What Is Social Responsibility Agreement

Shareholders and investors use their capital through socially responsible investment (SRI) to encourage behaviour they consider responsible. However, definitions of what constitutes ethical behaviour vary. For example, some religious investors in the United States have withdrawn investments from companies that violate their religious views, while secular investors are separating from companies that they believe impose religious views on workers or customers. [142] According to an article in the Harvard Business Review, there are three areas of practice in which CSR can be divided. Theater one focuses on philanthropy, which includes donating money or equipment to non-profit organizations, engaging in community initiatives, and employee volunteerism. This is characterized as the „soul“ of a company, expressing the social and environmental priorities of the founders. The authors argue that companies practice CSR because they are an integral part of society. The Coca-Cola Company donates $88.1 million annually to various humanitarian and environmental education organizations. Another example is PNC Financial Services` „Grow Up Great“ educational program. This program provides essential resources for school readiness in underserved communities where PNC operates. [111] Anselmsson and Johansson (2007)[171] assessed three areas of CSR performance: human responsibility, responsible product management and environmental responsibility. Martinuzzi et al.

described the terms and wrote that human responsibility is „that the company must deal with suppliers who adhere to the principles of natural and good breeding and breeding and who also maintain fair and positive working conditions and working environments for their own employees. Product stewardship means that all products come with a complete and complete list of content, that the country of origin is indicated, that the company complies with its letters of intent and assumes responsibility for its products. Environmental responsibility means that a company is perceived as environmentally friendly, ecological and harmless. [172] Jones et al. (2005) found that environmental issues are the most frequently reported CSR programs among major retailers. [173] In addition, companies can pursue CSR for strategic or ethical purposes. From a strategic point of view, CSR can contribute to corporate profits, especially when brands voluntarily report the positive and negative results of their efforts themselves. [9] In part, these benefits stem from increased positive public relations and high ethical standards aimed at reducing business and legal risks by taking responsibility for the conduct of business. CSR strategies encourage the company to have a positive impact on the environment and stakeholders such as consumers, employees, investors, communities and others. [10] From an ethical perspective, some companies will adopt CSR policies and practices based on management`s ethical beliefs. For example, a CEO may believe that harming the environment is ethically reprehensible.

[11] Corporate social responsibility encompasses six types of corporate social initiatives:[3] A second statement by Janssen and Vanhamme is that of mutual altruism. This is a key concept in evolutionary psychology that is supposed to fuel all human behavior: people only do something when they can get something in return. However, in the case of CSR and ethical consumption, consumers receive very little in exchange for their investment. .