Corporate Social Responsibility: A Commitment to Society?
Corporate Social Responsibility, CSR for Short and Corporate Social Responsibility in German, is a concept that has taken on a firm place in the business world in recent years. The term refers to the voluntary commitment of companies to assume responsibility for social and environmental concerns in addition to legal regulations and economic interests.
What is CSR exactly? Why is it important for companies and how do we implement it at Regional Hero? We get to the bottom of these and other questions in our blog article.
What is corporate social responsibility?
CSR comprises a wide range of activities aimed at making a positive contribution to society and the environment. This may relate to various aspects, including environmental protection, social justice, ethical business conduct, and public welfare. In essence, it is about companies taking into account their impact on the world around them, beyond their actual business activities.
Sustainable development is a fundamental pillar of CSR. This includes the responsible use of resources, the promotion of environmental protection measures and the support of social concerns. Companies that practice CSR strive to achieve long-term positive effects on the community and the environment, rather than focusing exclusively on short-term profits.
Why is corporate social responsibility important for companies?
CSR has become more important in recent years as society increasingly expects companies to generate more than just economic profit. There are various reasons why corporate social responsibility is crucial for companies. We've taken a closer look at some of them:
- Reputation and brand image: Companies that take on social responsibility build up a positive reputation. Many consumers tend to prefer products and services from companies that are committed to social and environmental concerns. A positive brand image can strengthen customer loyalty, help open up new target groups or open up new business opportunities.
- Employee motivation and retention: Corporate social responsibility can help create a positive work environment and increase employee motivation. Employees tend to be proud to work for companies that are committed to social and environmental causes. This in turn promotes employee loyalty and increases the attractiveness of the company as an employer. Especially for Generation Z, i.e. young professionals of today, sustainability is also important when choosing a (future) employer.
- Risk management: Companies face various risks, whether in terms of environmental impacts, social standards, or ethical business conduct. Through proactive CSR measures, companies can ideally manage these risks better and protect themselves from potential negative effects on their operations.
- Long-term value creation: CSR can create long-term value for companies by strengthening stakeholder trust and promoting sustainable business practice. In the long term, companies that assume social responsibility can be more resilient to changes in the business environment.
- Statutory Requirements and Regulatory Pressure: In many countries, companies are increasingly being asked to comply with social and ecological standards. CSR as a firmly anchored goal helps companies comply with legal requirements and meet regulatory pressure.
This includes in particular the EU Corporate Sustainability Reporting Directive (CSRD), which came into force on January 5, 2023 and which must be implemented by member states by summer 2024 at the latest. With the start of fiscal year 2024, there are therefore already new reporting requirements for a wide range of companies. A good summary can be found on the websites of the Federal Ministry of Labor and Social Affairs set up specifically for this purpose.
What are the well-known examples of corporate social responsibility?
- Patagonia
Patagonia places great emphasis on environmental protection and fair working conditions. The well-known outdoor clothing brand is actively working to improve working conditions in the textile industry, both with its direct suppliers and beyond. In addition, special attention is paid to the origin of the raw materials themselves. The company regularly donates part of the profit to environmental initiatives. On their web site The company summarizes its efforts regularly and transparently. In addition, customers are proactively encouraged to use the repair service in the company's stores or, with the help of numerous videos, are instructed to carry out minor repairs to their outdoor clothing themselves instead of disposing of it and buying new ones. In this way, the products are used longer and resources are saved sustainably.
- Rapunzel
As Pioneers in the Production of Organic Products in Germany, Rapunzel launched a specially set up program many years ago to import sugar, cocoa and coffee, among other things: Rapunzel Hand In Hand (HIH). Overall, it stands for a comprehensive and transparent fair trade program that defines both social and ecological criteria and allows them to be independently verified. Suppliers commit themselves to organic quality products, transparency in corporate governance, social security for employees, decent working conditions and the prohibition of child labor. In return, Rapunzel guarantees long-term business relationships, purchase guarantees and a minimum price that is above average conventional market prices.
- Ecosia
Ecosia is a proxy search engine that uses its profits to pursue environmental goals. Ecosias Search results and search ads are delivered by Google or Microsoft Bing. The advertising revenue from the ads covers the company's operating costs and any surpluses are used to finance environmental projects around the world with a particular focus on tree planting. In this way, every use of the search engine helps to support these projects.
A few other examples from Germany, particularly with regard to the implementation of the Supply Chain Act, can be found at Websites of the Federal Ministry of Labor and Social Affairs to find.
Overall, these examples show that CSR is not limited to a specific sector, but can be successfully implemented by companies in various sectors. These companies prove that it is possible to combine economic success and social responsibility.
Young companies in particular are increasingly choosing to make corporate social responsibility an integral part of their DNA.
How do we implement the topic of corporate social responsibility at Regional Hero?
The idea behind Regional Hero was born during the pandemic with the founding of help.Berlin As a non-profit platform to support favorite places whose existence was threatened due to the corona crisis.
Social responsibility is therefore part of our DNA.
We are committed to increasing the focus on businesses in the region again and thus not only bringing local players together, but also protecting the environment through conscious more local consumption, because we have the vision of a world in which we are consciously lived. A world that is diverse and diverse, where there is respect and appreciation for each other and for our environment.
For this reason, we are pleased to welcome every customer who gives their employees the opportunity to take a step towards regionality with us. 🙂
With our offer for a purely digital benefit card, which many of our customers also prefer, we are already making a contribution to environmental protection.
Traditional Bank and Payment Cards not only use additional plastic in production, but must also be laboriously disposed of as electronic waste due to the chip or magnetic strip they contain.
It is also important to us to give something back to society as a whole. For this reason, there is also a donation feature in our Regional Hero app, which will be gradually expanded this year. Here, we give non-profit organizations from all over Germany a stage in their region and at the same time ensure that a donation can be made within a few clicks using the available credit in our Regional Hero app.
Conclusion:
Corporate social responsibility is not a passing fad, but a necessity that lays the basis for long-term entrepreneurial success. Companies that are committed to CSR not only have financial benefits in the long term, but can also strengthen their relationships with stakeholders, improve their reputation and contribute to solving global challenges. In a world that is increasingly characterized by social and environmental responsibility, companies are well advised to gradually regard CSR as an integral part of their business strategy.
