{"id":51,"date":"2019-06-17T20:46:05","date_gmt":"2019-06-17T20:46:05","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/?post_type=chapter&#038;p=51"},"modified":"2024-04-25T01:48:01","modified_gmt":"2024-04-25T01:48:01","slug":"business-and-csr","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/chapter\/business-and-csr\/","title":{"raw":"Business and CSR","rendered":"Business and CSR"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Summarize the business relevance of corporate social responsibility<\/li>\r\n<\/ul>\r\n<\/div>\r\nAs <em>Business News Daily<\/em> writer Skye Schooley notes \u201cConsumers, employees and stakeholders are beginning to prioritize CSR when choosing a brand or company. They are holding corporations accountable for [affecting] social change with their business beliefs, practices and profits.\u201d[footnote]Schooley, Skye. \"<a href=\"https:\/\/www.businessnewsdaily.com\/4679-corporate-social-responsibility.html\" target=\"_blank\" rel=\"noopener\">What is Corporate Social Responsibility?<\/a>\" <em>Business News Daily<\/em>. April 22, 2019. Accessed July 18, 2019.[\/footnote] The results from public relations and marketing agency Cone Communications 2017 CSR survey illustrate how critical it is for businesses to get this right.[footnote]\"<a href=\"http:\/\/www.conecomm.com\/research-blog\/2017-csr-study\" target=\"_blank\" rel=\"noopener\">2017 Cone Communications CSR Study.<\/a>\" Cone. 2017. Accessed July 19, 2019.[\/footnote] Key findings:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">63% of Americans are hopeful businesses will take the lead to drive social and environmental change moving forward, in the absence of government regulation.<\/li>\r\n \t<li style=\"font-weight: 400;\">78% want companies to address important social justice issues.<\/li>\r\n \t<li style=\"font-weight: 400;\">87% will purchase a product because a company advocated for an issue they cared about.<\/li>\r\n \t<li style=\"font-weight: 400;\">76% will refuse to purchase a company\u2019s products or services upon learning it supported an issue contrary to their beliefs.<\/li>\r\n<\/ul>\r\nAs PR agency InkHouse CEO Beth Monaghan advises in an article for Forbes, \u201cBrands must stand for something because consumers demand it, but they must also live it.\u201d\u00a0[footnote]Monaghan, Beth, \"<a href=\"https:\/\/www.forbes.com\/sites\/forbesagencycouncil\/2018\/02\/13\/pr-for-a-purpose-bringing-corporate-social-responsibility-back-to-basics\/#3890df6454e9\" target=\"_blank\" rel=\"noopener\">PR for a Purpose: Bringing Corporate Social Responsibility Back to Basics<\/a>.\" Forbes. February 13, 2018. Accessed July 19, 2019.[\/footnote]\r\n\r\nFor specific examples of CSR in practice, scan the profiles on <em>Fortune<\/em> magazine\u2019s<a href=\"http:\/\/bit.ly\/ctwlist\" target=\"_blank\" rel=\"noopener\"> 2018 Change the World list<\/a>, recognizing companies that have made making a positive social impact a core part of their business strategy.[footnote]\"<a href=\"https:\/\/fortune.com\/change-the-world\/\" target=\"_blank\" rel=\"noopener\">Change the World<\/a>.\" <em>Fortune<\/em>. Accessed July 19, 2019.[\/footnote] <em>Fortune\u2019s<\/em> evaluation and ranking criteria also provide perspective reflect CSR best practices:\r\n<ol>\r\n \t<li>Measurable social impact: We consider the reach, nature, and durability of the company's impact on one or more specific societal problems.<\/li>\r\n \t<li>Business results: We consider the benefit the socially impactful work brings to the company. Profitability and contribution to shareholder value outweigh benefits to the company's reputation.<\/li>\r\n \t<li>Degree of innovation: We consider how innovative the company's effort is relative to that of others in its industry and whether other companies have followed its example.<\/li>\r\n \t<li>Corporate Integration: We consider how integral the initiative is to a company's overall strategy, and how well that strategy is communicated through the ranks and elsewhere.