The relation between CSR and Sustainability

1-???What is CSR?

Corporate social responsibility (CSR) refers to both managerial practices focused on welfare creation (ML, Barnett, 2007) as per Brown the definition of CSR is the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society (Bowen, H. R, 1975).

The Modern definition of corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental. The term corporate social responsibility (CSR) refers to practices and policies undertaken by corporations that are intended to have a positive influence on the world. The key idea behind CSR is for corporations to pursue other pro-social objectives, in addition to maximizing profits. Examples of common CSR objectives include minimizing environmental externalities, promoting volunteerism among company employees, and donating to charity. (FERNANDO, 2021)

As important as CSR is for the community, it is equally valuable for a company. CSR activities can help forge a stronger bond between employees and corporations, boost morale, and help both employees and employers feel more connected with the world around them.

For a company to be socially responsible, it first needs to be accountable to itself and its shareholders. Often, companies that adopt CSR programs have grown their business to the point where they can give back to society. Thus, CSR is typically a strategy that's implemented by large corporations. After all, the more visible and successful a corporation is, the more responsibility it has to set standards of ethical behaviour for its peers, competition, and industry.

In 2010, the International Organization for Standardization (ISO) released ISO 26000, a set of voluntary standards meant to help companies implement corporate social responsibility. Unlike other ISO standards, ISO 26000 provides guidance rather than requirements because the nature of CSR is more qualitative than quantitative, and its standards cannot be certified. ISO 26000 clarifies what social responsibility is and helps organizations translate CSR principles into practical actions. The standard is aimed at all types of organizations, regardless of their activity, size, or location. And, because many key stakeholders from around the world contributed to developing ISO 26000, this standard represents an international consensus.

1.1 Examples of Corporate Social Responsibilities:

Starbucks has long been known for its keen sense of corporate social responsibility and commitment to sustainability and community welfare. According to the company, Starbucks has achieved many of its CSR milestones since it opened its doors. According to its 2020 Global Social Impact Report, these milestones include reaching 100% of ethically sourced coffee, creating a global network of farmers and providing them 100 million trees by 2025, pioneering green building throughout its stores, contributing millions of hours of community service, and creating a ground-breaking college program for its employees. Starbucks' goals for 2021 and beyond include hiring 5,000 veterans and 10,000 refugees, reducing the environmental impact of its cups, and engaging its employees in environmental leadership. The 2020 report also mentioned how Starbucks planned to help the world navigate the coronavirus pandemic. The company's response to the pandemic focuses on three essential elements: prioritizing the health of its customers and employees, supporting health and government officials in their attempts to mitigate the effects of the pandemic, and showing up for communities through responsible and positive actions.

1.2 Conclusion:

·???????The definition of Corporate Social Responsibility (CSR) is practices and policies undertaken by corporations that are intended to have a positive influence on the world. The key idea behind CSR is for corporations to pursue other pro-social objectives, in addition to maximizing profits.

·???????ISO 26000 including set of standards that help companies implement corporate social responsibility and translate their strategies in to practical actions

2-???What is sustainability?

Sustainability may then be defined as maintaining well-being over a long, perhaps even an indefinite period. This covers largely the environmental dimension of the triple bottom line, but environment and sustainability are not synonymous. On the one hand, some forms of environmental degradation are both relatively easily reversed and highly noxious in the present—many forms of air and water pollution, for instance. These have a strong well-being aspect. Indeed, in the EU Guidelines for Impact Assessment they appear both under the environmental and the social dimension (Commission, 2005).

Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainability is composed of three pillars: economic, environmental, and social—also known informally as profits, planet, and people. Increasingly, companies are making public commitments to sustainability through actions like reducing waste, investing in renewable energy, and supporting organizations that work toward a more sustainable future. (Grant, 2020)

Some of heritage consists of resources needed for production or, to put it differently, for our survival. It is not always easy to know which ones these are, as resources essential today may be substituted by others tomorrow; and genetic resources potentially useful for medicine may be lost before we have even identified them. Other resources are appreciated for their esthetical, scientific or ‘intrinsic’ value (such as the existence of orangutans, Picasso paintings, or knowledge of black holes). Some of these are not easily lost or are well protected (knowledge, works of art); others are more difficult to preserve (cultural-historical landscapes).

