Many people know that CSR stands for Corporate Social Responsibility, but not everyone understands what it really means and how important it is in the long-run for businesses. CSR is based on the premise of good business for a good society. It takes employee integrity and appropriate organizational structure to realize CSR.
In today’s globalized world, the effects of corporate and social rules and regulations can be limited, although politics plays a vital role. Today, more and more companies are realizing the relevance of moral practices in their businesses. CSR is not only about preventing unethical practices, but also about managing both individuals’ and organizations’ structure.
Now the real question arises: How can companies contribute to society through good business practices? Donating money or creating a charity foundation may not be the correct answer here. CSR is actually more about how companies earn their profits, not about how they spend them. In general, companies should be moral actors in all that they do. CSR cannot be realized alone by a virtuous manager. Employees of integrity are needed at all levels of the organization. Organizational structure and clearly defined rules also play an important role. However, relying solely on a code of conduct is not realistic.
Companies are expected to operate responsibly. Some companies do take their initial steps towards responsible business practices, whereas on-the-other-hand, there are those who misconstrue CSR as a PR instrument. There are also some who do not place a priority on showing any kind of corporate responsibility. Hence, where do you think your organization stands?