Today we consider organizations as entities that contribute to the development and maintenance of the social environment, through the activities they carry out in the various existing sectors and through their commitment to the population in general. In this way, companies today are no longer considered as simple economic actors, but, given the new environment in which we operate, they are also seen as important and influential social actors in economic and social stability, local and global.
Thus, within the current context, companies have gained special relevance as protagonists, not only in terms of sales volumes and profits, but also in the exploitation and use of natural resources, in their influence in the public and political sphere, as well as in social stabilization, among many other fields of action that reveal its importance. Thus, in addition to generating profits for their partners and shareholders, organizations must take into account that their actions have a positive or negative impact on the quality of life of their employees and the communities in which they carry out their operations and in which they market. your products or services.
That is why, when addressing matters concerning corporate social responsibility, it is essential to consider that said philosophy implies the promotion of positive modifications in the way of conducting and developing, both of individuals and organizations, causing changes in their organizational culture more than in the structures that compose them, that is, a strong commitment to social welfare is required.
On the other hand, in today's globalized markets with greater sensitivity and uncertainty, as well as the high competitiveness observed, it encourages companies to search for mechanisms of differentiation and sustained growth. For this reason, a growing number of companies have considered corporate or corporate social responsibility as a new way of managing and doing business.
What is Corporate Social Responsibility?
Corporate social responsibility is defined by (Javier, 2014) as the voluntary integration of social and environmental concerns in commercial operations and in relations with the different areas of influence of the company.
Thus, today, organizations ensure that their operations are sustainablein the economic, social and environmental aspects, recognizing the interests of the different groups with which they are related and seeking the preservation of the environment and the improvement of the quality of life of future generations. Therefore, CSR It is considered as a business vision that integrates respect for people, ethical values, the community and the environment with the management of the company itself, regardless of the products or services it offers or the sector to which it belongs.
In addition, this business vision must be supported by the values expressed by the company and must be reflected in a comprehensive set of policies, practices and programs throughout all its operations. Otherwise, organizations may find themselves at risk of implementing practices that, although they are socially responsible, as they are not part of an entrenched organizational culture, are susceptible to being suspended in the event of any contingency, financial crisis or changes in the company's management.
On the other hand, corporate social responsibility is a term that deals with an ethical commitment in the management of organizations and covers those responsibilities that the company assumes before society or its interest groups (stakeholders), either because it is required by law, because they are part of its function, or because the organization assumes it voluntarily. (Inversión & Finanzas.com, 2013)
Finally, another of the definitions of CSRindicates its basis as the commitment that a company assumes to contribute to sustainable economic development through collaboration with its employees, their families, the local community and society, in order to improve the quality of life. (Cajiga, sf)
Stakeholders (Enríquez, 2014)
In this sense, it is the company in general and not only the entrepreneur, who has a role before society and the environment in which it operates, obtaining from the guideline of doing profitable businesses, developed ethically and based on legality; a strategy that generates important advantages:
Greater productivity: Through better conditions for the internal customer that leads to better talent retention and therefore lower turnover rates.
Customer loyalty: Through the satisfaction of their needs and demands, starting with providing quality products and services at an attractive price, as well as a place where they can transmit their needs and complaints; and where you can easily obtain information on production conditions, product certifications, among others.
Market access: Derived from compliance with standards and certifications required by external actors, including consumers.
Credibility: Since the company that is respectful of people, communities, the environment and society as a whole, projects a reputation that guarantees greater sustainability over time, anticipating situations that may affect the company, and reacted with greater agility for adaptation. (Cruz, 2013)
Social responsibility and its activities have to be voluntary and go beyond legal obligations, but in harmony with the law, and thus contribute to the development of the country by maximizing economic, social and environmental benefits. However, social responsibility should not be confused with altruistic, ethical or environmental practices exclusively, but should be a practice from a systemic perspective that is an integral part of business strategies.
CSR Stakeholders
As individuals, we bear our own responsibility to take care of our environment in all the aspects that this implies, whether from environmental issues to respect for established ethical and social standards. However, organizations, as a set of individuals grouped by a common goal, not only have the same responsibility, but also have a great capacity for social influence that today has laid the foundations that guide business practices, converting the organizational culture in the fundamental pillar for the planning of its operations. (Cajiga, sf)
In this context, we can see that successful companies with a CSR philosophy demand to operate in a society in which not only adequate education, health and work conditions exist, but also have scenarios that guarantee the safety of their consumers. Thus, these successful companies obtain an increase in the demand for their products and / or services and therefore collaborate in the economic and social growth of the communities in the countries where they celebrate and carry out their operations.
On the other hand, society also needs and demands companies that generate jobs and income and that offer beneficial products and / or services to improve the quality of life of its stakeholders.
