An Introduction to Corporate Social Responsibility

Corporate social responsibility—managing business processes to produce an overall positive effect on society—extends beyond a company's basic obligation to comply with law and work to increase profits. It can encompass and may exceed traditional corporate philanthropy. Corporate social responsibility is a set of policies, practices, and programs that are integrated into a staffing firm's business operations and decision-making processes.

A variety of terms are used, sometimes interchangeably, to refer to corporate social responsibility: business ethics, corporate citizenship, corporate accountability, sustainability. Essentially, they all describe companies' efforts to address ethical practices, employee-friendly policies, environmental impact, governance, human rights, and community engagement within the core functions of the business.

Corporate social responsibility affects more than just the companies that practice it. ASA immediate past chairman Linda Carchidi, CSP, says, "One of the greatest rewards of working in the staffing industry is the ability to make a real difference in the lives of others. I believe that our industry has an obligation to actively contribute to enhancing our communities and the lives of our employees."

According to research by the trade association Business for Social Responsibility, corporations report publicly on their corporate social responsibility activity to meet the demands of stakeholders and other interested individuals—such as employees, consumers, clients, suppliers, shareholders, lawmakers, and regulators—who are asking companies to be accountable not only for their own performance, but also for the effect of their products, the performance of their supply chain, and the well-being of their employees.

Corporate social responsibility efforts have increased in recent decades, BSR suggests, in part because companies and their investors have gained greater awareness of the risks they may face when they do not address corporate social responsibility-related issues and the benefits that may be possible when they do.

Corporate social responsibility initiatives can encompass policies, programs, or specific projects within companies and with external partners. The corporate social responsibility focus of a given company will vary by business, size, sector, and geography.