<\/li>\r\n<\/ol>\r\n<img class=\"alignright wp-image-345\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/06\/19195452\/4709903391_c0883952f4_b-250x300.jpg\" alt=\"A illustration of planet earth in dark and light blue with a large 1% in white. The graphic reads &quot;1% for the planet&quot;.\" width=\"350\" height=\"421\" \/>Although the majority of Change the World honorees have $1 billion in annual sales, CSR can be integrated into businesses at any scale. <a href=\"https:\/\/www.onepercentfortheplanet.org\/\" target=\"_blank\" rel=\"noopener\">1% for the Planet<\/a> is a global movement that started by two businessmen who shared a love for the outdoors and committed to contributing 1% of their sales to the environment\u2014regardless of profitability.[footnote]\"<a href=\"https:\/\/www.onepercentfortheplanet.org\/\" target=\"_blank\" rel=\"noopener\">1% for the Planet.<\/a>\" 1% for the Planet. Accessed July 19, 2019.[\/footnote] To quote Patagonia founder and 1% for the Planet co-founder Yvon Chouinard, \u201cThe intent of 1% for the Planet is to help fund these diverse environmental organizations so that collectively they can be a more powerful source in solving the world\u2019s problems.\u201d[footnote]Ibid.[\/footnote] If making an ongoing financial commitment feels too risky or you want to take action personally, individual members can participate by donating to and volunteering with local environmental nonprofits. As they put it: \u201ceveryone has a 1%.\u201d\r\n\r\nTo get started with CSR, start local and start small. As an entrepreneur or small business, contribute expertise to events that are consistent with your mission, vision and values. Symantec\u2019s Head of global diversity, equity and inclusion recommends involving employees and consumers in the process of deciding what causes and organizations to support, noting that these efforts can increase brand preference and employee engagement and the transparency and value of CSR initiatives.[footnote]\"<a href=\"https:\/\/www.symantec.com\/content\/dam\/symantec\/docs\/reports\/2018-corporate-responsibility-report-en.pdf\" target=\"_blank\" rel=\"noopener\">Symantec 2018 Corporate Social Responsibility Report.<\/a>\" Symantec. 2018. Accessed July 19, 2019.[\/footnote]\r\n<div class=\"textbox tryit\">\r\n<h3>PRactice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/1c1413be-b6f0-4407-b804-8565a0fc4eb2\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Summarize the business relevance of corporate social responsibility<\/li>\n<\/ul>\n<\/div>\n<p>As <em>Business News Daily<\/em> writer Skye Schooley notes \u201cConsumers, employees and stakeholders are beginning to prioritize CSR when choosing a brand or company. They are holding corporations accountable for [affecting] social change with their business beliefs, practices and profits.\u201d<a class=\"footnote\" title=\"Schooley, Skye. &quot;What is Corporate Social Responsibility?&quot; Business News Daily. April 22, 2019. Accessed July 18, 2019.\" id=\"return-footnote-51-1\" href=\"#footnote-51-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a> The results from public relations and marketing agency Cone Communications 2017 CSR survey illustrate how critical it is for businesses to get this right.<a class=\"footnote\" title=\"&quot;2017 Cone Communications CSR Study.&quot; Cone. 2017. Accessed July 19, 2019.\" id=\"return-footnote-51-2\" href=\"#footnote-51-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a> Key findings:<\/p>\n<ul>\n<li style=\"font-weight: 400;\">63% of Americans are hopeful businesses will take the lead to drive social and environmental change moving forward, in the absence of government regulation.<\/li>\n<li style=\"font-weight: 400;\">78% want companies to address important social justice issues.<\/li>\n<li style=\"font-weight: 400;\">87% will purchase a product because a company advocated for an issue they cared about.<\/li>\n<li style=\"font-weight: 400;\">76% will refuse to purchase a company\u2019s products or services upon learning it supported an issue contrary to their beliefs.<\/li>\n<\/ul>\n<p>As PR agency InkHouse CEO Beth Monaghan advises in an article for Forbes, \u201cBrands must stand for something because consumers demand it, but they must also live it.