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Corporate Social Responsibility
Definition
The European Commission's Employment and Social Affairs Committee defines
Corporate Social Responsibility (CSR) as
…a concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with
their stakeholders on a voluntary basis.
There is a large consensus on its main features:
- CSR is a behaviour by businesses over and above their legal requirements,
voluntarily adopted because businesses deem it to be in their long-term
interest.
- CSR is intrinsically linked to the concept of sustainable development
- businesses need to integrate the economic, social and environmental
impact in their operations.
- CSR is not an optional 'add-on' to business core activities - but
about the way in which businesses are managed.
In other words, business success for companies no longer focuses only
on profit and market share. To be successful in today's economic climate
companies have to look at their triple bottom line i.e. not just how they
are performing against economic parameters but also how they measure up
at a social and environmental level.
The Business Case
Research indicates that, over the longer term, companies that rate highest
on ethics, social and economic responsibility are the most profitable.
Examples of how socially and economically responsible companies experience
positive effects by adopting the principles of CSR include:
- Reduced operating costs.
- Enhanced brand and image reputation.
- Increased sales and customer loyalty.
- Increased ability to attract and retain employees.
- Publicity and increased public image from good works.
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Diversity and Business
In today's tight economic climate recruiting and retaining staff has never
been more difficult. Companies face the constant challenge of recruiting
and retaining the most capable people. The quality and loyalty of a company's
workforce is a crucial part of market advantage.
Employers are now recognising that they will have to look to previously
untapped labour pools to meet their staffing needs. On average in Scotland,
there are 3 times as many people claiming Incapacity Benefit as are claiming
Job Seekers Allowance (unemployment benefit). Many of these people, with
assistance from Jobcentre Plus or other local support agencies, could be
brought back into the labour market.
In terms of CSR, managing diversity is increasingly seen as a major factor
in determining efficiency, productivity and overall business success.
People with Disabilities
There are over 8 million people in the UK with some form of disability.
As well as being potential customers, many are also potential employees.
People with Disabilities as Customers
- The purchasing power of people with disabilities is quite considerable.
- Companies who demonstrate that they are accessible to disabled customers
are, at the same time, making themselves more 'attractive' to ALL their
customers.
People with Disabilities as Employees
There is a considerable amount of evidence of the benefits of employing
and retaining people with disabilities:
- Studies have shown that people with disabilities have average or better
productivity rates, attendance records, job retention rates and safety
records. They also tend to stay with an employer longer.
- The majority of people with disabilities do not require expensive,
if any, adjustments to be made. By law employers are only required to
make 'reasonable adjustments'.
- By excluding particular sectors of society as potential employees,
employers can be missing out on a wealth of talent and expertise.
Conclusion
The Disability Discrimination Act (1995) makes it illegal for businesses
or employers to discriminate against customers, employees, or potential
employees, on the grounds of disability.
Companies who can demonstrate that they are taking a proactive approach
to the differing needs of their employees and customers will add value
to their business through improved staff morale and positive customer perception.
However, if they choose the opposite path they can diminish business competitiveness
and efficiency.
For More Information
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Corporate
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