The commitment to good corporate citizenship has taken a firm footing in today’s business environment. The landscape of corporate social responsibility (CSR) is rapidly evolving to meet the challenges of our world. With overwhelming issues like war, public health crises, and rapid climate change afflicting people across the globe, corporations have come to realize they have a growing moral and ethical obligation to take action. While CSR is certainly not a new concept – its roots date back to the Industrial Revolution – emerging trends in CSR are paving the way for organizations to get involved. This year holds the potential to transform CSR from sustainability and social justice to community-centric funding decisions. This article looks at the top CSR trends of 2024 and suggests how you can incorporate these practices into your own CSR strategy.
The benefits of an evolving CSR strategy
CSR is a business model wherein companies hold themselves socially accountable to themselves, their stakeholders, and the general public. CSR initiatives have a prominent place within the “triple bottom line” framework, which refers to a business’s impact on people, profits, and the planet. CSR programs – on any scale – have become more accessible, with governing bodies such as the United Nations, the European Union, and the International Organization for Standardization (ISO) 26000 on social responsibility providing developed frameworks to guide corporations. A good CSR strategy has become non-negotiable. Why should your organization give it any thought? The United Nations explains it perfectly: “A properly implemented CSR concept can bring along a variety of competitive advantages, such as enhanced access to capital and markets, increased sales and profits, operational cost savings, improved productivity and quality, efficient human resource base, improved brand image and reputation, enhanced customer loyalty, better decision making, and risk management processes.” But it’s more than the bottom line. A worldwide propensity for socially conscious organizations is growing as consumers, especially millennials, demand that organizations take better care of the world, foster environmental sustainability, and directly confront our soaring climate challenges. CSR programs can be as small as a company recycling program or fundraisers with a local nonprofit or as big as Yvon Chouinard’s $3 billion donation of Patagonia to a trust aimed at combating climate change. Being a good corporate citizen is more important now than ever before, and your CSR strategy should reflect the world’s evolving challenges. Not sure where to start or how to improve your CSR initiatives? Here are some of the top trends in the CSR this year. Let’s see how your organization can implement these important practices.
1. CSR and sustainability
It’s easy to see why CSR and sustainability go hand-in-hand. The word “sustainable” itself has become popular in today’s parlance as a way to describe the desire for healthier business practices and strategies and even for everyday actions. The European Commission explains the goal of a “circular economy” in its outline for sustainability, stating that in such an economy, we must value products and materials for as long as possible in order to minimize waste and resources and contribute to innovation, growth, and job creation. Environmental stewardship includes reducing pollution and emissions in manufacturing and general business practices, carbon offsetting when appropriate, and replenishing natural resources like trees.
How to get involved in climate action and environmental sustainability
You don’t need deep pockets or in-depth knowledge to incorporate environmental sustainability into your own company’s values and mission. Here are a few simple ways to get started. Partner with a nonprofit organization Teaming up with a reputable nonprofit organization focused on climate initiatives that interest your organization is a win-win. The nonprofit gains your support, and your company gets access to projects and actions that can make a real difference. Opportunities abound to engage your team and community, from special volunteering days to co-marketing that attracts others to your cause. Consider long-term possibilities in your CSR strategy Sustainability maintains what works; this should include how you look at your CSR strategy. Find opportunities that provide your organization a way to contribute to progress in the future. Progress might be slow, but it pays off down the line. Create a circular business plan to support sustainability Organizations can achieve better environmental and financial performance by adopting a circular business model. This can mean reducing production materials and using fewer resources to prolong the lifetime of your products and services or implementing recycling programs into operations.
2. CSR and DEI
In the wake of last year’s landmark US Supreme Court decision that banned race as a consideration in university admissions, the fight for social justice and equity across all spectrums has been thrown into the limelight as a centerpiece of CSR initiatives in the US and across the globe. Diversity, equity, and inclusion (DEI) initiatives align with social responsibility and social justice, and both internal and external stakeholders benefit from the pair. Internally, employees find power as members of a diverse workforce that keeps pace with your company’s diverse CSR commitments. Externally, the community at large sees your company’s inclusion practices as signposts of a true ally.
Start at home: ingraining equity into your organization Instilling equity and DEI into your CSR doesn’t have to be a monstrous challenge. It can begin with a close look at your company’s culture and practices regarding equity. Check for pay gaps across gender, race, disability, sexual orientation, and other protected identities. Create a company-wide statement on your DEI policies and initiatives. Look for ways to celebrate diversity across your organization. Cultivate a culture of diversity in your company and CSR strategy with these tips. Look for external partners that are closely aligned with diverse communities Involve your employees in events to support your initiatives, such as charity events, walkathons, or clean-up days. Offer your company services pro bono to local organizations that could benefit. Invite your employees to participate to give them a sense of ownership in the initiatives. Align your DEI programming with your CSR strategy by providing training about your social responsibility initiatives.
3. CSR and community-centric decision making This year, CSR is all about community. People want to make a difference where they can. If you want to earn trust and respectability close to home, you have to follow in the footsteps of your community members and leaders. Following the move in the philanthropic sector to challenge hierarchical giving and pivot toward trust-based donations, CSR initiatives are taking the hint, with the community at the front and center of many CSR strategies. To understand what your neighborhood needs, include diverse members of the community in the decision-making process. Organizations are finding it helpful to listen, conduct needs assessments, and forge vital partnerships with key community stakeholders to grow tangible impact.
Trust-based philanthropy: the new model for community-centric giving Trust-based philanthropy redistributes power to build an equitable nonprofit sector beneficial for all participants. It calls on funders and organizations to recognize the traditional power imbalance and work purposefully to rectify it. An increasingly effective and accepted approach, this funding model seeks to grow impact by building trust and accountability among partners. It gives nonprofits discretion and empowers them to course-correct as circumstances evolve. At the same time, a trust-based philosophy gives funding organizations like yours a deeper understanding of the environmental challenges we face.
A few effective ways to integrate trust-based philanthropy into your giving include the following. Provide transparency about your giving. Where does the money go? How do you use it? How involved are you in the decision-making for the funding? Consider offering unrestricted, multi-year general funding. This would give latitude to community organizations looking to build sustainable impact and reduce the amount of accounting documentation required from overworked nonprofit employees. Minimize bureaucracy wherever possible. Create a screening process that indicates the likelihood of funding. Adopt an open-submission policy that allows eligible grantseekers to apply at any time. Consider the reporting you require to exclusively collect relevant qualitative and quantitative data.
Benefits of trust-based philanthropy Trust-based philanthropy has proven to be a very effective strategy for both communities and the organizations working to support them. The practice of building trust and respect in funding partnerships increases impact and provides amazing results. In a nutshell, trust-based philanthropy: Offers greater access to funding opportunities for lean nonprofits Alleviates the burden of grant management Relies on strong relationships to serve the community’s needs Empowers community members…
