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Corporate Social Responsibility (CSR)

Definition, Explanation

The notion of Corporate Social Responsibility is the responsibility of a company in the whole society. Corporate Social Responsibility demands a company to act in a way that takes responsibility beyond the existing legal regulations for ecologic, economic and social long-term effectiveness. The idea is that companies profit from rights in society and should assume duties in society in turn. CSR is meant to end the inconsiderate exploitation of people and nature. As a matter of fact, there is no institutional, un-argued definition of CRS.

The fields of action in CSR are derived from the “Three-Towers-Model” of the Enquete-committee of German parliament: “Protection of man and environment – goals and framework conditions of a future-oriented positive development” (1998):

• Ecologic long-term effectiveness
  No destructive exploitation of nature but preserving nature for future generations
• Economic long-term effectiveness
  Not live on the expense of descending generations but live in a way that makes economy long-term stable (state debts, pension etc.)
• Social long-term effectiveness: every man and woman should be guaranteed a life in dignity. Social tensions should be limited by a minimum of justice

Companies motivation for pursuing these goals are, besides an ethic attitude, economic interests as well. Even if CSR projects are not aimed at the actual purpose of the company, companies try to improve their images and the way they are perceived in society. Examples are participation in social organizations or environmental commitment. A further goal of CRS is improving employees’ motivation, contentment, collaboration and in effect the working atmosphere. Knowing those coherencies, companies expect direct effects on their economic success.

CSR commitment is in all parts voluntary and is done by the company in self-responsibility. Environment- and social associations mean to replace that voluntaryness by concrete agreements and legal regulations. The introduction of authoritative standards can be perceived in cachets like “Blauer Engel” or “ISO 14001” (international environmental standard 14001).

In Germany, the involving of ethic principles in entrepreneurial actions has a long tradition. Some entrepreneurs took care of the wellness of their employees, also for preserving performance, back in times of early industrialisation.

Tips, Checklist

• Be sure to buy products with cachets of environment-sensitive economics: Blaue Flagge, Blauer Engel, Euroblume, EU Bio cachet, ÖkoControl cachet are some examples
• Get to know where your product came from. Who might have paid with his/her health for the low price in the store? Is there child work in there? Have unrestorable natural resources been destroyed?
• No matter whether you are an employer or employee: assess the company you work in regarding the idea of CSR. Where does your company obtain the goods and materials from? Can work processes be optimized ecologically? What ways of distribution are used? Where is your company committed ecologically or socially? Do not be shy to make your suggestions!

Last update: 07/19/2010