But what is the relationship between social responsibility and these interest groups or stakeholders? In this regard, as we well know, organizations interrelate with the society in which they are located by having links with a group of people or organizations of interest, which, as mentioned, can be in the economic, political, social and environmental fields. Therefore, considering the sustainability, development and permanence of an organization, it is essential to consider the role that stakeholders play in this regard. Since a good or bad decision that impacts the well-being of a stakeholder of the institution, can generate good results and therefore success; or on the contrary, make an organization fail and even disappear. (Guioteca, 2014)
Within this framework, it is of the utmost importance that companies and institutions have perfectly identified, defined and prioritized each of the stakeholders that cause an impact, whether positive or negative, in their operations; with the purpose of generating strategies that allow effective communication and management of all interest groups, thus allowing mutual development.
(Rivera & Malaver, 2011), in their research document entitled "The organization: stakeholders and social responsibility" state that, initially, companies focus entirely on generating wealth for their owners, regardless of their responsibility towards the other stakeholders. However, society was in charge of demanding compliance with said commitment, when one of the first manifestations of questioning of organizations by an interest group was presented in the so-called “labor movement” that emerged in England at the time. of the industrial revolution, in order to enforce the rights of workers and guarantee their well-being. Achieving then that the pressures exerted by the labor sector,They will force companies to start worrying about meeting the basic needs of their employees in addition to the financial requirements of their shareholders. However, the changes did not arise only as a result of the workers' social mobilization, but also in the face of the conditions that prevailed in the market. Since, in the period between 1800 and 1930, the supply, which until then had been less than the demand and which forced the customer to consume only what was offered, began to be equated; causing efforts to be focused on the study and understanding of consumer behavior; since now people required products and services according to their needs.The changes do not arise only as a result of the workers' social mobilization, but also in view of the conditions that prevailed in the market. Since, in the period between 1800 and 1930, the supply, which until that moment had been lower than the demand and which forced the customer to consume only what was offered, began to be equated; causing efforts to be focused on the study and understanding of consumer behavior; since now people required products and services according to their needs.The changes do not arise only as a result of the workers' social mobilization, but also in view of the conditions that prevailed in the market. Since, in the period between 1800 and 1930, the supply, which until then had been less than the demand and which forced the customer to consume only what was offered, began to be equated; causing efforts to be focused on the study and understanding of consumer behavior; since now people required products and services according to their needs.causing efforts to focus on the study and understanding of consumer behavior; since now people required products and services according to their needs.causing efforts to be focused on the study and understanding of consumer behavior; since now people required products and services according to their needs.
Therefore, it was in the mid-twentieth century that the company understood the importance of satisfying the needs of its customers, its workers and shareholders; when the concern of other interest groups arose for concepts such as sustainability and care for the environment.
It is then that according to (Cajiga, nd), interest groups or stakeholders can be classified as follows:
Consubstantial interest groups: They are those without which the very existence of the company would be impossible; for example, investors and associates with financial interests.
Contractual stakeholders: They are those with whom the company has some kind of formal contract; for example, suppliers and customers or consumers, by virtue of their business relationship; And managers and collaborators, by virtue of their employment relationship.
Contextual interest groups: They are those that play a fundamental role in achieving the necessary credibility for companies, and ultimately, in accepting their activities or license to operate; for example, governmental and legislative authorities, by virtue of the regulatory and legal environment; social organizations and communities in which the company operates, by virtue of its public image and moral credibility; competitors, by virtue of the market environment; and the environment, by virtue of the sustainability of present and future resources.
Interest groups for the company (Rivera & Malaver, 2011)
The strength of corporate social responsibility in organizations comes from the action of its aligned, conscious, organized and active stakeholders; Guided by a participatory, shared and plural leadership that builds an empowering organizational culture, open to changes and sensitive to social processes. Therefore, an organization trained in this context, to act in its reference market, has a greater chance of success.
Therefore, recognition of the deep-rooted organizational culture and dialogue with stakeholders are the two key aspects for the implementation, development and consolidation of CSR in companies. And, in addition, its implementation entails activities to measure and report its impacts on the environment, demanding accountability and transparency. (Ortiz, 2012)
Organizational culture and corporate social responsibility
It is common to observe that currently a greater number of companies are aware that they can contribute to sustainable development by directing their operations to the promotion of social responsibility within their organizational culture. This being precisely one of the fundamental pillars for organizations that seek to be competitive.
In this case (Robbins, 2004), he affirms that organizational culture refers to a system of meanings shared among its members and that distinguishes one organization from another, through the set of beliefs and values shared by the members of the organization. Thus, culture is characterized because it conditions the behavior of the organization, making rational many attitudes that unite its members, conditioning their way of thinking, feeling and acting.
