What is CSR? How does DEI relate to CSR? This article gives you a brief explanation of CSR knowledge!
In addition to the previously mentioned ESG and SDGs, CSR is also an important part of the concept of sustainable development. Now, let's take a look at what CSR is and the relationship between CSR and DEI!
What is CSR?
CSR refers to Corporate Social Responsibility, which is still not clearly defined. In 1970, Milton . Friedman pointed out that corporate social responsibility is to increase profits; In 1979, scholar Carlo proposed that corporate social responsibility should include economic responsibility, legal responsibility, moral responsibility and discretionary responsibility.
The Code of Practice on Corporate Social Responsibility of Listed OTC Companies in China mentions that in fulfilling corporate social responsibility, listed OTC companies should pay attention to the rights and interests of stakeholders, pay attention to environmental, social and corporate governance factors while pursuing sustainable operation and profit, and incorporate them into the company's management policy and operational activities.
Therefore, the current general perception of CSR is that in addition to complying with laws and regulations and pursuing economic benefits, companies must still contribute to the sustainable development of the environment and society, such as improving the workplace environment, paying attention to consumer rights, avoiding environmental pollution, and so on.
The quantitative evaluation index of CSR is the return on social investment (SROI), which assesses the social value of each dollar invested. This indicator will facilitate the digital management of CSR.
Why should companies practice CSR?
According to the "CSR can bring benefits to the company's business strategy? —Evidence from the World's Top Academic Journals" points out that incorporating CSR into a company's business strategy has the following seven benefits:
- Increase company profitability
- Increase the value of the company and return on stock
- Reduce the company's risk
- More stakeholders are happy to interact with the company
- Reduce the company's cost of capital
- Reduce information asymmetry and strengthen the company's integrity image
- Increase the competitiveness of the company
In conclusion, since CSR has become a key indicator for domestic and foreign enterprises to evaluate cooperation, corporate social responsibility can help increase cooperation opportunities and competitiveness. In addition, when enterprises pay attention to environmental issues and organize public welfare activities, they can also help enhance consumer goodwill and gain the trust of investors.
Not only that, when companies provide more complete benefits and create a diverse and friendly workplace environment, it can also help companies recruit and retain talents.
Who is implementing CSR?
Domestic enterprises have long begun to implement CSR, and the following is a simple list of the implementation methods of local enterprises to help you better understand the operation and results of CSR.
Taiwan Cement Corporation actively participates in community development and charity related activities, such as this year's DAKA Market re-soliciting stall merchants, the investment conditions are to reduce the use of disposable tableware and provide passengers with their own tableware.
In addition, the cleaning fee, guide fee of the market and the fixed monthly revenue of the unified group's stores will be injected into the local peace primary education fund to improve the learning environment of rural primary schools.
Yushan Financial Holdings
Yushan Financial Holdings provides employees with diversified benefits and care, provides employees with 60 days of maternity leave, 8 days of maternity examination leave and paternity leave that exceed the law, and also creates the first Yushan Baby Growth Fund to share the hard work of peer parenting.
In addition, Yushan has long promoted gender equality in the workplace, and since the marriage equality bill came into effect, it has immediately provided benefits and marriage subsidies related to same-married colleagues, and has also set up gender-friendly toilets in each of its own buildings to take into account the rights and interests of gender divergent people.
Unified Supermarket supports local farmers, fisheries, vegetables and fruits with three major strategies: stable procurement, sustainability and planning support, reducing the carbon footprint and bringing economic benefits to local farmers, thereby achieving the goal of supporting the society.
Last year, more than 60 kinds of unified-owned fresh food products used Taiwan Terrier No. 9 rice and Tainan No. 11 rice, and it also cooperated with more than 40 production and marketing classes and more than 300 local fruit farmers to build a fresh vegetable and fruit supply chain, further promoting the store to become a platform for youth entrepreneurship and assisting local youth to put high-quality products on the shelves.
How does CSR relate to DEI?
In addition to the company's own profit goals, CSR must also contribute to the sustainable development of society and the environment, and it is a comprehensive management concept that must take into account diverse stakeholders such as employees, customers, consumers, and the community environment.
Under the global guidance of the SDGs, the indicator principles of DEI & ESG will be updated to replace CSR thinking, and enterprises need to take into account all actions in corporate governance and business activities into the sustainable development of all mankind. DEI is a practical principle that builds on its concept and further starts with positive action from the internal structure of the enterprise.
Through DEI, enterprises will be able to implement the concept of CSR in corporate culture and governance, and further embrace diversity (D, Diversity), achieve equity (E, Equity), and achieve inclusion (I, Inclusion).
CSR and DEI complement each other, and if you also want to create a DEI inclusion circle, women's fans offer course training, digital media coverage, a diversity and inclusion vision award, and a corporate vision meeting.
Invite you to practice DEI with us!