What does the CSR mean?
Term ‘Corporate Social Responsibility (CSR)’ refers to ensuring the economic success of a business by the inclusion of social and environmental considerations into a company’s operations. Specifically, CSR is the voluntary actions that business can take, over and above compliance with minimum legal requirements, to address both its own competitive interests and the interests of wider society.¹
Why development of CSR will be beneficial for Georgia?
CSR is understood as a part of the business contribution to sustainable development, as it has the potential to contribute to various common goals, such as social cohesion, economic competitiveness, poverty eradication, creation of jobs, improvement of working conditions, guaranteeing of the rights of employees, and a more rational use of natural resources. Accordingly, the strength of this concept apart from its moral value, is the diverse and long-term benefit that the introduction of CSR bring to all stakeholders.
Besides, development of CSR in Georgia will contribute to the accomplishment of the strategic objectives of the national policy and fulfillment of the obligations imposed by EU-Georgia Association Agreement, as the requirement to encourage responsible business practices is addressed in several articles of the Association Agreement.
Why is CSR beneficial for the companies?
There is growing consensus about the connection between CSR and business success. Business opinion polls and analysis of a corporate practices both show that a coherent CSR strategy based on a long-term approach offers clear business benefits to companies and contributes to the well-being of society. In addition to building trust with the community and giving firms an edge in attracting customers and employees, acting responsibly towards workers and others in society can help build value for firms and their shareholders. Also, investors and financial markets agree that CSR activities that integrate broader societal concerns into business strategy and performance are evidence of good management.
In other words, CSR is a strategic approach for the companies to address issues associated with their interactions with others and, through those interactions, succeed in their business endeavors.
¹Definition is based on: Communication from the Commission concerning Corporate Social Responsibility: A business contribution to Sustainable Development, Commission of the European Communities, Brussels, 2002; UK Government CSR Report 2009, www.csr.gov.uk.