Corporate Social Responsibility Objectives
Corporate social responsibility, CSR, is a popular business ideology in the 21st century. It expands on common business ethics to address broader and stronger standards of social and environmental accountability placed on companies following the Enron scandal, and others. The government uses regulations and the public uses the information economy to hold companies to the standards of CSR. Companies that adhere to these expectations typically seek strong customer relationships and sustainable operations.
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Customer Loyalty
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Customer retention and loyalty have long been primary objectives of companies building for long-term success. Business strategist Robert Moment points out in his WebProNews article "The 7 Principles of Business Integrity" that the foundation of CSR is honesty and integrity. Thus, companies that want to develop strong customer relationships must proves themselves to questioning and cautious consumers. This means consistent and ethical actions and transparent communication that avoids misleading and misinterpretation.
Strong Supplier Relationships
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Supplier relationships are one of the core stakeholder relationships that CSR companies focus on. In the 21st century, many large organizations have reduced the total number of suppliers they work with so they can build stronger partnerships. This enables them to improve the value of the delivery to the end customer. It also allows these distribution channel partners to cooperate in reduction of transportation inefficiency and waste.
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Improved Employee Productivity
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Leveraging the capabilities of your most important assets -- your employees -- is another primary objective of CSR, which is highlighted by the As You Sow Foundation. Incorporating employees into business decisions is one of the main ways managers can show trust in employees. Managing diversity is also very important. CSR company leaders establish a work culture that values equal hiring opportunities and a non-discriminatory work environment. Diversity can create better ideas and results if employees are trained to work together. Otherwise, tension and low morale result.
Better Community Relations
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Moment emphasizes the importance of community involvement to fulfill the social requirements of CSR. This means participating in community activities and giving back through employee volunteer programs and charitable contributions. This demonstrates consideration for your role in the community, beyond just profiting from it to give stronger returns to shareholders. Additionally, companies are closely monitored by the government and environmental groups for green-friendly operations. This includes recycling programs, efficient use of natural resources and reduction of waste.
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References
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