What is a CSR approach and who does it concern?

The term “CSR approach” is making the news and becoming increasingly popular in companies. Reflecting a desire to respect the environment and human beings, adopting a CSR approach is also an undeniable asset for fulfilling the new demands of customers, partners, and employees. What is the meaning of a CSR approach, a key factor in corporate sustainable development? What are its principles and pillars? How is this concept put into practice?

Definition: What is the meaning of a CSR approach?

Before explaining what is involved in a CSR approach, let’s define it.

“CSR” stands for Corporate Social Responsibility. It is a set of good practices that are implemented in a company and respects the principles of sustainable development. In other words, a company that wants to adopt a CSR approach must commit to measures that preserve the environment and have a positive impact on society, while remaining economically viable.

The meaning of a CSR approach according to the European Union

In the Green Paper published by the European Union in 2001[1] (which was designed to provide a reference framework for companies that want to commit to sustainable development), CSR is defined as the voluntary integration of social and environmental issues into business activities and stakeholder relations. This document specifies that being socially responsible is not limited to meeting the applicable legal obligations but requires going beyond them.

CSR and the ISO 26000 standard

The International Organisation for Standardisation (ISO) also addresses the definition of CSR in its ISO 26000 standards[2]. In these texts, corporate social responsibility translates into ethical and transparent behaviour that contributes to sustainability. Its objectives are as follows:

• Employee health and well-being;
• The expectations of stakeholders;
• Compliance with the applicable laws and international standards of behaviour;
• Integration of these practices into the company, including its relations with its partners.

There is an increasing number of CSR labels and certifications for fulfilling social and ethical criteria in the workplace. The ISO 26000 standard wasn’t created to certify businesses, but it does help them to clarify the notion of social responsibility and to put the principles into practice through 7 guiding principles.

What are the 7 principles of CSR?

Derived from the ISO 26000 standards, CSR is defined based on 7 major principles that guide companies towards more socially responsible and environmentally friendly behaviour. These 7 guidelines are:

1. Organisational governance;
2. Human rights;
3. Labour relations and working conditions;
4. Environmental concerns;
5. Ethical behaviour;
6. Consumer issues;
7. Communities and local development.

Organisational governance deals with the management system and relations with the various stakeholders. The CSR manager plays a key role in this.

Human rights are based on the Universal Declaration of Human Rights. Its areas of action range from non-discrimination to respect for fundamental principles and the labour law.

People are central to a company’s performance. A healthy and safe working environment is a logical means to this end, as is the development of human capital, mainly through provision of continuous training.

The environment is an important part of CSR principles: Development of sustainable resources, preservation of biodiversity, prevention of pollution, etc.

For a company, adopting ethical behaviour means, for example, being transparent about its actions or combatting corruption.

Consumers’ rights apply to several areas such as the protection of their data and privacy, awareness of sustainable consumption, fair business practices, etc.

The seventh and final principle of CSR is about communities and local development. It considers the needs of society and helps position the company as socially responsible. The actions do not necessarily have to be related to the company’s activity. In fact, this strategy can be reflected by:

• Voluntary participation in events;
• Financial support to charities by purchasing equipment;
• Preference given to local suppliers, etc.

What are the 3 pillars of CSR?

To implement these 7 principles, CSR is based on 3 main pillars: society, the environment, and the economy. Also called “triple bottom line” (TBL), this principle is based on the idea that businesses should focus on respecting human rights and fighting climate change as much as they do on making profits.

1 – Social and societal responsibility

The social and societal pillar is based on respect for human rights and must fulfill essential social needs. As well as ensuring that people are not discriminated against, it supports diversity. This category also includes everything related to healthcare and health and safety at work, as well as developing employees’ individual skills in their jobs.

2 – Environmental responsibility

The environmental pillar covers issues related to preserving biodiversity, reducing pollution, using renewable energy, recycling, etc.

A company’s impacts on the environment are significant (transport links, waste, use of natural resources, etc.). Lots of actions can be taken to reduce the carbon footprint of companies. They can, for example, implement a circular economy approach, a responsible procurement policy, optimise their waste management and their supply chain, etc.

3 – Economic responsibility

A company can only exist if it is economically viable. Its CSR approach and commitments must therefore combine societal, environmental, and economic responsibility.

The objective of this last pillar is not only to generate profits but to keep the business going without failing the other two areas. This is achieved through creating shared value:

• Supporting local suppliers and producers;
• Setting fair prices;
• Effective risk management;
• Transparency;
• Developing a good relationship with the company’s customers…

What is the purpose of the CSR approach and how is it applied in business?

CSR results from a desire to improve the way that companies take environmental and social stakes into account in their business activity.

The general public increasingly holds companies accountable based on their actions toward sustainable development. Employees, investors, suppliers, and consumers all pay a lot of attention to the commitments and strategies deployed by a company to help preserve the environment and develop working conditions that respect human rights. CSR accounts help companies to measure their actions and to report them to their stakeholders.

There are many areas where CSR initiatives can be applied within a company. For example:

• Increasing social inclusion;
• Choosing responsible partners and employees;
• Eco-design;
• Choosing products that are healthy for both employees and the environment;
• Ethical and value-based management;
• Preference for short supply chains;
• Better supply chain management, etc.

The current global situation and the resulting awareness are accelerating this willingness to move toward sustainable development. CSR and CSR management is now an integral part of the business world. Although it’s not mandatory by law, it’s a sign of real commitment and stakeholders across the board very much expect a company to have a CSR policy.

[1] https://ec.europa.eu/commission/presscorner/detail/en/DOC_01_9

[2] https://iso26000.info/iso-26000-an-introduction/