Incorporate CSR into your daily routine. CSR encompasses a number of issues. Working conditions, human rights, environment, ethical sourcing, gender balance, and taxes are just a few. Proper implementation of CSR principles will increase your competitive advantage and boost your sales. Moreover, your employees will love working for a company that cares about their well-being. You will find a greater pool of top candidates when your company is committed to CSR.
What are the CSR principles? Burke and Logsdon defined strategic CSR as a five-dimensional approach that can lead to improved financial performance. Burke and Logsdon (1996) defined strategic CSR as a business’ ability to create value through specific actions and initiatives. These benefits should be identifiable, measurable, and applicable to core business activities. In addition, a firm must also be visible to external and internal stakeholders to maximize CSR effectiveness.
Carroll’s approach to CSR was influenced by social movements in the 1960s and new legislation in the United States. Nonetheless, his conceptualization of CSR is based on other scholars and is more relevant to today’s context than earlier definitions. However, it does not define CSR in the same way as CED, and many have suggested that the two are not mutually exclusive. Therefore, it’s best to choose a CSR definition that fits your business’s culture and context.
The fundamental question to ask is what role business plays in society. In fact, CSR activities are often misinterpreted as unjustified or inappropriate, according to Friedman. Friedman’s view on CSR reflects a different approach to corporate social responsibility. Friedman’s view of CSR activities is that businesses should pursue only their economic interests. As such, it’s vital that business practices follow the principles laid down by Friedman.
In the 1990s, CSR took on more meaning and a more international appeal. New legislation, social movements, and globalization brought new responsibilities for business. Academic publications and global recognition of CSR all came about at this time. Carroll’s pyramid of CSR is a useful framework that guides the implementation of CSR. The goal is to create a corporate culture of integrity. And it’s all about achieving that balance.
As a result, these four principles are based on the notion of voluntarism. In Husted and Allen’s survey, only 11% of companies said they implemented CSR principles beyond the legal requirements. Nevertheless, the importance of voluntarism cannot be overemphasized. By creating value through voluntary actions, companies can create competitive advantage by being first to implement policies that improve the quality of society. With this, they can enhance their profits while simultaneously improving their brand image.
The European Commission has promoted CSR as a distinct European strategy. The strategy was derived from new social expectations and growing environmental concerns. It presents a European approach to CSR that seeks to integrate it into global initiatives. It’s important to keep in mind that there are many principles and ideas that are still forming the landscape of CSR. If you’re considering implementing CSR in your company, keep these principles in mind.