Taking Sustainability Further
A company is a direct part of the society in which it conducts its activities. Creation of profit should go hand in hand with responsibility towards the society. Currently, the term corporate social responsibility (CSR) is used widely, which denotes the method of doing business in a way that focuses not just on the economic but also the social and environmental part of the activities.
Legal requirements
The company accepts obligations that go above the legislative framework. Responsible companies do things that are not directly dictated by law. A detailed strategy of corporate responsibility brings results, which include:
- Increased brand value
- Differentiation from competition – competitive advantage
- Improved relationships with others
- Strengthened corporate culture
- Acquisition of higher quality employees
- Improved risk forecast
- Attracting investors
- Opportunity for innovation
Social responsibility, built into the corporate strategy, can have a positive impact even on small and medium enterprises and thus does not exclusively apply to large corporations. In the last few years there have been situations when the public expects corporate social responsibility and governmental and non-governmental organisations, or media, try to act in a way that makes the companies realise their responsibility and make steps or take measures toward upholding such responsibility. After entering the European Union, the Ministry of Labour and Social Affairs joined the concept of Corporate Social Responsibility under the General Directorate for Employment, Social Affairs and Equal Opportunities of the European Commission.
- More detailed information on corporate social responsibility (in Czech language only)
- Ministry of Labour and Social Affairs
In order for a company to best use the benefits of corporate responsibility, the attitude toward responsibility must be true and trustworthy. Therefore, it should be transparent, thorough, impressionable and real – the public needs to trust that the company is convinced of its correctness.The results and incidence of corporate social responsibility can be divided into three areas: Economic, social, and environmental.
- Economic pillar (in Czech language only)
In the economic area, a socially responsible company is expected to conduct business in a transparent manner and maintain good relations with customers, investors, and business partners. The impact of its business on local economy is also monitored, as well as the impact on national and global economy, for instance through development of employment, fight against corruption or educational campaigns. Among the specific tools in this area are the code of ethics, provision of truthful information, customer care, usage and thorough observation of legal and professional standards, timely payment of mature liabilities, observing the code of advertising ethics, etc.
- Social pillar (in Czech language only)
The social area covers above all, care for employees, their involvement in decision-making, provision of feedback, employee education, flexible work form, financial and non-financial evaluation of employees, fair work conditions, non-discrimination, equal opportunities, support of family life, etc. We can also include here corporate donorship and volunteer work, fair trade, and similar activities.
- Environmental pillar (in Czech language only)
The environmental area has currently been the most discussed one. In this area a company focuses on savings of energy, water and other raw materials, sorting of trash, environmentally friendly materials and products, or, for instance, reduction in using fuel. Although some costs expended in relation to environmental policy of a company can first affect short-term profitability of a company, significant savings should occur in the long run as a result of applying some measures (especially those related to the energy demands of operation).
Personalised help and advice
Association of International and Czech Corporations and Companies. The association pursues observation of ethics in entrepreneurial practice, true fulfilment of corporate social responsibility and supports cooperation between the corporate, public and non-profit sectors.
- CSR Online (in Czech language only)
- Business Leaders Forum (in Czech language only)
The Enterprise Europe Network is an extensive network (with 600 host organisations and 4 000 full-time staff) providing information and advice to entrepreneurs through its local partners.
Key documents
- Guide to Corporate Social Responsibility (in Czech language only)
Document created in co-operation between Your Europe - Business (EU portal for companies) and BusinessInfo.cz.
