All companies, regardless of their size, have a direct impact on society. All actions, their values and philosophy, leave a mark on the environment and on society.
Corporate Social Responsibility (CSR) is a way of directing companies so that the impact they have on society in general is positive. After the crisis that we have experienced and continue to experience from COVID-19, this responsibility has increased, with solidarity and mutual support being a key element.
“You will never have an impact on society if you don't first change yourself”
Nelson Mandela
When and how did Corporate Social Responsibility emerge?
The origin of the concept of Corporate Social Responsibility dates back to the mid-twentieth century in the United States. From then on is when several academics began to be interested in the impact that business activity had on society. The consequences were not long in appearing, and during the sixties several academics reflected on the obligations that companies should have in the development of society, apart from economic growth.
During the last decades, CSR has become a fundamental element for all companies, since they do not only seek economic benefits, but rather they have to make it compatible with maintaining a positive public image and in accordance with the events that take place in society.
Benefits of CSR for companies
Corporate Social Responsibility not only has benefits for the environment, but for the company itself it also has many advantages:
IMPROVEMENT OF THE COMPANY IMAGE
Thanks to CSR, the company gains credibility and trust from customers, without having to invest a large budget in communication and advertising. The services and products offered by the company may be differentiated from the rest.
ATTRACT AND RETAIN TALENT
Thanks to having a CSR, employees will see themselves more motivated in working in a company that cares about social and environmental problems, thus increasing their commitment to it.
ENHANCE LOYALTY
As we mentioned before, thanks to CSR, the products and/or services offered by the company have added value in a way that builds customer loyalty. Many of them value that the company is committed to social and environmental aspects that concern society.
FISCAL BENEFITS
Several Corporate Social Responsibility actions have different tax benefits with which the company can benefit by saving a certain amount of money in taxes per year. 35% of donations may be deducted, and may reach 40% from the third year they have collaborated.
FINANCING
Companies will be able to access different sources of financing, whether public or private, for any social project.
BUSINESS EFFICIENCY
Among the CSR actions are those of caring for the environment and the use of clean and renewable energy. For this reason, when companies make use of this type of energy, they will be able to reduce energy consumption costs.
Areas of Corporate Social Responsibility
Four different areas can be distinguished within CSR:
ENVIRONMENTAL RESPONSIBILITY
All economic activity has an impact, whether large or small, direct or indirect, on the environment. For this reason, companies must optimize their resources to do the least possible damage and reduce their footprint as much as possible. Different actions are carried out which are designed to make all processes as sustainable as possible, such as projects that fight against climate change, training for company employees on sustainable actions, responsible water consumption, optimization of product packaging, and a long etcetera.
LABOR LIABILITY
Within Labor Responsibility there are different actions that focus on one of the most important axes that make up a company; the employees. Retaining their commitment to the company, taking care of their well-being, having family reconciliation options, promoting talent retention policies, and a long etcetera are within this area.
COMMUNITY RESPONSIBILITY
Measures are implemented that aim to create a positive impact on society. Among all the actions we can find, for example: volunteering, courses and training, business diversity, etc.
MARKET RESPONSIBILITY
In addition to all the responsibilities mentioned in the previous points, ethics and company values must be extended to the sale of products or services. The company must promote responsible consumption, create quality products, and favor sustainability as much as possible.
Cases of real CSR actions in companies
MERCADONA AND INDITEX: Both companies are recognized for their CSR actions carried out. Inditex offers its corporate ethics policy on its website, which includes actions such as responsible water and energy consumption, recycling, protection of biodiversity, etc. And Mercadona, for example, has decided to end plastic bags and opt for recyclable alternatives such as paper bags.
CABIFY: The transportation network company Cabify, carries out different actions related to diversity, development and the environment. Among its most outstanding actions we point out the compensation of 100% of its emissions through environmental projects.
IKEA: Among the CSR tasks carried out by Ikea, we can highlight the manufacture of some of its products such as kitchen products made from plastic bottles, smart lights, solar lamps, cabinets with bamboo doors, sofas made from recycled materials and a long etc.
