Business philosophy

CSR is a business philosophy that encourages companies to consider the social, environmental, and economic impacts of their operations

Voluntary actions

Examples of CSR initiatives

CSR can include efforts to reduce carbon footprints, improve labor policies, engage in fair trade, and support community development

Importance of distinguishing genuine CSR efforts

It is critical to distinguish between genuine CSR efforts and those that may be perceived as mere public relations tactics

Archie B. Carroll's pyramid of corporate social responsibility

Carroll's pyramid illustrates four levels of CSR: economic, legal, ethical, and philanthropic responsibilities

Four levels of CSR

Economic responsibility

The base layer of Carroll's pyramid holds that a company must be profitable, as financial viability is essential for corporate survival and for providing value to stakeholders

Legal responsibilities

Legal responsibilities require businesses to comply with laws and regulations

Ethical responsibilities

Ethical responsibilities encourage companies to act with fairness and integrity, even when not compelled by law

Philanthropic responsibilities

Philanthropic responsibilities represent voluntary actions companies take to improve the well-being of society, such as donating to charities or supporting community programs

The Body Shop's 'Enrich Not Exploit' commitment

The Body Shop's initiative includes 14 targets across three areas: enriching people, products, and the planet

Objectives of 'Enrich Not Exploit'

Supporting communities

The company aims to support communities through its 'Enrich Not Exploit' commitment

Ensuring product sustainability

The Body Shop's objective is to ensure product sustainability through its 'Enrich Not Exploit' commitment

Protecting the environment

The company's goal is to protect the environment through its 'Enrich Not Exploit' commitment

Benefits of CSR

CSR offers significant benefits to businesses, including enhanced brand reputation, customer loyalty, and competitive advantage

Challenges of implementing CSR

Risk of public skepticism

There is a risk of public skepticism if CSR efforts are perceived as superficial or as a form of greenwashing

Costs associated with CSR

The costs associated with adopting CSR practices, such as investing in sustainable technologies or training employees, can be significant

Conflicts with short-term shareholder interests

There may be conflicts between CSR objectives and short-term shareholder interests, particularly if there is a perception that CSR activities might reduce profits