Corporate Social Responsibility (CSR) is a practice that has been in existence for many years now. It was first introduced by the United Nations in the year 2000, and since then it has gained a lot of popularity.
According to the Global Compact Network, CSR is defined as ‘an organization’s commitment to being socially responsible and its implementation through policies, processes and activities that go beyond regulatory compliance to improve the quality of life of its workers, customers, business partners and local community’
The main aim behind CSR is to create an equal opportunity for all people around the world. A company can serve as a role model by contributing to the welfare of society through their various initiatives such as education, healthcare or environment protection. It helps them develop long-term relationships with communities which are beneficial for both parties involved.
The rising trend of CSR:
One thing that has changed over time is how we perceive CSR strategy today. In the past, it was mostly considered a ‘good deed’ by companies but now it has become an integral part of business strategy and even profitability. This can be seen from how companies have started using this as a tool for marketing purposes by associating themselves with social causes that matter most to their target audience
The CSR (Corporate Social Responsibility) Trends for 2022 are expected to be as follows:
- CSR will be more than just a Corporate initiative, but will become a business imperative.
- The focus on sustainability and environmental issues will continue to grow in importance.
- More companies will start integrating their CSR activities into their core business.
- There will be greater focus on community development and social justice issues, especially in developing countries.
- CSR initiatives will increasingly focus on global issues such as climate change and pollution control, with an increasing emphasis on renewable energy sources and low carbon emission technologies like electric vehicles which are being developed by companies like Tesla Motors Inc., Nissan Motor Co Ltd., Toyota Motor Corp etc., who are all leaders in the field of electric vehicles technology and innovation.
Corporate social responsibility (CSR) is the concept of a company or organization’s taking responsibility for its impacts on society and stakeholders. CSR strategies include:
- Environmental sustainability. Companies are increasingly recognizing the importance of managing their environmental impacts. This may include reducing greenhouse gas emissions, conserving natural resources and engaging in renewable energy projects.
- Market access. A growing number of companies are working to expand their markets beyond the U.S., Europe and Japan by tapping into emerging economies.
- Employee development. More businesses are creating programs designed to help employees develop skills that will benefit both them and their companies, such as leadership training or financial literacy education.
- Product safety and quality assurance. With more consumers demanding safe products, especially in food and drug industries, businesses have increased their efforts to comply with regulations and improve product safety standards through processes like hazard analysis critical control points (HACCP).
In 2022, when millennials are at the helm of most companies, they will demand that their companies take on more responsibility for everything from environmental protection to poverty alleviation. The result will be more companies focusing on CSR issues such as climate change and biodiversity loss.
Looking ahead to 2022, we see that many of the challenges being addressed today will still exist. Social consciousness will continue to increase, and businesses around the world will become more aware of their impact on the environment, their customers, employees and surrounding communities. That said, we do see a few key trends that will have a major influence on how Corporate Social Responsibility is practiced in the coming years.