What is Corporate Social Responsibility (CSR)?
Self-regulation targeted at contributing to societal goals through philanthropic, or charitable activities, and ensuring that an organization adopts ethically-oriented practices in its operations
Practice whereby companies manage their business activities to impact positively on society.
Self-imposed responsibility of commitment by companies to manage the social, environmental and economic outcomes of their operations responsibly, according to public expectations
Giving back to the society through good deeds
CSR activities include;
- Company policies that ensure ethical business practices are followed in working with partners.
- Reinvesting profits made from company business in health and safety or environmental programmes that will benefit the society.
- Supporting charitable organizations in the communities where a company operates.
- Promoting equal opportunities for men and women at the executive level.
- Engaging in philanthropic activities, including sponsorship of programmes in the community where a company operates.
- Providing scholarship for people in the community, among others.
Difference between Implicit and Explicit CSR
What is implicit CSR?
- An involuntary practice of showing a company is good corporate citizen through indirect means such as adherence to ethical practices in business, good customer relations, values and norms that are beneficial to the wider society.
- Covert show of good will and best practices in company operations
- By explicit CSR we refer to corporate policies which assume and articulate responsibility for some societal interests. They normally consist of voluntary programs and strategies by corporations which combine social and business value and address issues perceived as being part of their social responsibility by the company.
- Consists of voluntary corporate policies, programs and strategies
Implicit and Explicit CSR
- Implicit CSR is not a voluntary and deliberate corporate decision but comes as part of a company’s institutional activities and policies, that is, the quest to be a good citizen;
- while explicit CSR is deliberate, or voluntary, strategy aimed at giving back to the society in terms of good deeds of various kinds.
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