Taking up CSR for a better world

There is no conflict between making money and being socially responsible. You can create jobs and be Santa Claus at the same time:Warren Buffett
In modern times, multinational companies are known as the most controversial organisations in both developed and developing countries. There have been concerns that these companies operate only for profit at the expense of the workforces they engage, the society around them and even the environment that they evolve around.
Thus, in recent years, corporates have known very well that in order to sustain and continue thriving, there is no alternative to adopting a more inclusive business model, which has a direct link with business performance. As a result, multinational companies have taken various steps to show their social responsibilities ever since corporate social responsibility has been in the spotlight.
Corporate social responsibility (CSR) is about understanding the impact the business has on the wider world and how this impact can evolve the business in a positive way. It is an ongoing pledge by businesses to behave in an ethical way and contribute significantly to its social, economic, national and environment development. CSR focuses on taking a responsible and diligent front and attitude, and doing something beyond the minimum legal requirements by following clear-cut principles to support a positive attitude and impact through its works and activities on the environment, consumers, employees and other stakeholders.
Businesses that are proactively engaged in CSR promote the interest of the people by supporting community development and growth, and voluntarily eradicating any harm in people's life. As a result, the concept of CSR mingles with the concept of global citizenship. And environmental stewardship and sustainable development follow in.
The inclusion of the CSR issues into the decision-making process of a corporate is a bold step because it is a means to show that businesses also care for the people, society and the earth. However, besides promoting the idea that “we care”, businesses have taken the role of a responsible organisation to increase their customer base, make more profit and also to attract and retain its staff, as employees always tend to work with companies and organisations that have a responsible and ethical ground. CSR is a continuing process of building value. This responsibility also helps to augment and develop the reputation of the business and boosts the customers and other stakeholders to stay connected with the company.
The CSR policies also help boost the business profile of a company. However, CSR should not to be regarded as a marketing strategy or public relations tool. It is carried out as it makes good sense since the environment is part of what businesses do as a normal course of action.
At the same time, effective CSR initiatives help businesses differentiate themselves and stand out. It gives the companies an edge over their competitors due to a rise in shared value which is defined as policies and operating practices that sharpen and boost competitiveness.
Also, CSR practices help improve the economic and social conditions in all communities in which a company does business. Shared value creation involves some basic things, such as identifying and expanding the link between social and economic advancement. CSR also enables new products and services to be developed that reflect the values of the organisation and the stakeholders. In this way, it can all add up to an influential brand and a winning business entity.
At present, keeping pace with the most evolving phenomenon of globalisation, businesses have even taken steps to go an extra mile and go global with their respective CSR approach.
As businesses worldwide are integrating into one, companies are now engaged not only with their stakeholders but with the governments and civil society members and groups. Business leaders now fully commit to sustainable development and address the problems that stem from mounting global challenges, including climate change, healthcare facilities for people, energy conservation and resource management. These global issues impact businesses a lot and can hurt the bottom line, as global citizenship is in a moderate self-interest of a corporate. Addressing the global issues with the CSR practices can be beneficial for the corporate and for the globalised society.
A global approach to CSR was pioneered by the second largest cosmetic franchise, Body Shop International Plc, better known as The Body Shop, which is a leader in promoting corporate transparency. It always strives for positive social and environmental changes through campaigns that brought in limelight their five core values -- support community trade, defend human rights, stand against animal testing, activate self-esteem and protect our planet.
Dame Anita Roddick, founder of The Body Shop, strongly believed, “The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed.”
This multinational company has launched several high- profile international campaigns and it has always been in the spotlight for its campaign -- Against Animal Testing -- which focused on the fact that all its products were animal cruelty free and vegetarian. This initiative eventually gave The Body Shop a worldwide recognition as they were the first international cosmetics company to sign up to the Humane Cosmetics Standards, supported by leading international animal protection groups.
The Body Shop, however, is not the only multinational corporation that has taken the necessary steps to create a global social environment.
Tata is a multinational Indian conglomerate with interests in communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Besides acquiring businesses around the world, Tata Group has always aimed to introduce to the world the way they do business by taking the Tata trusts to all.
The wealth generated by Tata and his sons were always aimed at enriching the nation. Their whole wealth is held in trust for the people and used for their benefits. So, what came from the people is what usually goes back to the people many times over.
JRD Tata, chairman of the Tata Group (1983-1991), believed that "to create good working conditions, to pay the best wages to its employees and to provide decent housing to its employees are not enough for the industry; the aim of an industry should be to discharge its overall social responsibilities to the community and the society at large, where the industry is located."
For a brighter and better future, Tata has ensured that their global CSR practices are focused on stringent goals to reduce carbon footprint and greenhouse gases in the leather factory. The conglomerate also wanted to empower and enhance the livelihoods of the global communities in equal measure.
Tata is slowly trying to incorporate its values of CSR globally and is trying its level best to create global awareness on various concerns that are affecting the world adversely.
Sony Group has always focused on electronics, games, entertainment and financial services sectors. This multinational company represents a wide range of businesses and stands out globally. Its aim is to fully leverage this uniqueness in uncompromisingly carrying out the company's convergence strategy to carry on a touching and stirring link with the customers. And in order to ensure a better living and environment for its customers and stakeholders, Sony develops fresh, ground-breaking and sustainable ways of global CSR.
To promote a sustainable environment for future growth and also the next generations, Sony stresses four key areas -- global warming and the reduction of greenhouse gases, conservation and effective use of natural resources, preservations of natural environment and reducing carbon dioxide emissions by introducing energy-efficient products.
Sony recently launched an environmental campaign styled “Road to Zero” that aims to achieve a zero environmental footprint throughout the life cycle of its products and business activities. The company is also developing innovating environmental and energy-related fields through continued development of new technologies such as dye-sensitized solar cells and bio-batteries.
With a goal of aiding to those in need, Sony also took initiatives to help the millions of victims in Haiti, Chile and China affected by devastating earthquakes. And to support the Japanese who have been affected by the devastating earthquake and tsunami, Sony has donated 300 million Japanese yen to help recovery efforts in the communities affected. The company even donated 30,000 Sony radios to assist the relief of earthquake victims. Additionally, a disaster relief fund collected donations across Sony from employees worldwide and their contributions would be matched by the company through a matching gifts programme.
Through these initiatives and campaigns, Sony also hopes to achieve the Millennium Development Goals (MDGs) shared by the global community. Sony believes that multinational corporations need to fulfil their responsibilities as a corporate citizen and promote social innovations so that the company can build a healthy and sustainable future of the people it serves, and the planet.
Real advancement towards sustainable development needs enthusiasm on the part of businesses and organisations to be held responsible for economic, environmental and social performance, and to respond to the concerns of the stakeholders.
The CSR practices have created uproar in today's business world. The issue of CSR has turned into one of the factors critical to the success of the multinational companies since performance is now measured on many dimensions and success is defined in a holistic way. One of the great achievements from the connected economy is transparency, which is the key to confidence and trust.
The Body Shop, Tata and Sony were only a few multinational companies to name who have taken maverick approaches. Even though they have been subject to criticism, the companies have demonstrated that corporations can be both responsible and profitable. The CSR practices help distinguish between a good company and a great company as William Ford Jr, chairman of Ford Motor Co, said, “A good company delivers excellent products and services, but a great company does all that and strives to make the world a better place.”

The writer is the chief communications officer of Grameenphone Ltd.