Corporate social responsibility (CSR) is more than a buzzword. CSR has been a part of the business world for two centuries. It's crucial to grow a business, and it's something every organisation should think about. 

A quick CSR history 

CSR had existed for decades before it received a name. Business owners in the 1800s realised that employees were chronically overworked and underpaid, especially since there were no such things as weekends or overtime. There was little effort going into upskilling employees or investing in their communities, nor any real protection for workers, leading to poor education, child labour, mass alcoholism and domestic abuse, and extreme poverty.  

These issues are ultimately bad for business. Social and economic strife means fewer people can afford a company's products or services, and poorly educated and supported employees cause a regular and expensive churn of job leavers and workplace injuries. 

Some bosses didn't care about these things (think of Ebenezer Scrooge, the main character in Charles Dickens' A Christmas Carol). Others were fortunately more enlightened and started pouring money into education, social improvement, and employee benefits. This was the start of CSR. 

The practice would continue to grow. The term "social corporate responsibility" was coined in the mid-1950s. The 1970s developed a social contract between business and society: companies exist because of public consent and have a responsibility to serve society's needs. The 1990s delivered the first true CSR business strategies, particularly Archie B. Carroll's Pyramid of Corporate Social Responsibility. 

CSR in the 21st century 

CSR is significant today for several reasons, which we can align with a CSR pyramid: economic responsibilities, legal responsibilities, ethical responsibilities, and philanthropic responsibilities. 

Economic responsibilities: Poor social awareness can deter customers, thus reducing profits. It diminishes sustainability and efficiency, resulting in more costly waste, and can make the business unattractive to current and future employees. 

Legal responsibilities: Companies risk fines, legal costs, and reputational damage when they ignore responsibilities such as employee safety, environmental protection, or product safety. 

Ethical responsibilities: Unethical business behaviours have consequences. In the near term, poor ethics hurt their standing with customers and investors, and in the long term, a lack of ethics can lead to conflict with communities, unions, and legislators. 

Philanthropic responsibilities: A sustainable and healthy business invests in its people and their communities, from supporting job creation and upskilling to offering bursaries, backing community projects, and supporting local schools and teams. 

Can your small business have CSR? 

Large and listed companies have the resources to tackle large CSR projects and often link their branding to CSR, especially when they are publically listed businesses. However, any business can invest in CSR and give back to the communities that support them. Ultimately, CSR starts by creating a corporate social responsibility culture, so start with the small things: 

• Look at your supply chain: Are you buying goods from ethical and legitimate suppliers? If those suppliers abuse their staff or undermine the environment, is it the type of business you want to associate with? 

• Support community campaigns: Consider local community campaigns, and see how you can support them, such as trash collection efforts or sponsoring local school teams. You can even recoup some of the costs through tax claims. 

• Provide paid volunteer time: You may have employees who give back through charitable actions. Help them by offering paid time specifically for volunteer projects and events, and consider supporting those projects through sponsorships or donations. 

• Invest in office recycling: Work with non-profit recycling organisations to collect your business waste and create ways for your employees to participate through recycling points.  

• Support local charity drives: enable your employees to participate in or start charitable drives at the office, such as collecting food or clothes for people in need. 

Most grass-roots CSR initiatives start with employees eager to make a change. Give them the channels and space to pursue these goals, and align your brand with their efforts. Engage with the communities where you operate—school teams or non-profit groups can often use a little help. 

As your CSR projects grow, you'll see more opportunities to help make the world a better place while boosting your productivity and profits.