Corporate Social Responsibility (CSR) allows businesses large and small to enact positive change - it’s when companies choose to do what is right not only for their bottom line, but also benefit financially while building trust with consumers.
Consumers feel that when they use a product or service of a socially responsible company, they are doing their part. The more socially responsible the company, the more supportive the community and consumers become.
Corporate social responsibility helps build trust, raise awareness, and encourage social change. Although there are tens of thousands of companies doing their part, large global corporations’ efforts have far-reaching results that can impact major world issues from hunger and health to global warming.
Why Create a CSR Report?
Over the past decade, corporate social responsibility reports—also called CSR reports, impact reports, or sustainability reports—have become more common, a trend that’s predicted to continue (pdf). In fact, 90 percent of companies on the S&P 500 index published CSR reports in 2019—up from 86 percent in 2018, 75 percent in 2014, and only 20 percent in 2011.
So, what is a CSR report? What do quality CSR reports look like, and why do they matter for businesses and society? Here are the answers to these questions and ways you can help craft a CSR report for your organization.
A corporate social responsibility (CSR) report is an internal- and external-facing document companies use to communicate CSR efforts and their impact on the environment and community. An organization’s CRS efforts can fall into four categories: environmental, ethical, philanthropic, and economic.
According to the online course Sustainable Business Strategy, corporate social responsibility is the idea that a business has a responsibility to the society and environment in which it operates. Many businesses striving to be socially responsible use the triple bottom line—an organization’s impact on people and the planet, in addition to its profits—to determine strategic priorities.
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Examples of Corporate Social Responsibility in Action
Corporate social responsibility comes in many forms. Even the smallest company impacts social change by making a simple donation to a local food bank. Some of the most common examples of CSR include:
Reducing carbon footprints
Improving labor policies
Participating in fairtrade
Charitable giving
Volunteering in the community
Corporate policies that benefit the environment
Socially and environmentally conscious investments
Millennials Want to See More Corporate Social Responsibility
For millennials and Generation Z, socially responsible companies are even more important. They believe companies should be invested in improving society and look for solutions that will assist in those improvements. Companies should share how they are trying to make a positive impact on the world, so the public can see the pro-social initiatives they are making. Showcasing efforts is important to target millennials because these efforts will sway the choices millennials make as consumers.
Millennials would also like to take part in initiatives such as being able to participate in volunteer work or making donations towards a company’s charitable efforts. As more and more companies begin to see the impact their socially and environmentally conscious efforts have on a consumer’s perception, the more chance there is that they will begin initiatives of their own.
Activism by millennials and all generations will also influence changing trends in CSR. Companies are now taking a public stand against on-the-job harassment and discrimination thanks in large part to the #metoo movement. Diversity in the workplace will continue to expand embracing people of all races, genders, cultures, disabilities, and sexual orientations.
Companies will also find their own voices to speak out against social injustice and policy changes that will negatively impact the environment. Even policies to protect privacy can become part of the CSR trends we will see as more and more data breaches threaten personal information.
Brands Doing it Right
Here are examples of how some major brands are doing CSR successfully:
1. Johnson & Johnson
An excellent example of CSR is global giant Johnson & Johnson. They have focused on reducing their impact on the planet for three decades. Their initiatives range from leveraging the power of the wind to providing safe water to communities around the world. Its purchase of a privately-owned energy supplier in the Texas Panhandle allowed the company to reduce pollution while providing a renewable, economical alternative to electricity. The company continues to seek out renewable energy options with the goal to procure 35% of their energy needs from renewable sources.
2. Google
Google is trusted not only for its environmentally friendly initiatives but also due to their outspoken CEO Sundar Pichai. He stands up against social issues including President Donald Trump’s anti-Muslim comments. Google also earned RI’s highest CSR score much in part due to their data center using 50% less energy than others in the world. They also have committed over $1 billion to renewable energy projects and enable other businesses to reduce their environmental impact through services such as Gmail
3. Coca-Cola
Coca-Cola’s massive fleet of delivery trucks contributed 3.7 million metric tons of greenhouse gases to the world. They have made major changes to their supply chain practices including investing in new alternatively fueled trucks. Their initiatives are intended to achieve net-zero carbon emissions by 2050.
4. Ford Motor Company
Ford says it will produce more than 2 million EVs annually by 2026 and projects that EVs will be half of its global sales volume by 2030. The automaker also says that half the global sales of its Lincoln luxury brand will be zero-emissions models by the middle of this decade and that it will electrify the entire portfolio of vehicles by 2030.
5 & 6. Netflix & Spotify
From a social perspective, companies such as Netflix and Spotify offer benefits to support their employees and families. Netflix offers 52 weeks of paid parental leave, which can be taken at any time whether it is the first year of the child's life or another time that suits their needs. This compares to 18 weeks at other tech companies.
Spotify offers a similar program, although for a shorter duration of 24 weeks of paid leave.
7. TOMS
TOMS mission is to donate a pair of shoes for every pair they sell and has resulted in the donation of over 60 million pairs of shoes to children in need. Profits are used to assist the visually-impaired by providing prescription glasses and medical treatments, provide'safe' drinking water and build businesses in developing countries to create jobs. They are also strong anti-bullying advocates and work with several non-governmental organizations and nonprofits to set examples of ethical behavior.
8. Bosch
Half of Bosch’s research and development budget is invested in creating environmental protection technology. In 2021 the company invested €50 million to support universities and research programs that are focused on the environment, energy and mobility in Germany, India, the U.S and China through Bosch Energy Research Network, otherwise known as BERN.
9. GE
Innovation is the key to GE’s success and its driving force since it was founded by Thomas Edison 130 years ago. The company, along with customers and partners, spent $3.7 billion on research and development in 2021. GE is involved in projects focusing on breakthrough technologies that will play a central role in meeting worldwide climate commitments by 2050.
10. Starbucks
With an eye to hiring, Starbucks is looking to diversify their workforce and provide opportunities for certain cohorts. By 2025 it has pledged to hire 25,000 veterans by 2025 as part of their socially responsible efforts. This hiring initiative will also look to hire more younger people with the aim of "helping jump-start careers by giving them their first job'. While globally the company has joined with the UN Refugee Agency to scale up the company’s support and efforts to reach refugee candidates to hire 10,000 refugees by 2022.
11. The Walt Disney Company
Disney is committed to reducing their carbon footprint with goals for zero net greenhouse gas emissions, zero-waste, and a commitment to conserve water. They are actively ensuring that they set strict international labor policies to protect the safety and rights of their employees.
They are also active in the community and encourage employees to do the same. They also have healthy living initiatives to promote healthy eating habits amongst employees.
12. Patagonia
Patagonia’s self-imposed Earth tax, 1% for the Planet, provides support to environmental nonprofits working to defend our air, land and water around the globe. They support 1330 ‘Environmental grantees’, and their Global Sport Activists® are using their roles in the sport community to drive positive social and environmental change.