Businesses do not exist in isolation of their immediate community and beyond, they create products and services to serve their needs for the purpose of profit making.
Explore our related content Corporate responsibility CR is concerned with the sustainability of an organisation over the long term. At its core, corporate responsibility seeks to add value to an organisation's activities by ensuring they have a positive impact on society, the environment and the economy.
The traditional model of CR includes the workplace, marketplace, community and environment. The factsheet discusses why corporate responsibility matters and highlights the role of HR in putting it into action.
Factors and mechanisms influencing corporate responsibility include law and voluntary measures, partnerships with external agencies, and social and environmental reporting.
The factsheet also provides an overview of current debates surrounding corporate responsibility, examining both its proponents and opponents. It concludes by offering a set of guidelines for introducing a corporate responsibility strategy, which are especially pertinent to employers and HR practitioners.
Log in to view more Log in to view more of this content. If you don't have a web account why not register to gain access to more of the CIPD's resources. Please note that some of our resources are for members only. HR professionals, therefore, have a central role to play in getting buy-in across the organisation and embedding good practice to ensure that CR becomes fully integrated across the organisation.
Successful CR strategies depend on building meaningful relationships with a range of stakeholders. In order to be effective, CR must be seen as a form of strategic management, encouraging the organisation to scan the horizon and think laterally about how business relationships contribute long-term to both the bottom line and its reputation in a constantly changing world.
We also believe that taking a principles-based approach to decision making gives significantly more leverage to embedding business ethics. But ultimately, it is action, not models, plans or rhetoric, which is the key to all stakeholders maintaining trust in an organisation.
At the CIPD, we've translated our commitment to CR into action in various ways including setting up cross-organisation groups to make progress on our diversity and inclusion agenda, offering work experience placements to young people from the local community, and introducing a number of green initiatives to help minimise our impact on the environment.
What is corporate responsibility? These two factors are intrinsically linked, as a business that damages the systems on which it depends will ultimately be unsustainable. Value creation is not only a matter of finances. Indeed, the traditional shareholder value approach to business, and the short-termism that often goes with this, are central reasons for the global economic crisis and numerous environmental and other ethical corporate disasters - we look briefly at social value creation below.
Committing to CR means looking carefully at an organisation and the full range of its stakeholders, attempting to maximise the positive impact of operations and minimise any negative effects. Areas of corporate responsibility CR initiatives fall into four main areas: Why does corporate responsibility matter?
The need to focus on CR has become increasingly apparent over recent decades. There has been sustained attention on environmental disasters, poor labour standards and the responsibility that consumers and companies in developed countries have for global value chains.
Equally, reckless lending and opaque financial transactions were clear contributors in the recent global financial crisis. As a result, businesses are witnessing increasing demands from statutory bodies for detailed information about their corporate standards.
At the same time, the widespread loss of trust in business means a genuine focus on CR is crucial for restoring and maintaining consumer and investor confidence. CR is not a luxury that can be avoided but a necessity that has grown in importance through the global recession.
See our factsheets on employer brand and employee engagement for more on those topics.Today, benefit corporations add the legal duty of companies to achieve profits while also focusing on socially responsible activities — also known as Corporate Social Responsibility (CSR).
Corporate Social Responsibility By Barbara Mroz Gorgon - The main subject introduced in this article by Barbara Mroz-Gorgon is a challenge the modern companies have to undertake when approaching and implementing innovations on the basis of Corporate social responsibility as a response to dynamic changes of market environment.
Dec 30, · Corporate social responsibility (CSR) is no longer an obligation that corporations feel they need to take on, but has become central to the operations of many of the best companies today.
The types of corporate social responsibility typically align with the stakeholder theory that corporations have responsibilities beyond profit.
Environmental Responsibility. Harvard professor and business theorist Michael Porter notes in his seminal text, "On Competition," that businesses need to operate in ways that are not “environmentally.
Additionally, Target’s Corporate Responsibility Report is the most transparent corporate responsibility report we’ve ever released. It represents the first time Target declared a GRI Application Level and obtained a GRI Application Level Check.
Business ethics, corporate social responsibility and corporate governance: a review and summary critique 4) to explain why the three movements seem yet to have generated little in the form.