What are the 7 Principles of Corporate Social Responsibility (CSR)?

Are you part of the 77% of consumers who are motivated to purchase from companies committed to making the world a better place?

If so, you probably believe corporate social responsibility (CSR) is important!

Corporate responsibility is the way a company takes responsibility for its actions and their impact on employees, stakeholders and communities. It includes the way your company conducts its business, how it manages its impact on the environment, how it treats its employees and how it supports community activities that aim to solve social problems such as poverty or discrimination.

Photo by Sean Pollock on Unsplash

The International Organization for Standardization defines the 7 Principles of Corporate Social Responsibility as:

1. Accountability

2. Transparency

3. Ethical behavior

4. Respect for stakeholder interests

5. Respect for the rule of law

6. Respect for the international norms of behavior

7. Respect for Human Rights

   

1. Accountability: An organization is accountable for the effects of its actions on society and the environment.

Example: Making socially and environmentally conscious investments. 🎯

2. Transparency: A transparent company offers information so that the engaged stakeholders can comprehend the problems that are important to them.

Example: Publishing an annual Corporate Social Responsibility Report to inform stakeholders about company goals and progress towards them. 🎯

3. Ethical Behavior: Fair treatment of all stakeholders, including the leadership team, investors, employees, suppliers, and customers, is how organizations demonstrate ethical behavior.

Example: Participating in fair trade. 🎯

4. Respect for Stakeholder Interests: Owners, members, consumers, and constituents, are a few examples of the stakeholders whose rights and interests need to be considered.

Example: Community volunteering and corporate policies that benefit the environment. 🎯

5. Respect for Rule of the Law: An organization must abide by all applicable laws and regulations.

Example: Following environmental laws and regulations. 🎯

6. Respect for International Norms of Behavior: It is unacceptable for a company to ignore or profit from wrongdoing.

Example: Instituting ethical business practices in the corporation's home country and overseas. 🎯

7. Respect for Human Rights: An organization should address the negative effects they cause and ensure they do not violate the rights of others (as described in the International Bill of Human Rights).

Example: Improving labor policies within the organization. 🎯

Starbucks

In its 2020 Global Social Impact Report, Starbucks reported:

• almost 100% of coffee was ethically sourced

• beginning to use green building throughout its stores

• contributing millions of hours of community service

• creating a college program for its employees

Home Depot

In its 2022 ESG Report, Home Depot reported:

• increasing the representation of female and underrepresented minority groups across the managers and above in the U.S. during 2021

• operating more sustainably, reducing electricity consumption in U.S. stores by about 11% year-over-year

• approximately 14,000 associates volunteered in communities across 150 cities nationwide

Corporate social responsibility (CSR) means a company is aware of its impact on the environment, culture, and society. If these things are important to you, look into the CSR initiatives of your favorite corporations.

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