Corporate Social Responsibility: A Comprehensive Analysis

Introduction

Corporate Social Responsibility (CSR) refers to the voluntary commitment of the organization to behave fairly and appropriately with the environment in which it operates (Velte, 2021). Therefore, organizations exercise their economic, social and environmental responsibility when they meet the demands of the different stakeholders involved in the operation of the organization (Lindgreen & Swaen, 2010).

There are ten main reasons why organizations implement CSR programs: (1) to improve corporate image and reputation, (2) to prevent risks, (3) to attract and retain talent, (4) to improve the working environment and productivity, (5) to foster innovation, (6) to improve energy efficiency, (7) to bring advantages in attracting financing, (8) to increase consumer and customer loyalty, (9) to facilitate obtaining awards and recognition, and (10) to place the company in the preference for public contracting and bidding.

We are currently experiencing what experts refer to as the reputation economy. In markets where everything is copied, intangibles - brand and reputation - have become fundamental variables for differentiation. Reputation building has also been transformed in recent times. The company is still the main actor, but no longer the only one (Flammer & Luo, 2017). Today, the contributions and interactions of customers, employees, suppliers and other stakeholders play an essential role, which is why CSR plays a key role (Chernev & Blair, 2015).

CSR is also a very effective instrument to reduce the potential risks associated with the activities carried out by companies (Baxi & Ray, 2012). The creation of codes of ethics and conduct, the establishment of responsible standards in the selection of suppliers or the incorporation of environmental or human rights considerations throughout the value chain significantly reduce the likelihood of companies engaging in malpractice (Birch, 2017). By strengthening the control of a company's operations, it can minimize conflicts with the communities in which it operates, reduce complaints and legal proceedings, improve relations with customers, employees, trade unions, public administrations and other stakeholders, and drastically reduce the possibility of suffering risks such as negative publicity or boycotts of its products or services (Okafor et al., 2021).

Millennials will make up the bulk of the workforce of the future. According to forecasts, they will account for 75% of the workforce by 2023 (Ye et al., 2020). For millennials, work is not a burden, but an area of enjoyment and fulfilment. When they value a job, the economic factor loses weight to variables such as its suitability for their life project. They seek to join causes, prefer companies that are committed to society and the environment, and value environments that promote multiculturalism and diversity. In this scenario, CSR helps to design and offer innovative and attractive proposals for this new profile of 21st century workers (Duanmu et al., 2021). In addition to attracting and retaining talent, a good CSR strategy has very positive effects on the degree of satisfaction and commitment of employees to the company. The implementation of corporate volunteering programs offers many advantages. It improves employees' motivation, skills and self-esteem; it fosters pride in being part of the company and reinforces employees' involvement and commitment to the company. Proper diversity management has a positive impact on productivity and competitiveness, which increases the likelihood of finding more innovative and robust solutions (Glavas, 2016).