Corporate Social Responsibility (CSR) has become an essential course for modern businesses. But what exactly is CSR, how does it relate to the ESG principles that investors care about, and in an era where every company practices CSR, how can a business maximize its benefits? This article will help you grasp the latest concepts in CSR and effortlessly deliver a CSR report card that stands out.
What is CSR? A New Business Paradigm Focused on Social Responsibility
CSR (Corporate Social Responsibility) is about breaking away from the past focus solely on profit, starting to consider the rights and needs of stakeholders including suppliers, partners, employees, customers, and the external environment, thus building a healthy corporate constitution while giving back to society.
Navigating the Broad Scope of CSR
How do we grasp such a wide scope? The ESG principles (Environmental, Social, and Corporate Governance) can be used to assess a company's situation and form a framework for implementing CSR strategies.
Environmental (E) looks at how modern enterprises coexist sustainably with the environment, including solutions to the climate crisis, energy conservation, waste reduction, and pollution control.
Social (S) considers the impact of the enterprise on society, communities, and culture. Does the company uphold labor rights? Does it prioritize product responsibility and consumer rights? How does the company affect the surrounding community?
Corporate Governance (G) examines the internal governance of the company. Does it adhere to business ethics? Are employee relations healthy? It emphasizes transparency and openness in management.
Why Should Companies Engage in CSR? The Benefits of Practicing Corporate Social Responsibility
"Ethics and making money are not contradictory; their long-term goals align." — Former President of National Taiwan University, Economist Sun Zhen
Many companies used to think that fulfilling CSR was merely 'doing good deeds,' which increased costs without benefiting profits. However, this notion is outdated. Properly implementing CSR not only positively affects business operations but also establishes a solid foundation for the company’s stability and long-term development.
Enhancing Corporate Image and Gaining Social Support
"Every purchase we make is a choice for the kind of world we want." More and more consumers are becoming aware of whether corporations sacrifice social and environmental considerations for profit. Companies that have been boycotted for ecological damage or human rights abuses are not few.
On the other hand, companies that give back to society gain consumer appreciation and are often supported for enhancing their corporate image, positively affecting future profits and collaborations.
Displaying Excellent Corporate Governance to Attract Investors and Partners
When a company starts implementing CSR, it shows that its operations are stable enough to consider the rights of stakeholders and give back to society, driving a beneficial ecosystem and demonstrating a commitment to sustainable management.
A company's ESG performance is a crucial evaluation criterion for initiatives like the United Nations Principles for Responsible Investment (PRI) and Social Responsible Investment (SRI), becoming a significant factor in attracting investment and collaborations.
Increasing Employee Engagement and Internal Cohesion
Driving employees to implement CSR can significantly enhance their identification and pride in the company. For the new generation of employees, beyond good benefits, contributing to society can ignite passion for their jobs. The collaboration and interactions during CSR initiatives also enhance employee cohesion and belonging, showcasing the unity and action capability of the company externally.
How to Do CSR? Four Principles for Excelling in CSR
Identify with the Corporate Brand
When selecting CSR initiatives, companies should consider how their core competencies can contribute back to society or how they can enhance the recognition of outcomes related to industry issues.
For example, FamilyMart convenience stores, starting from their fresh food business, launched the "Friendly Food Time" campaign, offering discounts on fresh food nearing expiration to encourage consumers to purchase and reduce food waste.
Top-Down Implementation
When senior management shows importance and commitment to CSR, it effectively sustains and motivates grassroots employees to engage. SOGO Department Store's commitment to becoming "Asia's First Green Department Store" is led by its chairman who fully practices CSR spirit, including environmental education for employees and providing paid leave to encourage participation in beach cleanups and old shoe rescues, making environmental action a norm among employees.
Respond to Social Needs
The foundation of CSR practices is for a company to use its resources and capabilities to address issues. By keeping pace with and promptly responding to societal demands, significant outcomes and validation can be achieved.
In addition to monitoring social trends, CSR objectives can be set based on the United Nations' Sustainable Development Goals (SDGs) to offer corporate solutions to humanity's challenges.
Continuity and Innovation
Long-term dedication to CSR topics can yield greater benefits and help establish a CSR brand for a company. However, the visibility of outcomes can diminish if actions are repeatedly executed without innovation.
TSMC hosts the "CSR AWARD" to encourage employees to submit innovative CSR ideas, injecting fresh energy into CSR activities and adding meaningful employee involvement. Sinyi Realty's "Community as One - Community Action Plan" encourages communities to propose transformation projects and helps realize these dreams. This 16-year-old project has been refreshed by involving different groups such as elementary and college students, and in recent years, it has collaborated with various government departments to infuse new vitality into the project through the sharing of public and private sector resources
What Makes Your CSR Different? Three Innovative Concepts to Stand Out CSR
Employee Engagement as a Key Factor
CSR, beyond demonstrating a company's commitment and effort towards social issues, importantly internalizes the promoted values into the daily operations of the business, making employee participation a prime indicator of the company’s commitment to collective action.
Yuli Pharmaceutical Logistics Group combines CSR with family day activities, starting with workshops to acquaint employees with sustainability concepts before inviting them and their families to participate in tree-planting events. This not only educates them about environmental protection and carbon sequestration but also practically contributes to the earth. This meaningful activity allows employees to step into nature, physically engage in tree planting, and grasp the importance of energy conservation and urgent environmental protection. A continuous sustainability plan also helps internalize environmental concepts, prompting employees to undertake a 21-day sustainable living challenge, involving actions like using eco-friendly utensils and employing timers to cut standby power consumption, thus finding motivation for daily practice.
On the first day of practicing green sustainable living, Yuli started by not using plastic straws, fostering the habit of using eco-friendly utensils, and reducing the use of disposable items.
On the second day, the focus shifted to energy conservation by unplugging unused standby electrical appliances in the office and utilizing DOMI Earth's energy-saving timers to achieve effective energy savings.
Integrating Business Operations with Long-term Social Involvement
Combining CSR with business operations not only leverages a company’s resources and capabilities to enhance societal benefits but also ensures that these benefits directly serve their customers or stakeholders, enhancing trust in the company’s services and creating a positive cycle.
The Asus Foundation has launched the "Digital Inclusion Project," which revitalizes old computers with their computing expertise and donates them to disadvantaged groups lacking IT equipment, also allowing employees to volunteer as digital learning tutors to bridge the digital divide in rural areas.
Collaboration with Non-profits and Social Enterprises
For many companies, implementing CSR is often easier said than done due to a lack of sufficient knowledge or capability to address the issues they care about. Partnering with non-profits or social enterprises that are deeply engaged with specific issues is a way to overcome these challenges.
Taishin Bank collaborates with the social enterprise DOMI; credit card users who switch to electronic billing help underprivileged families by installing LED lights. The costs saved are transformed into meaningful social contributions, and partnering with social enterprises familiar with the issues ensures that the initiatives meet societal needs effectively, creating a win-win situation.