What does corporate social responsibility mean?
Posted: Sun Dec 22, 2024 4:21 am
The social dimension of ESG is inextricably linked to the concept of corporate social responsibility. The idea is that companies take into account social interests in their operations and whatsapp number in australia refers to how the company affects the people in its environment . Specifically, these are stakeholders that include: employees, customers, suppliers or local communities.
By taking into account social criteria, companies contribute to creating the right conditions for sustainable economic and social development. Thus, it can be said that corporate social responsibility is a concept that involves taking into account the relationship between two spheres - business and society - so that the organization is responsible for the impact of its decisions and actions in the aforementioned area.
CSR and corporate social responsibility
It should also be noted that social ESG criteria should not be equated with the concept of RSE (Corporate Social Responsibility). Although at first glance the two ideas seem similar, there are differences. Although CSR also indicates the importance of corporate social responsibility, it is not standardised or formalised in any way. In practice, companies often undertake ad hoc charitable activities, mainly to warm up their image. Social ESG standards, on the other hand, require a company to integrate its social policy into the company's business strategy and provide measurable data in this regard as part of its ESG reporting.
Key areas of social responsibility
Considering the impact of companies on society may seem like a very broad and cumbersome topic. In practice, it boils down to a series of areas suggested by the various regulations on the subject. These include:
Working conditions refer to the rules and practices in the workplace that are intended to provide employees with a safe, healthy and conducive work environment. This includes physical working conditions as well as aspects such as remuneration, working hours, employee rights and opportunities for professional development.
Occupational health and safety - focuses on minimising workplace risks and preventing work-related accidents and illnesses. Businesses must use appropriate protective measures, provide regular training and comply with rules and regulations to ensure a safe working environment.
Workforce diversity and inclusion - means actively promoting the hiring of a diverse workforce in terms of gender, age, race, sexual orientation, religion, and other characteristics. Companies should strive to create a work culture where all employees feel accepted and respected, and where diverse perspectives are valued.
Development and training - refers to investing in the professional development of employees through various training programs, mentoring, courses and other forms of education. The goal is not only to improve employees' professional skills, but also to support their long-term development and job satisfaction.
Human rights - in the business context, these refer to respecting and protecting the fundamental rights of workers and the communities with which the company deals. Companies must comply with regulations on forced labour, child labour, discrimination and other forms of human rights violations.
Community Relations – focuses on the company’s interactions with the local communities in which it operates. This includes participation in community projects, consultation with local residents, investment in local infrastructure and efforts to minimise the negative impact of the company’s operations on the environment.
Impact on consumers and end users - refers to a company's responsibility for the quality, safety and ethical aspects of the products and services it offers to customers. Companies must ensure that their products meet strict safety standards, comply with the law and respond to consumer needs and expectations in an ethical and transparent manner.
By taking into account social criteria, companies contribute to creating the right conditions for sustainable economic and social development. Thus, it can be said that corporate social responsibility is a concept that involves taking into account the relationship between two spheres - business and society - so that the organization is responsible for the impact of its decisions and actions in the aforementioned area.
CSR and corporate social responsibility
It should also be noted that social ESG criteria should not be equated with the concept of RSE (Corporate Social Responsibility). Although at first glance the two ideas seem similar, there are differences. Although CSR also indicates the importance of corporate social responsibility, it is not standardised or formalised in any way. In practice, companies often undertake ad hoc charitable activities, mainly to warm up their image. Social ESG standards, on the other hand, require a company to integrate its social policy into the company's business strategy and provide measurable data in this regard as part of its ESG reporting.
Key areas of social responsibility
Considering the impact of companies on society may seem like a very broad and cumbersome topic. In practice, it boils down to a series of areas suggested by the various regulations on the subject. These include:
Working conditions refer to the rules and practices in the workplace that are intended to provide employees with a safe, healthy and conducive work environment. This includes physical working conditions as well as aspects such as remuneration, working hours, employee rights and opportunities for professional development.
Occupational health and safety - focuses on minimising workplace risks and preventing work-related accidents and illnesses. Businesses must use appropriate protective measures, provide regular training and comply with rules and regulations to ensure a safe working environment.
Workforce diversity and inclusion - means actively promoting the hiring of a diverse workforce in terms of gender, age, race, sexual orientation, religion, and other characteristics. Companies should strive to create a work culture where all employees feel accepted and respected, and where diverse perspectives are valued.
Development and training - refers to investing in the professional development of employees through various training programs, mentoring, courses and other forms of education. The goal is not only to improve employees' professional skills, but also to support their long-term development and job satisfaction.
Human rights - in the business context, these refer to respecting and protecting the fundamental rights of workers and the communities with which the company deals. Companies must comply with regulations on forced labour, child labour, discrimination and other forms of human rights violations.
Community Relations – focuses on the company’s interactions with the local communities in which it operates. This includes participation in community projects, consultation with local residents, investment in local infrastructure and efforts to minimise the negative impact of the company’s operations on the environment.
Impact on consumers and end users - refers to a company's responsibility for the quality, safety and ethical aspects of the products and services it offers to customers. Companies must ensure that their products meet strict safety standards, comply with the law and respond to consumer needs and expectations in an ethical and transparent manner.