{"id":31354,"date":"2019-11-28T10:49:58","date_gmt":"2019-11-28T02:49:58","guid":{"rendered":"https:\/\/zegal.com\/?p=31354"},"modified":"2024-12-27T18:06:56","modified_gmt":"2024-12-27T10:06:56","slug":"why-you-cant-ignore-csr-in-your-business","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-sg\/blog\/post\/why-you-cant-ignore-csr-in-your-business\/","title":{"rendered":"Why is CSR important for Businesses?"},"content":{"rendered":"
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What is CSR?<\/span><\/h4>\n

Corporate social responsibility, or CSR<\/span>, is something<\/span> I first learned about in school over a decade ago. Back then, our business class teacher made CSR seem like something <\/span>good<\/span> <\/span>companies<\/span> would engage in. Something outside the norm of the ruthless profiteering and environmental pilfering by multinational conglomerates. Perhaps CSR was emerging as a fad back then. But in today\u2019s world\u2014a world I might add that is mere weeks away from the beginning of this millennium’s third decade\u2014any business would be idiotic to ignore their social responsibilities to its customers and the planet.\u00a0<\/span><\/p>\n

In a nutshell, CSR is \u201cinternational private business self-regulation\u201d\u2014or soft law. The concept revolves around the idea of creating shared value for its shareholders in such a way that the society at large, and planet, can also benefit from the value stemming from the business succeeding. Key features of a CSR should account for things such as: environmental sustainability; conformity to human rights; decent employment conditions; and ethical business practices. <\/span><\/p>\n

It\u2019s a vital part of any modern business today. Here are some tips on why it matters more now than ever and what a company\u2019s policy on corporate social responsibility should include.\u00a0<\/span><\/p>\n

Why CSR matters<\/span><\/h4>\n

It pains me to admit that CSR is not in the slightest bit altruistic. I really wish it was, but the raving cynic in me refuses to believe that most businesses would sacrifice their profit margins to benefit the survival of the planet. Or anything else benevolent for that matter. Such altruism cannot be expected from the mortals running businesses that have the ultimate goal of maximising profit. Most (not all) Fortune 500 companies and any sizeable corporations that have in place a policy promoting corporate social responsibility, do so for one reason only. That reason is they absolutely will lose money and customers if they don’t.\u00a0<\/span><\/p>\n

In 2017, 63 percent of the largest 100 companies, and 75 percent of the Global Fortune 250 reported applying the GRI reporting framework, a voluntary report<\/span>ing system<\/span> on sustainability. CSR is mainstream and if you don\u2019t know what it is, you\u2019re late to the party.\u00a0<\/span><\/p>\n

Consumers are increasingly more aware of unsavoury business practices that adversely affect the society and environment they live in. Especially those in their 20s that adhere to the notion of collective responsibility. This generation is savvy to their ever-increasing power over what they choose to buy and who they buy it from. I know, I’m one of them. Being responsible is cool. I can attest to the fact that my friends, myself, and basically everyone I know in my age group, are incredible conscious about sourcing even the most mundane of products. <\/span><\/p>\n

These are the types of people modern corporations must cater to. Forget what that dinosaur Milton Friedman said about how a company\u2019s sole purpose is to maximise profits for its shareholders. Okay, boomer. And hashtag side eye while I’m at it.<\/span><\/p>\n

By The Numbers: This Is What It Looks Like Now<\/h4>\n

According to a study on younger consumers (2017, Cone):<\/span><\/p>\n

Younger consumers may not even know what CSR is, but they care more about what the <\/span>concept of CSR espouses than any other age group of people.<\/span><\/p>\n