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The concept of businesses being socially responsible is not a new concept. Juggernauts like Andrew Carnegie and John D. Rockefeller were among the first to demonstrate businesses’ responsibility to society through their significant donations to education and scientific research. Their philanthropic efforts paved the way for other businesses to follow suit.
By the 1950s, corporate social responsibility had transcended being a niche practice to become a driving force for all businesses. In 1953, American economist Howard Bowen, often hailed as the father of Corporate Social Responsibility (CSR), introduced the term in his publication ‘Social Responsibilities of the Businessman.’ His work was instrumental in defining the social responsibilities that businesses should uphold.
Today, businesses collectively invest a staggering $20 billion annually in their CSR initiatives. This financial commitment underscores the significance of CSR as a ‘social contract‘ between companies and the communities they serve. Business leaders, with their substantial earnings and influence, have the power to make a positive impact on the world. Identifying and implementing CSR initiatives is not just good for business, but also for the global community.
In 1971, the Committee for Economic Development sought to define the terms of this social contract between businesses and their communities that would come to be referred to as a “license to operate.” Based on the idea that business functions because of public “consent,” businesses must therefore constructively serve the needs of society by following these three responsibilities:
- Provide jobs and economic growth through well-run businesses.
- Run the business fairly and honestly regarding employees and customers.
- Become more broadly involved in improving the conditions of the community and environment in which it operates.
These three social terms should be considered the gold standard for businesses seeking guidance in identifying their initiatives. In addition to this established social contract, businesses should consider how to approach the development of their own culture and community-specific initiatives. Below are a few tips for developing initiatives for your business while keeping the desired social impact in mind.
Consider the relationship your business has with your community.
Businesses play a crucial role in their local communities. They should be a source of pride and reflect the values and way of life of the people in the area. Whether a business was founded by a community member or is a branch of a larger corporation, it belongs to the community in which it operates. Businesses have a responsibility towards the well-being of the people and the environment around that community. When considering new initiatives, it’s not just important, but essential to consult with community leaders. This consultation process ensures that the business’s contributions align with the community’s needs and values, fostering a sense of respect and understanding.
What are some of the causes your businesses want to support?
These goals can represent both internal and external objectives. For example, if employee engagement is a part of your company’s CSR (Corporate Social Responsibility), consider initiatives to enhance employee engagement and build stronger connections with potential employees. If your company specializes in producing and selling clothing, consider collaborating with fashion schools to help train the next generation of designers. On the other hand, if your business is involved in engineering, think about implementing programs focused on STEM (Science, Technology, Engineering, Mathematics). It is essential to determine the number of hours and the amount of money your company is willing to invest on a monthly, annual, or bi-annual basis. Whatever decision your company makes, these efforts can ensure that your business is socially responsible and steadfast.
Consider creating a dedicated team within your organization dedicated to upholding your newly developed initiatives.
To ensure that your business is compliant with its corporate social responsibilities, consider hiring and implementing a dedicated team that focuses solely on these matters. This ensures that your CSR initiatives provide value to your team, leadership, customers, community, and brand. At Credico, we have established various internal committees that work to uphold our commitment to supporting and serving our community. This dedicated team actively seeks opportunities for us to serve throughout the year.
It is important to remember that owning a business and having a presence in your community is a privilege. With this success comes a great responsibility to your team, your community, the world, and the environment. When businesses, regardless of their size, take their corporate social responsibilities seriously, it is their way of showing gratitude for their success and saying thank you to the employees and customers who have supported them and the earth we call home for hosting a place for their business. Businesses aware of their corporate social responsibility are proactive in identifying their goals and initiatives and actively implementing them to strengthen their brand image and overall reputation, which is a win for both the corporation and society.