The importance of CSR in business
The purpose of large corporations in impact industries, such as software development, pharma, energy, mobility, and others, has gone beyond only generating profit. We are talking about a part of their activity, increasingly important and visible – corporate social responsibility (CSR). CSR is a concept with roots in the American business culture of the ’40s, which later spread throughout the world and became indispensable in any organization that develops healthy principles. Therefore, regardless of the field of activity, fintech, automotive, or manufacturing – most companies are actively involved in causes based on their values. They participate in fundraising actions, environmental protection, education, sustainability, and other campaigns to improve community life.
A brief history
The first initiatives to support social causes belonged to Andrew Carnegie, followed by John. D Rockefeller donated over half a billion dollars in the late 1800s. However, it was not until the 1940s that businesses, as an entity, could contribute to social causes. Howard Bowen, an American economist, is often considered the “father of CSR.” In 1954 he published the book Social Responsibilities of The Businessman, in which he connected corporations’ responsibilities with society’s needs, militating for basic ethics applicable in business. Three ideas from the book that are still applicable today are:
• Creating jobs and economic growth through proper business conduct.
• Managing the business through fair practices towards employees and customers.
• Increased involvement in improving environmental conditions and the community where the business operates.
CSR in 2022
Though it’s a concept born to create a system that helps organizations offer support to the community, nowadays, it has also become an element with an impact on business. We are specifically talking about the transformation of CSR into an aspect of employer branding. It’s an essential part of an organization’s communication, aimed at employees and potential employees. Today a candidate is not just looking for a job. He’s looking for a place aligned with his personal values that can help him bring his own contribution to the community.
According to Forbes, employee engagement is the emotional commitment the employee has to the organization and its goals.
Also, some of the key trends in the following years we consider worth focusing on and, according to kindlink.com, will be:
- Employee Engagement – a higher grade of involvement in your workforce means higher performance on projects and better retention;
- Consumer Engagement – the way companies, will manage to create and maintain a connection with their audience;
- Transparency – the more open is the company’s communication towards its actions, the higher the credibility.
- Progress Over Perfection – is probably the most sustainable trend because people often appreciate the small steps taken in the evolution of a company rather than greenwashing.
Top of the best CSR programs in Romania
Community Index is the most complex annual ranking of investment projects in communities, which includes 19 categories. The implemented projects are passed through a scorecard comprising 46 questions to determine the relevance and impact of the projects.
The latest data collected by the founding company of the index shows that the investment market in support of communities has grown in recent years and is worth more than 80 million euros a year. The leading causes to which organizations channel their funds are education, health, or social reasons.
AROBS managed to rank in the top three companies in the Employee Engagement category by obtaining Silver Recognition with the Fight For Your Green Cause 2022 program. A program meant to engage employees in the search for environmentally-oriented causes but also supports the winning projects for immediate implementation in the community.
At the same time, our company is involved annually in activities dedicated to the community – from sports, and sustainable actions, to education.
Read more about them on our AROBS Green page.