtfully and generously? Why should a corporation produce a product without contributing to its community if it can do both?
Because of ever growing competition, corporations see a new way to entice customers to support them through product purchase by appealing to societal and environmental needs. This allows a consumer to feel as though his purchase is as selfless as the corporation’s sale. In 2002, Peter Thum founded Ethos Water (purchased by Starbucks in 2005) which has since raised over $6 million in funds donated to the development of water and hygiene education programs. Warby Parker followed similarly by pledging to only craft its sunglasses in-house and sell directly to customers, lowering the cost of production, allowing the company to give free and low-cost glasses to those in need. Corporations will suffer if they try to sell products without a greater-serving cause backing their commodities.