Since the concept started to circulate corporate boardrooms, Corporate Social Responsibility (CSR) trends have grown more and more popular around the world. The reality of new and renewed global challenges are highlighting the critical importance of CSR in the market. Social expectations from customers of all kinds are showing that consumer brands and companies of all sizes are increasingly expected to regularly emphasize CSR initiatives. 

As the concept of CSR has grown, so too have the methods in which companies have engaged with these principles. While some companies seek to remain broad and focused on various global initiatives, many choose to be hyper-focused on the principles that are the most important to their stakeholders.

This article reviews an approach to begin or deepen a CSR program and offers suggestions for some of the leading ways to weave CSR principles into the fabric of a company.

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0The Foundations of CSR 

It is important for any company implementing a CSR program to first understand the principles of CSR. Defined, CSR is a self-regulating framework that helps a company to be accountable to itself, its stakeholders, and to the public towards its own impact on environmental and societal externalities. 

Implemented correctly, a CSR program will guide a company towards more ethical behavior for the benefit of all of its customers, employees, and broader stakeholders. A proper CSR program is never an afterthought, but instead woven into the business’ processes and products. For many legacy companies, this will take time, resources and considerable management buy-in. 

In practice, a CSR program might lead companies towards implementing an ethical filter for its raw material or vendor selection, for example, or towards providing greater benefits and flexibility to its employees. Some of these changes will undoubtedly affect the bottom line. Implementing a CSR program is not about cutting costs, but instead correctly acknowledging that businesses, like people, have a societal responsibility to improve the lives of its stakeholders. 

For a CSR program to be effective, the goals and results of a CSR program should be made available publicly. This concept is also generally referred to as triple bottom line reporting - that is, reporting that takes into account profits, people, and planet. Making results publicly available helps to ensure that a company understands its greater impact, and can be held accountable for its decisions.

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9 Common Pillars of CSR and What They Mean

Whether you are a veteran in the space or new to CSR, it’s always helpful to review a list of the principles for corporate and social responsibility. Here is a list of the 9 most cited pillars of CSR and their underlying meaning:

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Stakeholder engagement

Identify and engage with all stakeholders, including employees, customers, suppliers, communities, and investors, to understand their needs and concerns. 

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Transparency and accountability 

Openly share information about your company’s CSR practices, impacts, and performance. Accountability means taking responsibility for the consequences of the actions of your business. 

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Sustainable business practices

Adopt sustainable practices that consider the long-term environmental, social, and economic impacts of your business operations. 

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Respect for human rights

Promote human rights within your operations and supply chain, ensuring fair treatment and safe working conditions for each of your vendors.

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Community development

Contribute to the well-being of the communities in which a company operates. Common areas of community development and initiatives are education, healthcare, and infrastructure.

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Diversity and inclusion

Promote diversity, equity and inclusion within the workplace to foster a fair and inclusive work environment. 

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Employee well-being

Prioritize health, safety, and well-being of your employees, providing a supportive work environment and promoting work-life balance and financial security. 

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Supply chain responsibility

Ensure that your supply chain adheres to ethical and responsible business practices by promoting fair labor conditions and environmental sustainability.

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Philanthropy and charitable giving

Contribute and engage with philanthropic organizations, supporting causes that are near and dear to your hearts or business values.

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Strengthening your Corporate & Social Responsibility Program

If you have a program in place and are looking to change, add or deepen your corporate responsibility initiatives, a first step could be to reflect on your business and your industry and to understand what levers you and your business have to make positive changes. There may be certain obvious areas (i.e. supply chain responsibility if you are an apparel company), but there are numerous ways to integrate CSR into each department of your business. 

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Aside from a customer-facing product, there are likely areas for improvement in all departments of a business, including even finance, accounting, and human resources. Of course, steps available to each company are subject to a company’s business and products offered. 

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Banking with Atmos to Enhance your CSR 

One of the easiest methods to enhance your CSR program is to align your cash deposits with a banking institution that contributes to positive impact. Atmos offers saving accounts that exclusively fund climate infrastructure like solar and energy efficiency. In addition to offering the only bank account that exclusively funds climate-positive projects and shows you the impact of your money, Atmos offers market-leading rates to earn higher returns while deepening your own impact.

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Learn more about Atmos Business Banking.