About Corporate Social Investment Policy
Corporate social-investment (CSI) programs are growing in number and popularity around the world. A social-investment program is a way for a business to invest resources in the community to support social and environmental programs. These resources can include money, time, skills or the direct participation of corporate leaders or employees. Corporate social-investment programs range from supporting a corporate foundation that awards scholarships to local students to providing skilled volunteers to assist with specific environmental projects in the community. A corporate social-investment policy is the plan that details how a corporation will implement a social-investment program.
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Function
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Corporations usually volunteer to create a social-investment program, as it can improve the reputation of the firm, as well as increase customer loyalty and overall profits. The Corporate Social Investment (CSI) policy details the plans of a corporate social-investment program. It includes the goals and objectives of the program, its mission statement and a strategy to measure its levels of success. The policy informs all corporate stakeholders about the social-investment program, and describes the limitations (as well as standards and constraints) of the CSI policy.
Features
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Although CSI policies vary, each one can contain certain sections that describe the details of the policy. These include a detailed introduction, a presentation of benefits to both the stakeholders and the corporation, and a list of definitions that might not be common knowledge. The "procedures" section describes the steps needed to implement the policy, and how those steps will be taken. The department or employee responsible for each segment of the CSI, and the evaluation plan, are often included. An evaluation process will determine if the goals of the policy have been met. This evaluation is usually done on an annual basis. If changes are discovered to be needed, the CSI policy should be revised to make it more effective.
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Benefits
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A CSI policy can enhance the good will between the company and the community. It showcases the values and ethical standards of company leaders, which in turn can improve profit margins and secure loyalty to the corporation. Companies with a social-investment policy are more trusted and considered better places to work. Communities in which corporations are very socially responsible often have higher rates of literacy and lower rates of crime and unemployment.
Misconceptions
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Not all corporations willingly create a CSI policy. Some resist engaging in any activities that take resources away from daily business operations that are directly related to creating a profit for stockholders. Some company managers operate in ways that are lawful, but make no effort to create additional programs or to create a social-investment policy. (Some communities may require a corporation to design a social-investment program before the business is allowed to operate in the area.)
Potential
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The popularity of CSI policies is growing worldwide as corporations become more global in their operations. Communities around the world are anxious to attract companies that show a willingness to invest in the community. These companies help with both governmental and non-governmental programs. They work to develop the skills and quality of life of area residents, providing a win-win situation for all. Another boon is to the company's workers: For example, employees can benefit from a corporate social-investment policy that makes sure they have opportunities to participate in educational programs to gain new skills and advance in their careers.
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