The traditional view of business “success” prioritizes the bottom line and exchanges public responsibility for private gain. In recent years, this view has been modified as businesses recognize the pivotal role they play in social progress.
Corporate social responsibility (CSR) is the idea that businesses have a responsibility to their community, society and the environment. Since more companies are prioritizing social responsibility in modern business operations, it’s essential to learn the know-how to incorporate CSR into your skill-set, helping you stand out in a large pool of business professionals.
Corporate social responsibility is often broken into categories based on the different ways that businesses can be mindful: environmental, ethical and philanthropic.
Businesses that commit to CSR adhere to a triple bottom line, balancing economic, social and environmental responsibilities to maintain ethical practices and do business for good. From financial management to employee benefits, CSR demonstrates a holistic approach to socially responsible business.
CSR improves business sustainability by encouraging efficiency and ethical decision-making, as well as building a trustworthy corporate culture for employees. Taking steps toward social responsibility and transparency also leads to stakeholder trust and a favorable public image, which can be an effective marketing tool.
With consumers showing an increased interest in businesses that demonstrate social responsibility, leading global companies are forging ahead in sustainability, awareness and inclusivity. Brands like Johnson & Johnson, GE and Coca-Cola are making strides in eco-awareness, energy efficiency, carbon neutrality and clean technology.
Innovative social responsibility initiatives benefit communities while driving strategic business advantages. Ford Motor Company has invested $23 billion in electrification as part of its goal to be carbon-neutral by 2025 and introduced a global salaried pay ratio for all employees to improve pay equity. Changes like these build trust between a company and its employees and consumers while creating meaningful change in the world.
Technology and digital transformation play a large role in amplifying CSR efforts. Modern technological innovations have enabled businesses to target specific weaknesses in their processes and practices, and digital tools have opened the door to new business models and capabilities like remote working. As consumers look to how businesses will utilize technology for good, harnessing and using resources to create change is pivotal.
Companies interested in embedding CSR into their “business DNA,” including company culture and operations, should begin by taking stock of internal operations. Fostering corporate social responsibility starts at the top with transparency from business leaders, universal accountability and ethical decision-making.
Engaging employees and stakeholders in CSR initiatives will create a greater impact on both your business culture and the surrounding community.
Promoting CSR starts with educating business owners and changemakers on the proper practices for social responsibility. Business education, particularly at the graduate level, is instrumental in promoting CSR for current professionals and future leaders.
The Knauss School of Business integrates social responsibility skills in every course, inspiring students to lead with purpose and giving them the tools to do so. The MBA program offers several specializations all of which include business for good, corporate social responsibility and sustainability. No matter their concentration, every MBA student also fulfills a community service requirement. These skills develop the competencies and mindset required to drive meaningful CSR initiatives in the business world.
Wondering which MBA program is best for you? Take our MBA Quiz to identify the format that fits your lifestyle.