Likewise, (Chiavenato, 2000) presents the organizational culture as a way of life, a system of beliefs and values, an accepted form of interaction and typical relationships of a certain organization.
In this way, it can be concluded that organizational culture is everything that identifies one organization and differentiates it from another, through values, beliefs, rules, procedures, norms, etc. that its members share and exercise. Therefore, organizations have their own culture, that is, a system of shared beliefs and values to which the human element that makes them adheres.
For this reason, in the corporate and industrial environment, we can find traditional or innovative companies, flexible or rigid, friendly or unpleasant; but always, supported by a belief system that determines their actions. For example, if an organization firmly believes in CSR as a management practice, it is most likely to form part of its planning and guide its action in the variety of situations and contexts that are presented to it. (Ten, 2007)
Business ethics
One of the bases of the organizational culture and corporate social responsibility is undoubtedly ethics, since it affects values and decision-making for the management of companies, and therefore reflects its impact on groups. of interest when perceiving the consequences that their actions generate in their sphere of action.
In this sense, an organization that operates in a responsible manner tends to increase its effectiveness and efficiency in terms of service and production, and consequently, increases its performance. Thus, as an organization oriented towards CSR and ethics is more profitable, it raises the standard of living of its employees and of society in general. (Ten, 2007)
Therefore, in the face of such references, when speaking of social responsibility it is necessary to consider the ethical performance of organizations. Well, its ethical performance must be reflected in all the actions that are carried out, in the daily operations that are carried out, and in the work of all the people who make it up.
In this way, then, it is sought that ethics form an integral part of the organizational culture, regulated through a code that includes the values and principles of each institution; that fosters respect for its collaborators and human rights, that fosters a positive organizational climate; to collaborate in caring for the environment and directly supporting the community in which it is located; among many other applications, such as accountability and transparency.
Ethics, Laws and CSR
(Diez, 2007) cites the authors (Jones & George, 2006), who for the understanding of CSR or CSR, identify a continuum that goes, from the obstructionist approach to the proactive approach in organizations:
Obstructionist approach: It consists in that companies and their managers do not assume CSR and act in an unethical way and, illegally, do everything possible not to inform the organization's stakeholders of their behavior.
Defensive approach: It is one in which the company and the managers behave in an ethical manner to the extent that they strictly obey the legal requirements, that is, their CSR is limited to complying only with what the legislation dictates.
Accommodative approach: According to which companies and their managers have a legal and ethical behavior, and try to establish a balance between their interests, make decisions that seem reasonable to society and do the right thing when the situation demands it.
Proactive approach: It is located at the top of the continuum, because companies actively adopt responsible behavior, do more than is necessary to meet the needs of the community and its stakeholders, and have the resources to meet those needs.
In addition to the above, business ethics can simply manifest itself, for example, by providing a product or service with high levels of quality that effectively satisfy consumer needs at a fair price. That is why it is said that, in every sense, the organization must demonstrate ethical behavior that guides decision-making and its relationships with others, without losing sight of the objectives it has in the business field.
Thus, social responsibility will then be the result of both the ethical conscience of the people and the organizations that practice it.
Social responsibility in SMEs
Obliging through a regulation to carry out activities in support of communities, sports, cultural and / or educational expressions, the generation of scholarships or aid, cannot be considered as a genuine expression of social responsibility, it is simply compliance with the requirement legislative, of the tax action of the law whose disrespect will generate sanctions. Carrying out all of the above, just because the law requires it, does not lead to developing a socially responsible organization.
The company will show true organizational maturity when, regardless of the norm, it seeks expressions that facilitate the development, growth and well-being of those who make it up and those who make up its environment. (Socorro, 2009)
Therefore, social responsibility is an intangible pact that reaffirms the commitment between the organization and its public and, as a secondary effect, encourages customer loyalty to the company. Of course, this has been understood by the world's leading organizations, which, finding great benefits in this philosophy, have incorporated corporate social responsibility into their business strategy as a differentiating element and as a competitive advantage, with positive financial results. Thus, more and more studies carried out in different parts of the world, verify the positive correlation between economic and financial results and the socially responsible behavior of the company.
(Cajiga, sf)
However, the erroneous view that social responsibility is only a matter for large corporations, since it requires large economic investments, is one of the main obstacles for small and medium-sized companies to consider implementing actions corresponding to CSR, such as part of its operations.
