|
|  | |
Corporate Social Responsibility, CSR
In the Green paper "Promoting a European Framework
for Corporate Social Responsibility" the CSR is defined as "a concept whereby
companies integrate social and environmental concerns in their operations and in
their interactions with the stakeholders on a voluntary basis". In general, CSR
is about how companies manage the business processes to produce an overall
positive impact on society.
The main function of the
company is to create value through producing goods and services for the society,
thereby generating profit for its owners and shareholders as well as welfare for
society, particularly through an ongoing process of job creation. However, the
sustainable business success and shareholder value cannot be achieved solely
through maximizing short-term profits, but instead through operating the
business in a socially responsible way. The balance between generating sound
profits, caring for the environment, developing employees and contributing to
the societies in which a company operates should be achieved.
There is a growing interest in CSR among companies,
policy-makers and other stakeholders due to the clear business benefits. The
benefits perceived are increasingly obvious to many corporate leaders: a better
alignment of corporate goals with those of society, maintaining the company's
reputation as well as enhancing credibility among stakeholders, securing its
continued license to operate, developing new markets, and reducing risk and its
associated costs - all these contribute to the long-term prosperity of the
company and ultimately its survival. CSR is also a driver for innovation - it
creates an opportunity to develop new
eco-efficient products and production processes. These
companies are faster to adapt, and are generally better managed, and this makes
them more attractive to investors.
More information about CSR can be found at the
Commission of the European Communities,
World Business Council for Sustainable Development,
Akzo Nobel, ABB (under Sustainability) and
Stora Enso websites.
|
|
