CSR, Charity and Sustainability

Recently I was having a conversation with someone about what I do. I was trying to explain what CSR is and that person turned around and said to me, "Oh! you're doing social service." So yes, it was a head-bangs-wall moment but this misconception can be easily forgiven. Many people's definition of CSR, does not go beyond charitable activities or 'social service'.

I find it to be especially true in the Eastern business cultures where businesses traditionally do involve aspects of charity into their operations. There is nothing wrong with a charity or philanthropy-centric CSR model, but restricting it only to these avenues diminishes the true potential of CSR.

Philanthropy, is the precursor to CSR. The evolved model of CSR is not something that is static, it is constantly shifting its expectations from a business. Businesses were always conscious of their interaction with people: either through employing them or benefiting the community in which they operate. Never in the history of business did it have to deal with the kind of environmental constraints that we now face. This is where the true potential of CSR lies.

The corporate responsibility movement is backed by UN initiatives such as the Global Compact and the Millennium Goals which have defined the goal and principles for responsible corporate behaviour in the following areas:

- Human Rights
- Labour Standards
- Environment
- Health
- Anti-Corruption
- Economic responsibility

All of these together form the basis if CSR, however the environmental aspect is the key that sets CSR apart from philanthropy and charity. Incorporating low carbon initiatives, waste management principles etc into business not just as cost-cutting methods but as a core component of business are the ways to give sustainability a boost.  The role that CSR plays in promoting sustainability is not something that can be taken lightly. There needs to be a focus on long term economic and social stakeholder expectations by boosting sustainability performance through networks of governments and NGOs. This boost to the profile of sustainability is not something that can be achieved through a charity-centric CSR portfolio.

Businesses without concern for sustainability issues and without a balanced CSR ideal will find it very hard to compete in the coming years. CSR is becoming a market standard and is no longer just a gimmick. CSR is also not social service...