21 Must-Know Corporate Social Responsibility Terms
Welcome to our guide on the top 21 must-know corporate social responsibility terms. Whether you are an employee, a business owner or just someone interested in sustainability and ethical practices, understanding these terms is essential for making informed decisions about companies and their impact on society.
Corporate Social Responsibility (CSR)
Corporate Social Responsibility, or CSR for short, is a business concept that refers to a company’s responsibility towards society and the environment. It encompasses not only ethical behavior but also sustainable practices and philanthropy.
Sustainability is the ability to maintain balance in economic, social, and environmental systems over time. In the context of CSR, it means conducting business in a way that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Triple Bottom Line (TBL)
The Triple Bottom Line is a framework used to evaluate a company’s performance based on three bottom lines: financial, social, and environmental. Considering all three aspects is crucial for companies to be truly sustainable and responsible.
Stakeholders are individuals or groups that have an interest in a company’s activities, including shareholders, employees, customers, suppliers, and the community. CSR involves engaging with stakeholders and addressing their concerns.
Corporate citizenship refers to the responsibility of businesses to contribute positively to society through ethical behavior, sustainability, and philanthropy. It goes beyond legal compliance and includes actively contributing to the well-being of communities.
Ethical sourcing is the process of ensuring that products or services are obtained from suppliers who adhere to ethical standards in their operations. This includes fair labor practices, human rights, and environmental sustainability.
Transparency refers to a company’s openness and honesty in its operations, including sharing information about its social and environmental impact. It allows stakeholders to hold companies accountable and builds trust with consumers.
Impact investing is the practice of making investments in companies or organizations that have a positive social or environmental impact alongside financial returns. It combines traditional investing with CSR principles.
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. It includes ethical guidelines, accountability measures, and decision-making processes that affect stakeholders.
Corporate ethics are moral principles and values that guide a company’s behavior. This includes honesty, integrity, respect for employees and customers, and fair treatment of all stakeholders.
Environmental, Social, and Governance (ESG)
Environmental, social, and governance (ESG) refers to a set of criteria used to evaluate a company’s sustainability and societal impact. It is often used by investors as a framework for assessing corporate responsibility.
Corporate philanthropy involves the donation of money or resources by businesses to support charitable causes or organizations. It can also include employee volunteer programs and in-kind donations.
Corporate volunteering is when companies encourage or facilitate their employees to engage in volunteer work for social or environmental causes. It not only benefits the community but also boosts employee morale and engagement.
Fair trade is a movement that promotes fair wages, safe working conditions, and sustainable practices for producers in developing countries. By supporting fair trade products, companies can contribute to ethical sourcing and sustainability.
Social License to Operate
Social license to operate is the acceptance or approval of a company’s operations by the community where it operates. It involves building relationships with stakeholders through meaningful engagement and responsible practices.
Impact assessment is the process of measuring and evaluating a company’s social, environmental, and economic impact. It helps companies understand their current performance and identify areas for improvement.
Supply Chain Management
Supply chain management is the management of all activities involved in sourcing, producing, and delivering products or services to customers. It includes managing relationships with suppliers to ensure ethical practices throughout the supply chain.
Human rights are the fundamental rights and freedoms that all individuals are entitled to, regardless of their gender, race, nationality, religion, or any other status. Companies have a responsibility to respect human rights in their operations and supply chain.
Diversity and Inclusion
Diversity and inclusion refer to creating a workplace culture where people from different backgrounds feel valued and included. It involves recognizing and respecting individual differences and promoting equality.
Corporate accountability refers to a company’s responsibility for its actions, including its impact on society and the environment. This includes taking ownership of mistakes and making efforts to rectify them.
Sustainable Development Goals (SDGs)
The Sustainable Development Goals, also known as the Global Goals, are a set of 17 goals adopted by the United Nations in 2015 to end poverty, protect the planet, and ensure peace and prosperity for all. They provide a framework for companies to align their CSR efforts with global sustainability targets.
Corporate Social Responsibility (CSR) is a concept that has gained widespread attention in recent years. It refers to the ethical behavior of businesses towards society and the environment. Companies are increasingly being held accountable for their impact on these factors, and CSR has become an essential aspect of modern business operations.