Corporate Social Responsability

Definition

Governments and international organizations play a central role in the extension of social security. However, they are not the only entities that can contribute to achieve this objective. Indeed, private companies can also be considered as potential key contributors. Through their Corporate Social Responsibility (CSR) strategies and practices, they could significantly accelerate the pace of the extension of social security around the world.

CSR can be seen as the responsibility of enterprises for their impact on society. In other word, it is the voluntary integration of social and environmental concerns in companies’ business and in their relationships with their stakeholders. addresses several themes such as social aspects, environment, and economics. It is common to talk about a “3P approach” – for People, Planet, Profit – or Triple Bottom Line. CSR is therefore an encompassing approach to global issues, such as climate change, labour rights or social security.

Stakeholders

At the centre of CSR is the concept of “stakeholders”. A stakeholder is a party that can affect or be affected by the actions of the company. socially responsible company takes into account various stakeholders: its shareholders of course, but also its employees, clients, suppliers as well as NGOs, local communities, and so on. Therefore, a company has to consider groups and individuals with new expectations and faces a new kind of risks, but also a new kind of opportunities.

CSR practices

CSR practices are voluntary initiatives. These initiatives are presented not as alternatives to regulation, but regulations that may be established in addition to the existing law. Indeed, CSR cannot and should not be a substitute for legislation. CSR can be likened to the concept of soft law, in the sense that it lacks any legally binding obligation. However, it is important to mention that some of the CSR initiatives are undertaken in anticipation of future legislation. Therefore, CSR has to be considered as part of the strategy of the company, with particular attention to the competitive advantage that such practices can provide.

It is important that the company focuses its CSR efforts on what is relevant to its core business. Indeed, a company needs to benefit from such initiatives as well as its stakeholders. That is why it must implement its CSR initiatives in the frame of its core business and strategy, as well as in compliance with international standards – such as the ILO Core Conventions or the Decent Work Agenda – in order to make sure to encompass all of its stakeholders and to avoid adverse publicity and additional costs in case of non-compliance.

This is particularly important in the case of supply chain management: both the suppliers could benefit from sound CSR practices, but could as well suffer from lack of compliance to international standards.

CSR is definitely based on a win-win model. Indeed, both the company and its stakeholders can benefit from such practices. The companies can gain access to new markets, mitigate risks, enhance their relationships with authorities and improve their reputation, etc. On the other side, the communities – for instance – can benefit from better living conditions, a better access to products and services, etc.

CSR and Social Protection

Through CSR, multinational and local companies could participate in the development of social protection. First, they can provide services for employees, their families and the larger community – for instance, by building a health center or by extending social security coverage to their employees' families. Second, they can engineer products and services that are both affordable to poor people and responding to their need of social protection in areas as diverse as health, security or pensions. As stated previously, it does not mean that companies should build a completely private social security system, but rather that they can provide complementary services to what the State offers.

Such practices are in line with the Decent Work agenda and its 4 strategic objectives, including the one related to social security: “Enhance the coverage and effectiveness of social protection for all”. The initiatives taken by the companies can help to achieve several outcomes aimed by this objective such as:

More people have access to better-managed and more gender-equitable social security benefits.
Women and men have improved and more equitable working conditions.
Workers and enterprises benefit from improved safety and health conditions at work.

In the field of social security, Corporate Social Responsibility can make a difference that would be beneficial to the companies’ stakeholders as well as to the companies themselves. Any company will benefit from a society that is healthier, better educated and more confident about its future. One of the crucial aspects for the future is the extension of social security and Decent Work criteria within the company and its supply chain. As of today, an important number of organizations have implemented sound CSR practices and policies, but there is plenty of room for new developments, especially on the field of social security.

Learn more about corporate social responsability

CSR and the Social Protection Floor
Best Practices
CSR and the Fight against Poverty