Businesses are not just there to be there nor are they there just to make money. Employees, customers, suppliers and the local residents are all affected by how your business is run. The term Corporate Social Responsibility (CSR) is often used to describe the actions of a private, commercial organisation assuming a responsible view of its wider obligations to society. CSR has been otherwise defined as: “fulfilling a role wider than your strict economic role” or “acting as a corporate citizen”.
CSR is about understanding the impact your business will have on the surrounding environment and working to use this in a positive way. It means taking a responsible attitude, giving beyond the minimum legal requirements and following certain principals that are applicable to your business.
The theory behind business finance is that the prime objective of managers is to maximise shareholders wealth at no matter what costs while managers dictating agency theory must act in the best interests of the company and thus strive to maximise shareholders wealth.
Some example attributes of CSR within a business are;
* Upholding responsibilities to customers and suppliers.
* Contributing to the welfare of society as a whole.
* Environmental protection.
* Provision of a service.
* Providing for the welfare of employees and management.
CSR is a prominent 21st century ideology and some Irish examples are the SuperValu and Centra sponsorship of Tidy Towns Ireland and KPMG International policy of purchasing 90% of its energy from renewable sources. One of the starter organisations to have used CSR would without doubt have been the Body Shop and its ethical products available.
SuperValu’s Tidy Towns is excellent advertising for the supermarket chain. In 2012 they introduced the ‘Every Can Counts’ project. The Every Can Counts project helps them achieve corporate social responsibility and sustainability objectives, including zero waste to landfill targets. Results...