The importance of corporate social responsibility

Apr 29, 2014

Many companies are concerned about their corporate social responsibility, or ensuring that the areas they invest and do business in benefit from their presence. Companies that commit to increasing the standard of living in an impoverished area they have a manufacturing plant, vow only to source strategically, or implement green initiatives to help the environment all practice corporate social responsibility - and it's good for companies in the U.S. as well as overseas.

Good for communities
Business that engage in corporate social responsibility practices don't merely see an increase in positive press - they also have the opportunity to make a difference in the communities they operate in and parts of the world they receive their materials from. By looking over a prospective supplier's past before agreeing to a business arrangement, a company can discover if the supplier has committed serious violations that could be considered unethical. If the supplier is committed to renewable energy in its factories or shuns forced labor in impoverished countries, working with them could be a boost for a corporation seeking a new vendor. Not only does this help a corporation seeking new suppliers, it also improves local communities. Poorer areas of the world are sometimes taken advantage of as suppliers seek the cheapest materials at labor, but companies that engage in corporate social responsibility can improve the quality of life and reduce environmental pollution for
communities all over the world.

Good for companies
Having strong corporate social responsibility practices is essential for corporations to maintain their good reputations. Companies that are discovered to waste valuable resources or exploit laborers can suffer from plenty of negative press, and even boycotts or protests from upset consumers. For this reason, it's important for businesses to thoroughly investigate the companies they work with. They need to ensure their partners are committed to the same social responsibility principles to keep up their impressive reputations and avoid any scandal. Without checking on a business before entering an agreement, a company may have no idea that their partners use child labor, source materials from a rapidly depleting rainforest, or have been caught illegally dumping chemicals and causing environmental hazards. Keeping an eye on contractors will ensure a company lives up to its reputation as a respected corporation committed to responsible business practices.