5 Examples of Impactful CSR and What We can Learn from Them

Abraham Lincoln’s famous quote goes, “You cannot escape the responsibility of tomorrow by evading it today.” Believe it or not this is the cornerstone of impactful Corporate Social Responsibility or CSR. In the Disney cartoon Wall-E, humans are no more on Earth and the robot finds himself on a planet surrounded by garbage. He is excited and happy when he finally finds a living being, a tiny seedling. The robot certainly does not evade his responsibilities.

He shares the plant with Eve, a robot from a spaceship carrying humans to outer space. While some see it as a possibility of life returning to Earth, others observe it with scepticism and see the plant as unhealthy, something that is not good or useful. For CSR to be successful, it is this viewpoint that needs to change, and the spirit of inclusion must come in.

With continued urbanisation, there is a stress on the shared resources around us, and while it has led to economic and social well-being for some, it has not for others. This is what a CSR program hopes to change. CSR challenges the way companies think.

A CSR program is all about companies going above the status quo, going to an ignored environment, condition or communities of people, embracing them and talking about a future that includes them and taking steps to make that future happen. It is about questioning conventions and overcoming scepticism.

What is CSR?

Now let us look at the formal definition of CSR. A business model that helps a company be socially acceptable to itself and the stakeholders and public is referred to as CSR. CSR can be of four types: Environmental, ethical, philanthropic, and economic.

Where the focus of environmental initiatives is the preservation of natural resources, that of philanthropy is the contribution to the human cause. Ethical initiatives are centred around fair treatment, honesty and transparency. The last of the four, economic initiatives are focused on improving the socio-economic status of communities.

What are the Benefits of CSR to Organizations?

While CSR activities are carried out for the benefit of the world around them and to satisfy compliance and moral requirements, it can benefit organizations in several ways. Some of the benefits of CSR to an organization are:

• Boosts business reputation. Those sustainability reports you compile annually help ensure that people appreciate the transparency, honesty and integrity with which you operate.
• Improves brand visibility and recognition. Your brand becomes popular and the subject of conversations.
• Increased sales, customer loyalty and retention. People are proud of being associated with your brand, stay loyal to it and become regular customers.
• Greater efficiency in operations. CSR guarantees greater cost savings in operations when executed correctly. An instance of this is eliminating the use of paper, which can not only reduce the confusion and mismanagement that can happen in such processes but is also good for the environment.
• Business growth. Thanks to such improved efficiency in operations and other factors mentioned above, the business grows year on year.
• Access to capital. Investors are just as worried about sustainability and ethical sourcing as governments are. If your company is aligned with sustainability goals, it can ensure access to capital.

Examples of CSR in the Corporate World

Impactful CSR is not something that has eluded companies. In fact, there are a few companies who consistently come up with great CSR initiatives and celebrate the achievements of communities and people they work with. While this helps build the brand, it also creates awareness of social, economic and political issues affecting the world today. Here is a look at five examples of impactful CSR.

1. CSR is about two players working together with the right synergy, even if they are not big. Aricent and NASSCOM together have trained over 8000 marginalized engineering students in a bid to inspire and train the next generation of engineers from India, with a focus on marginalized communities. The name of the program is very apt, Arise with Aricent. In fact, ARISE itself is an acronym.

Another example is that of the watch and lens frame maker Titan, in cooperation with the NGO Biota Soil Foundation, that took a pledge to plant 1 lakh trees in October 2022. Tata Motors and Tata Power also collaborated and supported the initiative.

2. CSR is about learning what is possible! ICICI Foundation is working wonders here! It has promoted the Alternate Dry and Wet Method of paddy cultivation in Mayiladuthurai District, Tamil Nadu. This saves water by not flooding the grounds with water but instead using water intermittently. Water usage reduces by 30% without any loss or damage to the crop.

So far, ICICI Foundation has worked with farmers to cultivate nearly 2400 acres of land using advanced irrigation and cultivation techniques. 5 Billion litres of water have been saved by these methods. This is sufficient to make the water last for more than 400 days in a land of the same size (2400 acres) even if the population density is as high as Bangalore. The act of saving so much water is no mean feat!

3. CSR is about giving back to the community that has helped build your company. This is very true in the case of Ferrari. Community engagement and involvement in the areas like Maranello and Modena, that have long supported the company’s manufacturing plants, was a top priority for them.

Local universities and schools and the industry network in the Emilia-Romagna region all contributed to the inauguration of the e.DO Learning Center, also supported by the Agnelli Foundation in 2022. This centre provides much needed training in artificial intelligence and new technologies. Through such activities of CSR, Ferrari has established itself strongly in the community space it resides in.

4. CSR is about conforming to set standards. An example is Starbucks, which is a prime example of near 100% ethical sourcing. It buys 3% of all the world’s coffee, with 400,000 farms in 30 countries. Yet, as early as 2015, Starbucks confirmed that 99% of its coffee supply chain is ethically sourced. This was indeed a remarkable achievement; other companies should indeed emulate. With co-operation from farmers and other organizations, it hopes to boost that figure to 100%.

The brand originally created the C.A.F.E (Coffee and Farmer Equity) standards in collaboration with Conservation International. CAFE assesses coffee farms based on specific economic, environmental and social standards, and assures that Starbucks can continue to produce great quality coffee without affecting sustainability or transparency.

5. Sometimes CSR is about challenging the norms. How many companies around the world have CSR programs where children have a say? Build the Change by LEGO gives children a chance to voice their feelings about the world around them and bring about positive social and economic change. Children contribute their ideas on how to use ideas they have learned from LEGO to make the world a better place.

“We are on a mission to make children heard and use their ideas and visions to inspire leaders around the world.”, says LEGO. To celebrate the 90^th Anniversary of LEGO, the ‘Fly Away Isles’ playground was built in Harlem, New York City, the site of the Black Renaissance. The Build the Change program sourced ideas from children in the local community and the designer Hebru Brantley used these in his design of a playground. It was so well received that it received the Drum Award in 2022 (for best communication and marketing).

Role of HR in CSR

The role of HR in CSR is the same as that of a general on the battlefield, that of rallying the troops. HR has the primary responsibility to ensure that employees contribute and adapt to social responsibility programs, that they become active volunteers, always ready for anything like Goofy!

HR is also involved in the planning of CSR, its implementation and the celebration of its achievements. The benefits of a great CSR program to the HR team and the organization are many, such as a positive image for the company, attracting better talent, and inspiring loyalty and retaining employees.

Closing Words

Corporate Social Responsibility is enshrined in the law of the land. It finds expression when companies work towards safeguarding human rights and the ecological balance and improving the socioeconomic conditions of nations, they operate in. Impactful CSR begins with the realisation of this responsibility and gains momentum with the achievement of observable results. We hope that these examples of impactful CSR can help your company navigate this landscape.