The Importance Of CSR For Companies

Lorenzo Baronti  <img src="" alt="Trulli" width="25" height="25">
Lorenzo Baronti Trulli

Masters in Circular Economy - Università degli Studi della Tuscia

Consumers, employees and institutions are clamoring for a new way of doing business, which is more attentive to social and environmental issues. Businesses are answering by developing a more responsible and sustainable role to remain competitive.

What is CSR?

The acronym CSR stands for Corporate Social Responsibility, it refers to a company policy that manages to combine profit with consciousness to the environment and social issues, thus including a view to future sustainability. In other words, it consists of ethical practices and behaviors that a company adopts on a voluntary basis, going beyond simple compliance with the rules, to help manage problems related to people and the environment.

The origins of Corporate Social Responsibility are born back in 1953, when Howard R. Bowen wrote his book “Social Responsibility of Businessman”, wondered what social responsibility the management of a company should have had. Then, over the years, the concept has evolved: in 1991 Archie B. Carrol, bestselling author, drew up the famous CSR pyramid. A pyramid at the base of which we find long-term profit and, in rising levels, compliance with the laws in terms of labor law and public health, ethics (and therefore attention towards customers and suppliers) and philanthropic responsibility.

If in the past companies took on activities of voluntary actions and donations, today the concept is much broader and concerns corporate life in all its aspects: inclusiveness, gender equality, measures against global warming and every relevant social and financial aspects.

The benefits of CSR

Benefits for companies are strictly related to a valid Corporate Social Responsibility strategy, which is to be identified in four main areas:

These four areas therefore individuate a CSR strategy which generates a series of benefits and advantages that are not limited to people or to the environment, but is nowadays a key factor for companies which aim to increase valuable assets.

The commitment of large, medium and small companies to behave in an ethical and correct way can promote respect for human rights along the entire production chain, together with an effective management of natural resources and the reduction of environmental impact, therefore bringing positive effects on local communities, suppliers, customers, consumers and territories.

Furthermore, a correct and ethical management of human resources can improve the work / private life ratio of employees, health and safety in the workplace and company organization. Aspects that generate benefits for workers but also for the company itself, in terms of involvement and productivity. Not to mention the positive effects on image and reputation: through social responsibility reports, the company can communicate its commitment to sustainability externally, obtaining results on sales and loyalty.

Investing in CSR, therefore, brings with it several advantages for the company:

In addiction, from the point of view of workers Corporate Social Responsibility improves conditions in the workplace, but also the relationship between work and private life and the relationships between colleagues.

CSR as a key asset for Alkebulan

Alkebulan business model will be entirely based on sustainability, from the very first processes to the final product delivery. By the moment that the term “sustainable” refers both to the environmental, financial and social ethical approaches, Corporate Social Responsibility will be one of the main focuses for the company.

For this reason Alkebulan’s activities are strictly related to the local sustainable development and will invest around 120.000 $ per year.

Around 50 local males and females employees will be trained, educated and hired to operate in our information center, in the Green Briquette manufacturing and within our in-house organic fertilizer processing.

Local citizens will also benefit of an on-site Alkebulan Dispensary, which will provide free diagnosis and consultations, together with medication offered at the lowest rates and free for Alkebulan employees.

In addiction, Alkebulan will provide communities with free briquettes for household cooking, free organic fertilizer for 20 small stakeholder farmers, and free fodder produced from rejected briquettes.

But we’re not done yet, we will be able to build an Alkebulan Canteen which will offer products with high nutritive values, and specific for certain diets.