Corporate social responsibility or CSR operates in a way that is quite similar to a basic and independent procedure which aids a business with its supervision duties and attests to its enthusiastic conformity with moral values, international customs as well as the spirit of justice. A considerable number of Corporate Social Responsibility programs are in use across the world representing different international corporations. However, the same tactic is not utilized for all of them. There are a variety of possible different approaches towards CSR which are employed by several companies.
Many critics have noticed a certain degree of variation between the Continental European, the Anglo-Saxon and the Canadian approaches to Corporate Social Responsibility. The Canadian approach is also known as the Montreal discipline of CSR. The overall reaction faced by Corporate Social Responsibility is still somewhat mixed even within the continent of Europe.
Common Approaches
Philanthropy happens to be one of the most accepted approaches towards the topic of CSR. Monetary support and relief provided to disadvantaged communities in third world countries and institutes within the society fall under this category. However, such a move has garnered some amount of opposition from organizations who believe that this kind of an approach is not supportive of the development of the abilities of the local populace. According to them, a greater amount of sustainable growth is possible through community-driven development.
The move to integrate the Corporate Social Responsibility policy directly into the corporate strategy of a business or a company is another common tactic to CSR. A perfect example of such an approach would be the implementation of the procurement of Fair Trade coffee and tea by numerous industries, such as KPMG whose CSR executive endorses the product as it fits strongly into their responsibility towards their communities.
Details about the CSV Approach
Acquiring interest which results out of rising corporate responsibility is another approach towards CCSR. Also known as CSV or Creative Shared Value, this particular shared value system is built up on the notion that commercial success and public welfare are mutually dependent. Every business requires an efficient administration, a healthy and skilled workforce and sustainable resources to function properly. Society needs to expand and provide for aggressive and useful businesses in order to flourish. This leads to the generation of riches, tax revenues, income and most importantly, chances to do some philanthropy work. The CSV approach has received worldwide attention from the likes of eminent business leaders, noted scholars and heads of institutions. Most companies have been able to cultivate serious connections between their business policies and Corporate Social Responsibility through the CSV approach.
There are a number of other approaches to Corporate Social Responsibility which set companies against society, lay stress on the rates and margins of agreement with outwardly imposed environmental and social principles. The Creative Shared Value approach recognizes the trade-offs which are necessary between temporary prosperity and environmental or social objectives, but chooses to concentrate more on the chances for economical benefit from developing a social value plan into a commercial strategy.
A lot of companies make use of the policy of benchmarking in order to contend within their individual businesses in CSR policy, execution, and usefulness. The process of benchmarking has to do with evaluating CSR programs of the opponents along with calculating and estimating the effect that those strategies are likely to have on society and the ecosystem, and the reaction which the CSR policy of the competitor has on the clients. Only by the completion of a detailed analysis of competitor strategy and the performance of an internal policy review can an evaluation be obtained and a strategy worked out for the opposition with Corporate Social Responsibility programs.
Novel Approaches to CSR
A new innovative method towards funding Corporate Social Responsibility projects seeks to appease two different types of stakeholders – the ones who want to make use of the corporation to take part directly in communal enterprises and the others who opt for a safer way out and decide not to take a chance with capital – capital that, in the right hands, can be made use of to rake in more profits and also to provide the company with greater value. The primary idea, therefore, is to set up additional units that will pay more attention to social transformations rather than making monetary gain their sole area of focus. This specific type of approach to CSR is likely to appeal on a greater personal scale to public shareholders who want to make a direct investment towards a social program. If the public proposal proves to be a hit, not only will the shareholders gain from it but the company and even the social sponsors stand to rake in the profits. However, if the scheme turns out to be in vain, only the social investors suffer the loss of all the capital that they had invested in the scheme.
It will help provide an option to investors who want to persuade a corporation to engage in communal initiatives as well as offer those individuals a chance to benefit the environment while raking in profits at the same time.
Such unique approaches to Corporate Social Responsibility have already made a splash in some parts of the world, such as in Canada, which has led to unlikely partnerships being established between two like-minded corporations. These original approaches have also acted like building blocks and laid the groundwork for the introduction of new disciplines.
But the fate of these new CSR approaches is accompanied by various questions, most of which deal with the considerable advantages made in the area of social improvement for the benefit of the entire society. Other questions are raised regarding the allocation of more funds towards social service associations in order to achieve public initiatives or offer the business division an opportunity to satisfy better social targets. Whatever the answer may be, the bond between public and finance has started on their substantial experiment regarding the most capable approach towards Corporate Social Responsibility.
