Explaining Corporate Social Responsibility in a Simplified Way


Okay, so I am going to try to explain corporate social responsibility in a nutshell with little use of anything too technical of words. This will not be easy but I will do my best to get the message across. So CSR or corporate social responsibility is a new approach of many companies to not only make a profit but also help the community and environment. This is a response to all of the years of concentrating on profit, and finally gives back to the community. Of course this is not just a move to help people nor is it just marketing move… there is a good reason for companies to do this.

Explaining corporate social responsibility without letting you understand a few terms, so I will first explain one or two to you. First is “Sustainability theory” the thought of using the company to use raw materials that would uplift the community that produces it, and produce products that help and fulfill the needs of the community. And “Stakeholder Theory”, which aims to please all the stakeholders of the company, and that includes everyone, form the managers, to the workers, customers, and even the community. This is an interesting and we will be expanding on that later in a more layman approach. These two will suffice for now to just give you the essence of what corporate social responsibility is.

Now, money has always been the main goal of businesses, or to be more precise “Profit” is the main pursuit of business for centuries, maybe even thousands of years. But recently some companies have shifted their sights to their social responsibility, they found that sustainability is essential for their continued existence, if they continue to pursue just profit without looking at those around them they will sooner or later run out of people to sell to (oversimplification), it dawned to them that it maybe be necessary that they should make sure that the communities and fellow companies around them continue to exist, because if no one except them have jobs and money, who will buy their own product.


Companies have also discovered that taking care of their stakeholders is essential to lead to good profit. Remember those direct T.V. commercials that show silly domino effects? Well, I will be using that to explain this theory: If you are the owner or is in the board of a fairly large company and only think of profit for the company you will try to cut cost, when you cut cost you make employees less happy, when they are less happy they are less productive, when they are less productive, their managers get frustrated, when the managers are frustrated overall morale of the company goes down, when this happens the quality of goods the company produce will go down, when the quality goes down customers move to other brands, when they move to other brands profit goes down, when profit goes down you lay people off, when that happens the community will be unsatisfied with your company, and when that  happens your company as a whole will slowly collapse.

Again, the explanation I gave was very simplified. But it should have allowed you to understand why companies are opting to doing CSR, it is now the best and only way to truly succeed as a business.

OPINION: Silly Skepticism of Corporate Social Responsibility

corporate-social-responsibilty-earthA company fabricating a facade to create an image of good will is what critics would define corporate social responsibility. They argue that such a thing is not truly a move to create a better more sustainable relationship between a company and the community, but merely theater to trick people to once again believe in the corporations that once screwed them over, and left them homeless and hungry. But with all their facts and number crunching, they fail to realize that a corporation is not truly soulless, for in it is the souls of their managers, workers and executives. Who, though media and movies would make you think otherwise, are in fact humans with a conscience!

Many would argue that history would be evidence enough that no businessman care for the wellbeing of someone other than himself, but being blind by a single view is more harmful than what many businessmen have done, history can also show you that.
Now, I am not saying that corporate executives and businessmen are sacrosanct, far from it! They are leaders of industries that must govern their force for the betterment of humanity, and if done so correctly are deserving of the treasures that they reap. Had we not need or want any of their wears they would have never rise into power, it is obvious enough they need us as much as we need them. Many of the heirs of the empires we call companies, have forgotten his duty to the people, and their erroneous mantra of

“the pursuit of profit is the purpose of a company”

lead them to ruin which affected us all. Those who were able to keep their empires from completely collapsing saw this and decided to go back to what started all great companies

“Providing what the people need and demand”

and along with it the pursuit of building a better community by being part of it.
Influential men, women, and even entire nations have gone astray at least once in one point in history! Companies and corporations are obviously enough not exempted from this! What we must look at is their efforts to change, Corporate Social Responsibility is not merely a marketing campaign to give the illusion of change, and it is their way of paying for their past sins and the pursuit of a better world, no longer making profit their main goal but as a byproduct of helping the community.

Is it perfect? It the effects even immediately felt? No, and not always. Change is gradual and should always take time to truly be implemented and felt, for if it is not then it is not genuine and truly is just a façade! We give chances to people and political leaders who don’t even seem to have a plan to compensate for their past mistakes, why on earth would we not allow companies a chance to show their chance! They have at least made the effort to study and create new approaches.