Corporate Social Responsibility (CSR) is an approach that provides opportunities for companies to improve their business practices while also contributing to societal needs. CSR is a way to ensure that companies have a positive impact on society at large (Carroll et al., 2014). The chapter describes how CSR can be used to support or oppose specific policies or regulations; for example, if a company does not want to pay its fair share of taxes, it may engage in CSR activities such as donations or sponsorship programs (Carroll et al., 2014). I found the concept of corporate social responsibility most important in this chapter. It is a critical topic that should be discussed in every business class and the workplace. It is the one that talks about how companies can be responsible for their actions and the impact they have on society. The method discussed was finding out if a company is responsible by looking at its mission statement and what those goals are. The term I found the most interesting was “stakeholder management.” I also realized that there is more to corporate social responsibility than being environmentally friendly and that it should be considered when evaluating a business. We are already being asked to make decisions about how our companies are run, and we need to be able to make informed decisions about those questions. Corporate social responsibility is not just about doing good things but also about not doing bad things. I believe this is especially important because sometimes companies can get away with doing terrible things—for example, if they don’t pay their employees moderately or if they don’t treat their workers well enough. Even though these companies may seem like they are doing the right things, they are still harming the environment and others by not treating them well enough. Accordingly, I think it’s essential for businesses to be careful about what kind of decisions they make so that everyone can get ahead in society without being harmed by those decisions. We also discussed the concept of corporate social responsibility and how it is a way for a corporation to create positive change in the world. We discussed how this positive change could be done by donating money, time, or products to charities or community projects. We also discussed how this positive change could be done by promoting good work culture within the company.
Socially responsible investing (SSI) is any action taken by an investor or firm to ensure that their investment profits do not negatively impact the environment or human rights. For example, if you were to buy shares in a company that produces products using slave labor, you would be practicing SSI because you are “trying to avoid contributing to the practice of slavery” (Carroll et al., 2014). In addition, socially responsible investing is characterized by its focus on long-term value creation rather than short-term profits alone or immediate returns (Carroll et al., 2014). Impact investing refers to SSI that goes beyond merely avoiding negative impacts on the environment or human rights. Impact investing involves using an approach similar to socially responsible investing but focusing on investments with a more significant potential for positive social change rather than just financial return. Ethical, socially responsible, and sustainable investing is a way the average citizen can demonstrate their concern for CSR. Because CSR encompasses more than just business practices, it is essential to understand that there are many different ways that people can practice CSR. Some examples include:
- Investing in companies that have positive social impacts on socio-economic factors such as health and education;
- Investing in businesses that are making efforts to reduce their carbon footprint;
- Investing in products or services from companies that are known for being environmentally friendly;
- Investing in companies that have developed programs to help employees support each other through their workday; and/or
- Invest in companies that have programs that help employees volunteer at local non-profits (e.g., the Boy Scouts).