The principle of corporate social responsibility (CSR) is becoming increasingly important in our world in search of more sustainability and justice. But what exactly is behind the principle of CSR?
Corporate social responsibility (CSR) describes the responsibility of companies to contribute to the sustainable development of society through ethical and morally correct management. It is important that the companies' voluntary commitment goes beyond the existing legal requirements of the respective country.
Corporate responsibility encompasses social, environmental and economic aspects that are set out in various international reference documents such as the United Nations Guiding Principles on Business and Human Rights or ISO 26000. generally acts of fair business practices, an employee-oriented personnel policy, the careful use of natural resources, environmental and climate protection, a serious commitment on site and at production sites as well as the responsibility in the supply chain.
Already in ancient times, polymaths like Aristotle asserted that the free economy should not be pursued exclusively for its own good, since every human being has duties towards his own society. In Europe, the model of the “Honorable Merchant” has existed since the Middle Ages, which, despite its activities, always had to adhere to given customs and social norms.
Probably the best-known example of an early type of CSR is the Fuggerei in Augsburg, which still exists today. Socially committed merchants act as patrons and donors and build, for example, residential buildings for their employees. They thus contributed very early to the improvement of living and working conditions in their society. CSR platforms are very different these days, and many organizations are now focusing on providing CSR software to help companies meet their responsibilities.
Nowadays, the terms corporate social responsibility and sustainability are used as synonyms in most businesses. In theory, however, the concept of CSR is much more precise than that of sustainability. More precisely, it is about the specific contribution that companies make to sustainable management.
The term corporate responsibility has also been increasingly used in recent years to emphasize the economic dimension of sustainability. Moreover, a misunderstanding can be avoided, because “social” in CSR is often translated as social. This often leads to the misconception that the concept of CSR is limited to the social dimension of corporate sustainability.
Further, "corporate citizenship" (CC) refers only to engagement that goes beyond a company's actual business activity, and thus includes the realm of corporate charitable engagement. Corporate citizenship is therefore essentially limited to sponsorship, donations and the activities of the foundation.