Therefore, considering the data issued by the Ministry of Economy; In Mexico, of the four million companies that exist, 99% represent micro, small and medium-sized companies, which generate a workforce of 72% and contribute 52% of the country's gross domestic product. Hence, then, the need to find effective mechanisms for the inclusion of SMEs in an environment that encourages their development and success. (Pro México: Investment and Trade, 2014)
Unfortunately, for many small and medium-sized companies in Mexico, CSR is a completely unknown, distant or exclusive topic for large corporations. However, SMEs can incorporate CSR into their management, after defining their sphere of influence and the decisions and activities that it can control, that is, through plans and actions aligned to the core activities of the company that ensure their permanence and directed to your closest stakeholders. (Reyes, 2016)
For example, through the integration of benefits to its employees and their families, or by focusing on activities that allow them to see results in the short term, such as eco-efficiency projects, where an adequate use of resources is promoted. to achieve the least negative environmental impact, which also reports economic benefits with lower operating costs or even observing a higher utility. In this way, over time, expand the scope of CSR within the organization, but never reactively but systematically. Since generally the initial connection of SMEs with the CSR ideology has been in the social aspect, implementing isolated activities, without a strategy that guides the actions of the company and that roots an innovative essence in its organizational culture. (Reyes, 2016)
In summary, the development of CSR measures in the management systems of SMEs must incorporate a systemic vision of processes and continuous improvement, as a fundamental part of its strategy to make the company grow and achieve a competitive advantage. Since, as already mentioned, public opinion today expects companies to be part of a positive change in society, contributing in a sustainable way to the development of communities; And since SMEs are the largest business force in Mexico, they should not be left behind in the implementation of strategies that allow them to obtain greater benefits compared to their competition.
conclusion
CSR provides real and tangible benefits for companies, which can be measured in different ways, both quantitative and qualitative, however, the reality is that until now, its implementation has been more influenced by the image and prestige that organizations seek to externalize in his performance, that out of a need for change and sincere solidarity with society and the environment.
However, the evolution in the management of organizations, going from the coordination and control of activities through vertical structures and operational divisions with authority relationships, to a more open concept, horizontal managerial direction and flexible operations, has also allowed, modify the social and ethical role of companies according to the needs and the appropriate context, according to the requirements of society.
In this vein, corporate social responsibility has begun to occupy an important space in public and social relations, so that transparency in the actions of companies and the clarity and veracity of their information on this issue will be relevant factors for generate and attract better profits in a globalized economy.
References
- Cajiga, F. (sf). The concept of corporate social responsibility. México, DF: Mexican Center for Philanthropy, Chiavenato, I. (2000). Human resources management. Cruz, R. (May 28, 2013). School of Industrial Organization. Obtained from http://www.eoi.es/blogs/mintecon/2013/05/28/responsabilidad-social-empresarial-rse-3/Diez, E. (2007). Culture and social responsibility: strategic binomial in organizations. Management Vision, 231 - 244.Enríquez, L. (November 19, 2014). CSR planning. Obtained from http://planeacionrsc.blogspot.mx/2014/11/stakeholders-o-groups-de-interes.html Guioteca. (January 23, 2014). Obtained from https://www.guioteca.com/rse/que-sonlos-stakeholders-y-por-que-son-importrantes/ Inversión & Finanzas.com. (October 24, 2013). Obtained from http: //www.finanzas.com / aula-shareista / 20131024 / responsability-social-corporate2526954.html Javier, D. (May 06, 2014). World Confederation of Businesses (WORLDCOB). What is CSR? Houston, Texas, USA: WORLDCOB.
- Jones, G., & George, J. (2006). Contemporary administration. Mexico, DF: McGraw-Hill.
- Ortiz, R. (2012). School of managers and social entrepreneurs (egesocial). Obtained from http://www.escuelaegesocial.es/index.php/blog/92-los-stakeholders-como-centro-deaccion-de-la-rse Pro México: Inversión y Comercio. (2014). Obtained from http://www.promexico.gob.mx/negocios-internacionales/pymes-eslabon-fundamentalpara-el-crecimiento-en-mexico.htmlReyes, J. (January 05, 2016). max. Obtained from http://elempresario.mx/management-mrkt/responsabilidad-social-empresarial-pymesRivera, H., & Malaver, M. (2011). The organization: stakeholders and social responsibility. Bogotá DC: Universidad del Rosario Robbins, S. (2004). Organizational behavior. México, DF: Prentice-Hall. Socorro, F. (December 28, 2009). From management.com. Obtained from
Thanks
Special thanks to the research professor Fernando Aguirre y Hernández, professor of the master's degree in administrative engineering attached to the Orizaba Technological Institute, for the technical contribution to the construction of this article and its direction in the process of learning systemic thinking. Likewise, to the National Council of Science and Technology (Conacyt) dedicated to promoting and stimulating the development of science and technology in Mexico, for financial support for postgraduate studies.
Sustainable: It refers to something that can be sustained or defended with reasons.
CSR: Corporate Social Responsibility.
Stakeholders: Word in English that, in the business world, means 'interested' or 'interested party', and that refers to all those people or organizations affected by the activities and decisions of a company.
CSR: Corporate Social Responsibility.
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