The entrepreneur is the most transformative being and the company plays a central role in society. However, today the expectations of the role is, on the part of the different actors, it has been changing. The firm must not only comply with its legal obligations, but must go beyond these and be frankly involved in the economic, social and environmental problems of its locality, in particular and of society in general.
The public scrutiny of the role of the company in society is today, more than ever, present. For this reason, the relations and the approach that it maintains with its interest groups, be it clients, workers, government, businessmen, distributors, suppliers, shareholders, etc., becomes vital as a factor of competitiveness, and even survival, of the company in the long term.
Companies can greatly avoid the social and environmental consequences of their operation, if social responsibility and the creation of effective alliances as external partners, such as Non-Governmental Organizations (NGOs) and the government, are incorporated into their strategy.
As the authors Porter and Kramer affirm "By contributing to the creation of companies, capital investment, purchase of supplies and, in general, doing business on a daily basis, they already exert a positive influence on society, because they contribute to its prosperity". However, the way they do business is questioned.
The pressure on companies is increasingly in their transparent, solidary and responsible actions in the community where they are inserted and with respect for the environment and human rights, throughout their value chain.
This means that businesses align these aspects to their strategic objectives and communicate them in a more comprehensive and systemic way to society, in general and to their stakeholders, in particular.
In other words, companies must operate in a way that ensures economic performance that allows them to remain in the long term, preventing their operation from being detrimental to society and the environment, and on the contrary, contributing positively in these areas. for the common good (Galindo, 2014).
CSR concept
Also called Corporate Social Responsibility (CSR) is the conscious and consistent commitment to fully comply with the purpose of the company, both internally and externally, considering the economic, social and environmental expectations6 of all its participants, demonstrating respect for the people, ethical values, the community and the environment, thus contributing to the construction of the common good according to the Mexican Center for Philanthropy (CEMEFI, 2016).
10 Principles of a Company with CSR
The following are 10 principles divided into four guidelines that make up a universal definition for responsible business, requiring companies to operate in a way that, at a minimum, responds to fundamental responsibilities in the areas of human rights, labor, the environment and corruption. (Herrera, 2016):
Human rights
- Support and respect the protection of human rights. Do not be complicit in the abuse of human rights.
Labor Standards
- Support the principles of freedom of association and the right to collective bargaining. Eliminate forced and compulsory labor. Abolish any form of child labor.
Eliminate discrimination in employment and occupation.
Environment
- Support the preventive approach to environmental challenges. Promote greater environmental responsibility. Encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption
- Act against all forms of corruption, including extortion and bribery.
Code of ethics
The code of ethics is an important pillar for building a socially responsible business organization and establishing this intangible asset allows clear communication between managers and employees about what is right and what is wrong in the same company, said the CEO of TÜV SÜD America of Mexico, Leonardo Cárdenas Costas.
ITAM researcher on sustainability issues, Antonio Lloret, considered that a code of ethics is based on establishing the internal norms that work best in the company and that the managers, when establishing them, think about what improvements they want when forming it.
"Ethics leads business organizations to have an implicit vision, commitment and faith, understood as a belief that can be built, in this case to strengthen sustainable or sustainable corporate responsibility," said the professor.
Teaching courses within organizations on ethics aimed at employees, Leonardo Cárdenas considered it to be ideal, but this training may not be for all staff, “and it is desirable that companies in Mexico act ethically within and in all levels and always be consistent ”.
Antonio Lloret indicated that among the benefits of the training are that the staff structure will take various actions in their daily work ethically in favor of the company, since it will act in accordance with laws and regulations that are already established.
“Beyond using the code of ethics as a tool, it is a pillar of the Socially Responsible Company (ESR), since it establishes a value system that affects decision-making that corresponds to the managers or owners of the companies, which They will be the ones who set the example of the new business culture ”, explained researcher Lloret.
How to develop a Code of Ethics
The development of the code must follow the guidelines from the parent company, the board of directors or the owners of the company
The process should be seen as a stage that will culminate with the commitment of all the members of the organization and that in the end will reflect its organizational culture (Herrera, 2016):
- Integration of the leading team in the process of its elaboration. Induction for the leading team. Communication strategy. Writing of the code. Operating and monitoring mechanisms. Regular updating.
Benefits of Implementing CSR in the Company
When exercised, Corporate Social Responsibility modifies the company's social and ethical role, according to the needs and context of each company, and according to the requirements of each society. CSR provides real and tangible benefits for the company, which can be measured in different ways, based on quantitative and qualitative information (CEMEFI, 2016).
Among them are:
- Loyalty and less rotation of the relationship groups (stakeholders). Improvement of relations with neighbors and authorities. Contribution to the development of communities and the common good. Increased visibility among the business community. Access to capital, by increasing value of your investments and long-term profitability. Better informed business decisions. Increase in the ability to receive financial support. Improvement in financial performance, reduce operating costs by optimizing efforts and make more efficient use of resources focusing on development sustainable.Improved corporate image and strengthened the reputation of the company and its brands.Increased sales, reinforced customer loyaltyIncreased productivity and quality.Improvement in the skills to attract and retain employees, loyalty and a sense of belonging are generated among the staff. Reduction of regulatory supervision. Teamwork is promoted and made more efficient.
The world's leading companies have incorporated Corporate Social Responsibility into their business strategy as a differentiating element and as a competitive advantage, with positive financial results.
More and more studies, carried out in different parts of the world, prove the positive correlation between economic and financial results and the company's socially responsible behavior.
Public opinion today expects the company to be part of a positive change in society, contributing in a sustainable way to the development of the communities.
The company therefore receives benefits such as efficiency and individual and collective responsibility; a balance between personal and work life; a positive impact on profitability, efficiency and productivity; better worker-employer relations; and the perception of the company as highly human and socially responsible.
Other benefits can be listed such as:
- Reduces absenteeism. Decreases staff turnover. Reduces stress and motivates workers. Improves efficiency and performance at work. Creates proactive leaders within the company. Improves the image of the company. Generates identification with the company and staff integration.Improves the organizational climate within the company.It provides a human aspect to the company and puts it in direct contact with society.It develops people, both personally and professionally, by opening more possibilities of participation in the activities of the company, accumulating more experience and offering more opportunities for personal fulfillment to employees and workers.
Importance of CSR
Economic and social development improves the living conditions of the communities. In the case of Mexico, it is clear that there are still countless issues to be resolved to build an environment that offers all of society the satisfactions it needs.
As the globalization process is a reality in the world, business communities enjoy, day by day, greater influence, and their contributions are increasingly significant in building a fairer society and an economy with sustainable growth that allow to reduce and eradicate the misery and poverty that an important segment of the population faces.
The only way to attack poverty is by generating wealth. Poverty is everyone's business.
Companies cannot be prosperous in a country that does not grow and does not generate jobs.
Thanks
I thank the Orizaba Technological Institute for providing the tools and human capital to develop professionally and the MAE Fernando Aguirre y Hernández professor of the Fundamentals of Administrative Engineering subject for promoting learning through practice among their students, thus encouraging proactivity and genuine learning.
References
CEMEFI. (October 15, 2016). CEMEFI.ORG. Obtained from CEMEFI.ORG:
www.cemefi.org/esr/images/stories/pdf/esr/confecto_esr.pdf
Galindo, DL (2014). Incorporating a Sustainable Essence. CSR Ideas, 48.
Herrera, E. (July 11, 2016). The Economist. Obtained from The Economist:
eleconomista.com.mx/industrias/2016/07/11/valores-pilares-rse
Download the original file
