In order to answer the question: What are the four different types of CSR?, we must first examine what legal responsibility is. The definition of legal responsibility is relatively simple. It involves an organization’s obligation to uphold the rules of a society in which they operate. As long as it complies with these rules, it is a responsible organization. The proponents of CSR argue that this responsibility is a proactive duty.
The concept of social responsibility (CSR) is not new. In fact, it has existed since the nineteenth century, when writers like Chinua Achebe and Betty Friedan critiqued the industrialization of the Western world. The emergence of stakeholder communities demanded greater engagement with economic practices. Though they did not own stock in a company, they had a right to vote and participate in decision-making processes.
One example of a company using CSR to create a positive impact on society is philanthropy. Philanthropy involves a corporation donating its earnings to causes in its community. This often takes the form of a foundation or trust. It can enhance a corporation’s public image and engage employees. Giving schemes may even offer matching opportunities. These types of CSR initiatives are designed to make a company a better employer and more valuable to society.
By addressing social issues, a company can gain more loyal customers. According to Better Business Journey, 87% of people will buy a product or service from a company that cares about society. And a high CSR score also enhances the overall market value of a company. The four types of CSR are described below. There are many other types of CSR activities that a company can engage in.
Corporate social responsibility includes actions that a company takes that benefit the community. This may include donating to nonprofit organizations, implementing environmentally-friendly workplace policies, and more. Several companies have embraced CSR because it can build better relationships with customers. Besides adding value to society, it can also help a company compete for a place in the market. Therefore, a company should be diligent about maintaining responsible policies to gain credibility and respect.
Legal responsibility is a company’s responsibility to follow laws and regulations that affect its operations. These laws affect a company’s profits and may even result in the loss of jobs. However, if a company fails to do its legal responsibility, it will suffer from its other responsibilities, including social responsibility. Thus, business legal responsibility is the cornerstone of social responsibility. The fourth type of CSR involves philanthropy.