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Corporate social responsibility (CSR) is becoming increasingly crucial for business success in today's world.

But what exactly is CSR? It refers to a company's obligations and responsibilities to the society around it. In other words, CSR is a company's action to make positive changes in the communities in which it operates, rather than focusing solely on its interests.

Below are practical explanations of the functions of corporate social responsibility. 

What is the role of corporate social responsibility?

In simple terms, CSR means that a company should be socially responsible, positively contributing to society's development.

CSR is an increasingly important factor for companies today, as more and more attention is being paid to sustainability and social responsibility.

Although there is no single function of corporate social responsibility, most organizations agree that there are three types of CSR activities that a company should undertake: 

1. Responsible business practices

2. Community engagement

3. Social and environmental impacts 

It is important to note that it is not only profitable companies that engage in social responsibility. Non-profit organizations can also contribute to the community.

How is CSR applied within organizations?

Corporate social responsibility goes beyond the company's bottom line.

Companies should or must give back to society through their products, services, and philanthropic efforts.

This means that companies must be committed, aware, and accountable for the effects of their operations on workers and local communities.

Social responsibility is not something you should do on holidays or when the company is in financial trouble.

It should be part of the organization's DNA; it is part of demonstrating that there is a culture that is always present.

It does not mean that a company has to donate to absolutely every charity.

Instead, you can find innovative and more meaningful ways to help local NGOs, whether through volunteering, employee engagement, or simply founding charities in your community. 

Why is corporate social responsibility important?

As mentioned above, today's businesses are increasingly placing more and more importance on sustainability and social impact. 

As a result, CSR has become a new competitive advantage by leveraging ethical and sustainable practices that can positively impact a company's brand and reputation.

For example, a company that sells food products may decide to reduce the sugar content in its products. This decision could help people control their sugar intake and reduce the risk of developing diabetes.

While this change may mean a slight reduction in the company's sales, it will also help reduce the number of people who get diabetes. Therefore, it will reduce overall business costs.

In addition, this could attract new customers looking for healthier products from companies that are honest with their customers. 

Limitations of corporate social responsibility

Despite the growing popularity of CSR initiatives, there are some limitations to keep in mind.

• First, companies are not social service organizations, and their main objective should not be to help the community. Instead, they operate to generate profits and create value for their investors. Only NGOs and foundations have that ultimate purpose, as they are not-for-profit corporations.

• Second, some stakeholders and even customers may not agree with how companies apply the concept of corporate social responsibility. 

For example, a company operating in a sector that the government heavily regulates may not have the option of donating to charity to enhance CSR efforts.

Finally, CSR is an increasingly important factor for businesses today. More and more attention is being paid to it before a purchase is made or when the organization is accountable to a government agency.

CSR programs go beyond the company's bottom line. Companies need to give something back to society through their products, services, and philanthropic efforts.

For companies to be successful in the long term, they must go beyond their commercial interests and commit to doing what is best for society, regardless of their profits. 

Throughout the years, Fundación Esperanza Contigo has received support from companies from different regions to create quality programs and high-impact projects for shelters for the neediest youth in Baja California.

If your company wants to continue or start giving back to society, this is the perfect time to do it.

Donate today!