As Robert Solow has pointed out, we cannot avoid using up some non-renewable natural resources, but this does not mean that these will necessarily become completely exhausted. In Solow’s view, natural resources (whether renewable or non-renewable) can always be substituted by capital. This can take the form of new materials (say, plastic for steel) or smaller amounts of the natural resource for the same amount of end product (e.g., energy efficiency). New natural resources are harnessed while others become obsolete before they are depleted. An example is the substitution of coke for charcoal in the iron industry as wood for charcoal was becoming scarce, or the transition from hunting and gathering to agriculture in tandem with increasing population densities. In any case, capital continues to increase as natural resources become scarcer?(Solow, R.M, 1992)

2.1 Conclusion:

·???????Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs or maintaining well-being over a long, perhaps even an indefinite period.

·???????Sustainability is composed of three pillars: economic, environmental, and social.

3-???The relation between CSR and Sustainability:

In the process of manufacturing, a company consumes certain natural resources belonging to the society, though it pays for it. Every manufacturing process causes damage to the nature by the exploitation of natural resources, pollution and harm to the environment in many ways (extraction of minerals, release of effluents after manufacture; and pollution of water, soil, air, etc.). We continue to encourage establishing manufacturing companies because we need products, employment and revenue in the form of taxes. However, the law prescribes an acceptable level of pollution i.e. the effluent. But, effluent gets accumulated and over a period of time it reaches unacceptable levels. At that stage, it is not possible to close the industry as many interests are developed in the process, like employment, dependent subsidiaries and revenue in the form of taxes to the government. Logically, the polluter must pay for the damage and to repair the same, that is in fact the basis for the concept of Corporate Social Responsibility (CSR) (Khanna, Swati J.P. Sharma, 2014)

Damage done to the nature cannot be repaired, and cannot be compensated in the form of money; the concept of CSR is trying to find out a monetary equivalence to the damage done. This damage prevents the idea of the sustainability of the natural resources.

The principle of sustainable development as it is understood today is usually traced back to the definition offered by the Brundtland Commission: sustainable development is, “a form of development that meets the needs of the present without compromising the ability of future generations to meet their own needs” [HAUFF 1987:46]. This principle relates to the whole of society and entails a clear political objective. Social, ecological and economic concerns, the Brundtland Commission concluded, must be given equal consideration if sustainable development is to become a reality. The sustainability principle additionally includes the ideas of both intragenerative and intergenerative justice; Companies are challenged to help society as a whole to achieve a sustainable development. Sustainable management thus revolves around what the company does to advance sustainability and attempts to maximize its contribution in this respect. The minimum requirements for sustainability in society as a whole are reviewed systematically and efforts are made to ensure that they are always met. Like the principle of sustainability itself, sustainable management covers all three dimensions of sustainability (that is to say the ecological, economic and social aspects).

4-???Conclusions:

·???????There is direct relation between CSR and the sustainability of the resources as the more consumption of the resources the less sustainability of the resources

·???????Companies are challenged to help society as a whole to achieve a sustainable development. Sustainable management thus revolves around what the company does to advance sustainability and attempts to maximize its contribution in this respect.

Bibliography

Bowen, H. R. (1975). Social responsibilities of the businessman. In E. H. Harper & Row.Bowman, A strategic posture toward corporate social responsibility (pp. 49-58). California: California Management Review.

Commission, E. (2005). Impact Assessment Guidelines. EC Document No. SEC(2005) 791. Brussels, Belgium.

FERNANDO, J. (2021, Sep 24). Investopedia. Retrieved from https://www.investopedia.com/terms/c/corp-social-responsibility.asp: https://www.investopedia.com

Grant, M. (2020, Oct 12). Investopedia. Retrieved from https://www.investopedia.com/terms/s/sustainability.asp: https://www.investopedia.com

Khanna, Swati J.P. Sharma. (2014). Corporate Social Responsibility, Corporate Governance and Sustainability: Synergies and Inter-relationships. Indian Journal of Corporate Governance, 14-38.

ML, Barnett. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. In B. ML, Stakeholder influence capacity and the variability of financial returns to corporate social responsibility (pp. 794-816). Academy of Management Review.

Solow, R.M. (1992). An Almost Practical Step Toward Sustainability; Resources for the Future. Washington: DC, USA.