{"id":8473,"date":"2016-11-11T19:27:30","date_gmt":"2016-11-11T19:27:30","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&p=8473"},"modified":"2019-01-05T01:41:32","modified_gmt":"2019-01-05T01:41:32","slug":"reading-corporate-social-responsibility-3","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wmintrobusiness\/chapter\/reading-corporate-social-responsibility-3\/","title":{"raw":"Reading: Corporate Social Responsibility","rendered":"Reading: Corporate Social Responsibility"},"content":{"raw":"\"Photo<\/a>\r\n

History of Corporate Social Responsibility<\/h2>\r\nAmerican President Calvin Coolidge said in the 1920s that \u201cthe chief business of the American people is business.\u201d It was a popular observation in a time of economic prosperity, when issues such as energy security and climate change were practically nonexistent.\r\n\r\nAlmost a century later, things are very different. Now, more than ever, private enterprise is being called upon to exercise social responsibility, especially when it comes to the environment. This trend reflects the\u00a0view\u00a0that companies ought to do more than simply meet the letter of the law and the bare minimum of ethical business behavior. Today\u00a0we discuss the idea of \"corporate social responsibility.\"\r\n\r\nPresident Coolidge, like many American presidents before and since, kept government out of the affairs of business as much as possible. But starting in the 1960s and 1970s, the environmental impact of an ever-expanding economy was generating more and more protest from citizens. The result was a wave of legislation designed to reduce the pollution produced by business activity. Those laws had positive effects and are now vital parts of the American regulatory framework. But despite these regulations, controlling pollution continues to be a challenge. And now there are even larger problems on the horizon.\r\n\r\nEven though businesses today are more efficient and use fewer resources to make goods\u2014thanks to technological advances\u2014 many ecosystems continue to suffer. This is because the scale of economic activity grows every year, despite environmental improvements by individual enterprises.\r\n\r\nStarting a few years ago, many citizens in the U.S. and around the world began calls for more action from private enterprise on these social issues\u2014beyond compliance with regulations and traditional charity-related work. The result was a new movement known as corporate social responsibility, or CSR.\r\n

CSR Defined<\/h2>\r\nCorporate social responsibility<\/strong> (CSR) can be\u00a0simply and broadly defined as the ethical role of the corporation in society.\u00a0The aim of CSR is to increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions.\u00a0It isn't enough for companies to generate a profit and merely\u00a0meet the letter of the law in their business operations. Today, many U.S. citizens expect them to generate a profit and<\/em> conduct themselves in an ethical and socially responsible manner.\r\n\r\nCSR strategies encourage the company to make a positive impact on the environment and stakeholders\u2014that is,\u00a0all of the\u00a0parties who have a stake in the performance and output of the corporation. Stakeholders include the company\u2019s employees, unions, investors, suppliers, consumers, local and national governments, and communities that may be affected by corporate activities such as construction, manufacturing, and pollution.\u00a0For some companies, CSR means manufacturing their products in a way that doesn't harm the environment and protects the consumer from potentially hazardous materials.\u00a0One such company that has staked it reputation on ethical manufacturing is LUSH Cosmetics.\u00a0<\/span>\r\n

https:\/\/youtu.be\/yoGMEX1ZLoc<\/p>\r\n\r\n

Demands for Corporate Social Responsibility<\/h2>\r\nSome of the drivers pushing businesses toward CSR include the following:\r\n