Corporate citizenship initiatives are the programs and policies companies use to build positive relationships with the communities, environments and people affected by their business operations. They span charitable giving, employee volunteering, sustainability commitments and nonprofit partnerships — and they’re the practical expression of a company’s broader corporate social responsibility (CSR) strategy.
Corporate social responsibility (CSR) is a model that businesses originally used to ensure they were making an impact in their communities. Now, it’s evolved to also include their social accountability to employees, customers, stakeholders and members of the public.
In this post, we’ll explore the ins and outs of CSR, including its history, the different types of CSR and its benefits. We’ll wrap up with FAQs.
This article will help you to determine a CSR strategy that fits with your business, while equipping you with the knowledge you’ll need to win internal support and — ultimately — help your people spread more Goodness.
What is corporate social responsibility?
CSR encompasses the ways businesses are responsible corporate citizens to their shareholders, employees, customers, communities and society at large.
Through CSR initiatives, companies focus on profit, people and the planet — the so-called triple bottom line.
They consider the economic, social and environmental aspects of their business.
Think of CSR as an internal and external commitment a company makes to both profit and purpose. It’s a way to showcase how and why their values are ingrained in what they do.
When executed well, CSR can enhance how a business is viewed and approached, helping to share a company’s broader mission with the world.
CSR typically includes:
Community investment or granting
Employee giving and volunteering
Diversity, equity and inclusion
CSR increasingly includes:
Customer engagement/giving
Public engagement/giving
Positive actions
Small Acts of Goodness (e.g., tracking volunteer time, creating a giving opportunity)
For more on what CSR is and why it’s important, check out this episode of The Social Impact Show by Benevity.
The history of CSR
Socially responsible organizations can be traced to the mid-to-late 1800s.
Philanthropy was on the rise at a time when many factory employees faced poor working conditions. This led some businesses to reconsider their production models.
Corporate responsibility gained traction in the early 1950s after American economist Howard Bowen published the book Social Responsibilities of the Businessman.
As companies considered their responsibility to society and looked after their people and the communities they operated in, they saw brand benefits.
A big step toward popularizing CSR came in the 1970s when an American organization, the Committee for Economic Development, formed a social contract between business and society.
Jump forward a few more decades, and academics began to write more heavily on corporate responsibility, outlining ways for businesses to be more conscious of their people and the environment.
Today, CSR is considered a must-have strategy for every business.
It provides many benefits, including enhancing company image, business growth and corporate purpose.
What’s the difference between corporate social responsibility and environmental, social and governance (ESG)?
CSR and ESG are different but overlapping concepts, both addressing the idea a company should play a positive role when it comes to ethics, sustainability and social impact.
CSR involves a broad scope of strategies and initiatives that engage a company’s workforce, customers, the community and society as a whole in positive impact initiatives.
A CSR program’s success can be measured in different ways; there is no standardized system.
Why is CSR important?
Employees today want to do more than work for a company; they want to work with a company and for a larger purpose. A strong CSR or corporate purpose program is closely connected to a company’s ability to attract and retain the best talent.
Young people are especially aware of their environmental impact and social responsibility, with 74% of Gen Z employees believing work should contribute more to their lives than a paycheck.
CSR helps our planet, and it also brings economic benefits. Corporate responsibility initiatives increase employee engagement, with research showing companies with higher levels of engagement are 22% more productive and can create 50% higher revenue per employee.
Different types of corporate social responsibility initiatives
The term CSR is broad, and no two CSR programs are going to be the same. CSR can be as extensive as a comprehensive giving, volunteering, granting and customer engagement program that runs all year, or as simple as an annual fundraising campaign.
The focus of a CSR program is influenced by the issues or causes your company has decided it wants to solve for or your people are passionate about.
Programs can address different areas, such as:
- Increasing social responsibility.
- Eradicating child labor.
- Creating free educational services.
- Initiating fair trade practices in supply chains.
- Promoting environmental responsibility.
- Sponsoring local events.
- Using sustainable resources.
- Minimizing the environmental impact of business travel.
These are just a few areas a CSR program can encompass.
Benefits of CSR initiatives
CSR increases employee engagement
Extensive research proves that CSR and a strong sense of employee purpose actively contribute to increased employee engagement. That’s important because when a company has engaged employees, they see a 17% increase in productivity, are 21% more profitable and can have 41% lower absenteeism.
CSR increases revenue
Companies investing in social purpose have a 6% higher market value and generate 20% more revenue than companies that don’t invest in social purpose, according to Project ROI.
CSR supports local and global communities
CSR gives people the leverage and the platform they need to make a difference in local and global communities.
CSR helps attract, retain and develop talent
Benevity’s own research shows that companies with CSR programs where their people are actively engaged in giving and volunteering saw a 57% reduction in turnover for those employees.
6 crucial steps to designing your CSR program
1. Decide on the purpose of your program
Start by gathering a team who can help you brainstorm about the strategic focus of your program. You’ll need to understand what you’re solving for from a business perspective.
2. Circulate your ideas among your stakeholders
Once you have your priorities and focus areas figured out, you can start sharing them with your direct leadership, your partners on other teams and any other stakeholders who will be invested in the work you’ll be doing.
3. Design and build your program (it’s OK to start small!)
After getting the buy-in you need from your stakeholders, you can focus on implementing specific programs.
4. Launch your program
It’s time to share your program with your employees and other stakeholders!
5. Set benchmarks and measure your impact
The technology you use will give you the performance-tracking data you need to establish benchmarks for future years.
6. Share that impact!
This is the time for storytelling to remind your people and your community of the good you’re doing and to spread more Goodness!
CSR has a place in every company
The CSR landscape has changed dramatically over the past 20 years. Now, more than ever, companies are seeing the value of embracing corporate purpose by helping their employees have an impact on the world while they’re at work, investing in their communities and encouraging volunteering.
And companies are seeing the benefits of their CSR efforts: boosts in employee morale, improved retention and higher profits. Whether you’re launching your program from scratch or building upon a solid foundation, now’s the time to have a positive impact on the world.
