Opportunities
Corporate Social Responsibility offers companies numerous opportunities to assume responsibility and work towards sustainable development. For a CSR strategy to work, it is important to reconcile the three areas of economy, ecology and social issues equally.
The economic aspects of CSR relate primarily to the responsible use of finances. Companies should provide the greatest benefit and the best possible care for society, at the lowest possible cost. On the economic entrepreneurial level, the company strives to cover its costs and to show credibility to its stakeholders. This also has a positive effect on competition and ultimately on the success of the company. One example of the economic area of responsibility of CSR in practice is the financial support of employees, such as in the company pension scheme.
Part of CSR is environmentally friendly management. For many companies, making a profit and being successful still comes first. But as we tackle climate change, ecological sustainability and credibility are important economic resources, that managers need to include as part of their strategies as a corporate guideline. This includes preserving ecosystems and biodiversity on land and underwater, protecting human health and conserving natural resources. These areas must be considered for all business operations.
Social justice is at the forefront of CSR. Equal opportunities, a fair distribution of income and the preservation of social systems are all part of the social level. Social commitment is an important component of a sustainable corporate strategy. On the one hand, internal measures are considered to bind and motivate employees – a healthy work-life balance, combating racism, sexism and discrimination in all forms, and promoting diversity within the company are among the goals of social responsibility. In this context, it is important to involve employees in discussions. On the other hand, at the external level, donations, sponsoring and volunteering in particular play an important role in acting credibly in favor of the company’s own corporate responsibility and vis-à-vis stakeholders.
Accountability
- Transparency
- Stakeholder involvement
- Reporting on CSR performance
- Monitoring (tracking CSR performance over time)
- Verification (review of CSR performance by independent third parties)
Fair Business Conduct
- Fighting corruption
- Responsible political participation (e.g. refraining from covert lobbying)
- Fair competition (e.g., refraining from price and territorial agreements)
- Respect for property rights (e.g., copyrights, patents)
Corporate Governance
- Safeguarding the rights of the owners (shareholders)
- Organization and responsibilities of the board of directors and management (duties and composition; dealing with conflicts of interest and knowledge bias, internal control)
- Audits (external audit/verification)
Environmental Protection and Nature Conservation
- Avoidance of environmental pollution
- Sustainable use of resources
- Contribution to climate change mitigation and adaptation
- Biodiversity and restoration of natural habitats
Human Rights
- Health and safety in the supply chain
- Avoiding child and forced labor
- Freedom of association and trade unionism
- Wages, working hours and overtime, vacations
- Indigenous rights
- Disciplinary practices, security personnel
Working Conditions
- Occupational safety, workplace health promotion
- Equality, non-discrimination, diversity
- Protection against harassment, abuse, bullying
- Training and further education, personality development
- Compatibility of work and family (working hours, childcare)
- Protection of privacy, data protection
- Information and participation
- Social security
Markets and Consumption
- Fair marketing, information and contracting practices
- Protection of health and safety in the up-stream value chain, including the consumer
- Customer service, complaint and dispute resolution
- Protection and confidentiality of customer data
- Safeguarding basic services
- Education and awareness
Behavior on-site
- Positive effects on the local economy
- Employment of local staff
- Philanthropy, charity, donations
- Protection against harassment or health hazards
- Behavior toward authorities
- Compliance with tax laws and regulations
- Community