JFK's Take 

Corporate Social Responsibility by Definition

Business has its own language. Day by day and year by year, colloquialisms have crept into the business community –been tried and tested – and are now an everyday part of business vernacular. Today, terms such as Mission Statement, Open Door Policy, and Executive Summary exist and are used daily – their meanings well understood.

However, there was a time that an Open Door Policy wasn’t a part of all corporate Human Resources structures and as the concept was being developed, so, too, was the definition. For example, today, we know an Open Door Policy exists to increase communication between employee and company without fear of consequence. Company specifics of an Open Door Policy vary from corporation to corporation - but these days; at least, if you say Open Door Policy, most people know what you are talking about.

Corporate Social Responsibility and its meaning are now in the development stage. Companies are instituting CSR policies while working through the definition and impact to their business’ bottom line.

So then, what is the definition of Corporate Social Responsibility?

I’ve discovered several definitions provided by companies and organizations instituting socially responsible business practices; companies that have an eye on and a vested interest in the future. Most of these definitions are located on company websites, right next to Mission Statements and other corporate governing policies.

The John F. Kennedy School of Government at Harvard University, as part of a Corporate Social Responsibility Initiative, provides this definition:
We define corporate social responsibility strategically. Corporate social responsibility encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm.

World Bank defines Corporate Social Responsibility:
Corporate social responsibility is the commitment of businesses to contribute to sustainable economic development by working with employees, their families, the local community and society at large to improve their lives in ways that are good for business and for development.

The World Business Council for Sustainable Development provides this definition:
Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

Finally this definition was found in the dictionary of sustainability management (www.wiserearth.org):
A business outlook that acknowledges responsibilities to stakeholders not traditionally accepted, including suppliers, customers, and employees as well as local and international communities in which it operates and the natural environment.

These definitions, although very similar, possess slightly varying points of view. Common among all, however, are the ideals of positive impact, sustainability and an overall bottom line impact to society, the environment and belief in measuring the success of a business by more than just dollars and cents.

Unlike previously-newer business terminology, this is the first defined corporate declaration that offers hope and plays a role in maintaining, bettering and preserving our world.

Most definitions speak in terms of employees and their families. The fact that employees and their families are a consideration when creating company corporate policy is a huge leap from the days of long work weeks, tied to a desk, working tirelessly and thanklessly for the greater good of a company (am I really remembering those days or have I been watching them played out in the Golden Globe-winning, Emmy-nominated TV series on AMC, Mad Men?).

The word environment appears over and over. Again, committing to environmentally friendly business practices is a huge step in the right – very right – direction. Large corporations for years have been targeted by environmental groups for non-sustainable practices. Today, it’s encouraging that clearly - and in black and white – these same companies are stating that they will make environmentally conscious decisions because they, too, believe in the future of the world and share a responsibility to protect it.

I agree with all the definitions I’ve read. I am encouraged by their positive messages. I am encouraged that those with the ability and resources to make a better world are doing it.

To those definitions, I would add another. Corporate Social Responsibility is:
Corporate governance making business decisions based on responsibility and consequence for their direct and indirect business practices. Company policies developed with consideration for stakeholders/shareholders; associates and their families; communities both local and worldwide; environmental impact in the present day and for the future and hope and accountability for the overall sustainability of the world.

Posted by JFK at Tuesday ~ August 08, 2008

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