- Mario Anamaría, administrator of the training area ‘Marketing and Agrifood Systems’ at CIHEAM Zaragoza, addresses in this article the commitment of today’s firms with corporate social responsibility and sustainability
| Corporate Social Responsibility: Businesses Today and their Commitment with Sustainability. An article by Mario Anamaría, administrator of the training area ‘Marketing and Agrifood Systems’ at CIHEAM Zaragoza. |
According to the International Labour Organization (ILO), Corporate Social Responsibility (CSR) “is the set of actions that a company considers so that its activities may have a positive impact on society and can affirm the principles and values by which the company is governed, both in its own internal methods and processes as well as in its relationship with other actors”. It involves interaction between three areas: economic, social and environmental, where sustainability is understood as the balance between the three.
The concept and foundations of sustainable development were defined for the first time in the Brundtland report, published in 1987 by the UN World Commission on Environment and Development: “Sustainability meets the needs of the present without compromising the ability of future generations to meet their own needs”. In order to achieve this goal, a balance must be found between economic and social growth and conservation of the environment.
Likewise, the 2015 Resolution approved by the General Assembly of the United Nations, “Transforming our world: the 2030 Agenda for Sustainable Development”, seeks to achieve the three dimensions of sustainable development: economic, social and environmental – in a balanced and integrated manner. The 17 Sustainable Development Goals (SDG) and 169 associated targets, are “universal and involve the entire world, developed and developing countries alike” including all sectors of society and being a commitment for us all.
In 1953, Howard Bowen developed the concept of CSR as “the obligation of businessmen to pursue policies, to make decisions or to follow lines of action that are desirable in terms of the objectives and values of society”. This concept englobes various scopes, from conveying social and environmental concern through their business transactions to being socially responsible towards their employees.
Businesses are attaching greater importance to social and environmental awareness and are taking a different approach to their activities and functions, in how they interact with their stakeholders, transmitted through their culture and values and enabling them to care for and improve the environment. Today, being socially responsible has a significant impact on a company’s reputation and image.
In recent years, due to a series of business scandals, firms have lost the trust of citizens who are increasingly questioning the actions of organisations and demanding greater transparency and responsibility. Consumers want to know what raw materials are contained in their products. They want to know how they are manufactured and whether the production process is harmful to the environment. They also want to know what the firm is doing to protect the environment and to comply with standards, in other words, consumers are anxious to have a business sector that is committed to the environment and to sustainability, and that respects human rights.
Current society requires businesses to do more than just reap profits. Society expects companies to contribute to social development and engage in fair trade, with a commitment to their employees. By following these initiatives, a company can improve its market image and decrease any negative perception that consumers may have.
Today, more and more firms are aware of the importance of CSR for their success and have incorporated it into their business strategy, aligned with their priorities and culture. Consumers appreciate this and connect with socially responsible firms, and are often willing to pay more for their products and services, revealing greater customer loyalty to the businesses practising CSR.
According to the United Nations Industrial Development Organization (UNIDO), if applied correctly, CSR can improve market access, increase transactions, improve productivity and enhance quality, brand image and recognition, customer loyalty, decision-making and risk management.
From the business perspective, the social pillar is based on reinsertion and combating social exclusion, ensuring gender equality and equal pay for men and women, and promoting solidarity, etc. The economic pillar is based on the recycling of products and use of renewable raw materials, and on the development of an economically responsible system and the third, environmental, pillar is based on the commitment to reduce the risks of environmental impact, avoid overexploitation of renewable resources and depletion of non-renewable resources, and reduce greenhouse gas (GHG) emissions, etc.
In order to support the small and medium-sized enterprises (SMEs) in their implementation of a CSR-based management approach, UNIDO developed a management tool called REAP (Responsible Entrepreneurs Achievement Programme). The programme, based on the Triple Bottom Line (TBL), has been successful in developing countries, enabling them to measure corporative performance in economic, social and environmental terms. This is based on the premise that in order for an organisation to be sustainable, it has to be financially secure without compromising its competitivity, and be able to minimise or eliminate possible environmental impacts and behave in accordance with society’s expectations.