\u201d\u00a0<a class=\"footnote\" title=\"Monaghan, Beth, &quot;PR for a Purpose: Bringing Corporate Social Responsibility Back to Basics.&quot; Forbes. February 13, 2018. Accessed July 19, 2019.\" id=\"return-footnote-51-3\" href=\"#footnote-51-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a><\/p>\n<p>For specific examples of CSR in practice, scan the profiles on <em>Fortune<\/em> magazine\u2019s<a href=\"http:\/\/bit.ly\/ctwlist\" target=\"_blank\" rel=\"noopener\"> 2018 Change the World list<\/a>, recognizing companies that have made making a positive social impact a core part of their business strategy.<a class=\"footnote\" title=\"&quot;Change the World.&quot; Fortune. Accessed July 19, 2019.\" id=\"return-footnote-51-4\" href=\"#footnote-51-4\" aria-label=\"Footnote 4\"><sup class=\"footnote\">[4]<\/sup><\/a> <em>Fortune\u2019s<\/em> evaluation and ranking criteria also provide perspective reflect CSR best practices:<\/p>\n<ol>\n<li>Measurable social impact: We consider the reach, nature, and durability of the company&#8217;s impact on one or more specific societal problems.<\/li>\n<li>Business results: We consider the benefit the socially impactful work brings to the company. Profitability and contribution to shareholder value outweigh benefits to the company&#8217;s reputation.<\/li>\n<li>Degree of innovation: We consider how innovative the company&#8217;s effort is relative to that of others in its industry and whether other companies have followed its example.<\/li>\n<li>Corporate Integration: We consider how integral the initiative is to a company&#8217;s overall strategy, and how well that strategy is communicated through the ranks and elsewhere.<\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-345\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/06\/19195452\/4709903391_c0883952f4_b-250x300.jpg\" alt=\"A illustration of planet earth in dark and light blue with a large 1% in white. The graphic reads &quot;1% for the planet&quot;.\" width=\"350\" height=\"421\" \/>Although the majority of Change the World honorees have $1 billion in annual sales, CSR can be integrated into businesses at any scale. <a href=\"https:\/\/www.onepercentfortheplanet.org\/\" target=\"_blank\" rel=\"noopener\">1% for the Planet<\/a> is a global movement that started by two businessmen who shared a love for the outdoors and committed to contributing 1% of their sales to the environment\u2014regardless of profitability.<a class=\"footnote\" title=\"&quot;1% for the Planet.&quot; 1% for the Planet. Accessed July 19, 2019.\" id=\"return-footnote-51-5\" href=\"#footnote-51-5\" aria-label=\"Footnote 5\"><sup class=\"footnote\">[5]<\/sup><\/a> To quote Patagonia founder and 1% for the Planet co-founder Yvon Chouinard, \u201cThe intent of 1% for the Planet is to help fund these diverse environmental organizations so that collectively they can be a more powerful source in solving the world\u2019s problems.\u201d<a class=\"footnote\" title=\"Ibid.\" id=\"return-footnote-51-6\" href=\"#footnote-51-6\" aria-label=\"Footnote 6\"><sup class=\"footnote\">[6]<\/sup><\/a> If making an ongoing financial commitment feels too risky or you want to take action personally, individual members can participate by donating to and volunteering with local environmental nonprofits. As they put it: \u201ceveryone has a 1%.\u201d<\/p>\n<p>To get started with CSR, start local and start small. As an entrepreneur or small business, contribute expertise to events that are consistent with your mission, vision and values. Symantec\u2019s Head of global diversity, equity and inclusion recommends involving employees and consumers in the process of deciding what causes and organizations to support, noting that these efforts can increase brand preference and employee engagement and the transparency and value of CSR initiatives.<a class=\"footnote\" title=\"&quot;Symantec 2018 Corporate Social Responsibility Report.&quot; Symantec. 2018. Accessed July 19, 2019.