Corporate social responsibility

"Corporate social responsibility (CSR) is an expression used to describe what some see as a company’s obligation to be sensitive to the needs of all of the stakeholders in its business operations. A company’s stakeholders are all those who are influenced by, or can influence, a company’s decisions and actions. These can include (but are not limited to): employees, customers, suppliers, community organizations, subsidiaries and affiliates, joint venture partners, local neighborhoods, investors, and shareholders (or a sole owner). CSR is closely linked with the principles of “sustainable developement" in proposing that enterprises should be obliged to make decisions based not only on the financial/economic factors but also on the social and environmental consequences of their activities". (From Wikipedia)

There are many reasons why companies would track, measure and report their CSR performance. Some see reporting as an effective communication and reputation management tool, building loyalty with customers, investors and suppliers around important values and issues. Others may choose to use it as a risk management tool. Not knowing the firm’s weaknesses and being unable to anticipate when it might come under fire can be very costly. CSR reporting could also bring market advantage by putting firms in a better position to be included in the Dow Jones Sustainability Index or the Jantzi Social Index, which, in turn, would lead to being included in ethical investment funds and portfolios. In any case, CSR reporting is a big step for any company to take, and mapping a realistic plan is very important. A firm may want to begin with a selfassessment, moving into reporting against wellaccepted global guidelines, such as those of the Global Reporting Initiative. With the proper steps, this process can evolve into an independently verified report with stakeholder engagement.