\" id=\"return-footnote-51-7\" href=\"#footnote-51-7\" aria-label=\"Footnote 7\"><sup class=\"footnote\">[7]<\/sup><\/a><\/p>\n<div class=\"textbox tryit\">\n<h3>PRactice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_1c1413be-b6f0-4407-b804-8565a0fc4eb2\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/1c1413be-b6f0-4407-b804-8565a0fc4eb2?iframe_resize_id=assessment_practice_id_1c1413be-b6f0-4407-b804-8565a0fc4eb2\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-51\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Business and CSR. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>1% For the Planet Sticker. <strong>Authored by<\/strong>: Ross Tossberg. <strong>Provided by<\/strong>: Flickr. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/20209466@N06\/4709903391\">https:\/\/www.flickr.com\/photos\/20209466@N06\/4709903391<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-51-1\">Schooley, Skye. \"<a href=\"https:\/\/www.businessnewsdaily.com\/4679-corporate-social-responsibility.html\" target=\"_blank\" rel=\"noopener\">What is Corporate Social Responsibility?<\/a>\" <em>Business News Daily<\/em>. April 22, 2019. Accessed July 18, 2019. <a href=\"#return-footnote-51-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-51-2\">\"<a href=\"http:\/\/www.conecomm.com\/research-blog\/2017-csr-study\" target=\"_blank\" rel=\"noopener\">2017 Cone Communications CSR Study.<\/a>\" Cone. 2017. Accessed July 19, 2019. <a href=\"#return-footnote-51-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-51-3\">Monaghan, Beth, \"<a href=\"https:\/\/www.forbes.com\/sites\/forbesagencycouncil\/2018\/02\/13\/pr-for-a-purpose-bringing-corporate-social-responsibility-back-to-basics\/#3890df6454e9\" target=\"_blank\" rel=\"noopener\">PR for a Purpose: Bringing Corporate Social Responsibility Back to Basics<\/a>.\" Forbes. February 13, 2018. Accessed July 19, 2019. <a href=\"#return-footnote-51-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><li id=\"footnote-51-4\">\"<a href=\"https:\/\/fortune.com\/change-the-world\/\" target=\"_blank\" rel=\"noopener\">Change the World<\/a>.\" <em>Fortune<\/em>. Accessed July 19, 2019. <a href=\"#return-footnote-51-4\" class=\"return-footnote\" aria-label=\"Return to footnote 4\">&crarr;<\/a><\/li><li id=\"footnote-51-5\">\"<a href=\"https:\/\/www.onepercentfortheplanet.org\/\" target=\"_blank\" rel=\"noopener\">1% for the Planet.<\/a>\" 1% for the Planet. Accessed July 19, 2019. <a href=\"#return-footnote-51-5\" class=\"return-footnote\" aria-label=\"Return to footnote 5\">&crarr;<\/a><\/li><li id=\"footnote-51-6\">Ibid. <a href=\"#return-footnote-51-6\" class=\"return-footnote\" aria-label=\"Return to footnote 6\">&crarr;<\/a><\/li><li id=\"footnote-51-7\">\"<a href=\"https:\/\/www.symantec.com\/content\/dam\/symantec\/docs\/reports\/2018-corporate-responsibility-report-en.pdf\" target=\"_blank\" rel=\"noopener\">Symantec 2018 Corporate Social Responsibility Report.<\/a>\" Symantec. 2018. Accessed July 19, 2019. <a href=\"#return-footnote-51-7\" class=\"return-footnote\" aria-label=\"Return to footnote 7\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":11,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Business and CSR\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"1% For the Planet Sticker\",\"author\":\"Ross Tossberg\",\"organization\":\"Flickr\",\"url\":\"https:\/\/www.flickr.com\/photos\/20209466@N06\/4709903391\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"80116a99-7419-4d71-a709-e6e9cf26bf08, 629c191b-78d5-4932-9035-4a647d083072","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-51","chapter","type-chapter","status-publish","hentry"],"part":21,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/51","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":17,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/51\/revisions"}],"predecessor-version":[{"id":3419,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/51\/revisions\/3419"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/parts\/21"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/51\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/media?parent=51"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapter-type?post=51"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/contributor?post=51"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/license?post=51"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}