Corporate Social Responsibility (CSR): Evolution and the Triple Bottom Line

Posted on Apr 7, 2024 in Economy

What is CSR?

Corporate Social Responsibility (CSR) refers to voluntary practices and policies undertaken by corporations to positively impact the world. It encompasses a comprehensive management system that includes all functional areas of the company and responds to the evolving demands of the environment.

Three Main Responsibilities of CSR

  • Economic: Producing, generating wealth, paying fair wages, and contributing to tax revenue.
  • Social: Treating workers ethically, informing consumers, and respecting agreements.
  • Environmental: Respecting the environment, minimizing pollution and waste, and promoting eco-friendly products.

Evolution of CSR

The CSR movement has evolved over time:

  • 1950s-1960s: Concerns about the environment led to the emergence of NGOs and the concept of business ethics.
  • 1980s-1990s: Freedman introduced theories of social responsibility, and CSR became professionalized within marketing and communication departments.
  • 1990s: CSR departments were created, and the movement became transversal to the entire company.
  • 2000s: Millennium goals focused on addressing global issues like poverty, education, and equality.
  • 2015: Sustainable Development Goals (SDGs) were established in the Paris Agreements, providing specific solutions and a strategy (Agenda 2030).
  • 2018-2020: CSR became linked to the future of companies, emphasizing innovation for sustainability.

The Triple Bottom Line

CSR encompasses the Triple Bottom Line, a sustainable business strategy that positively impacts the environment and society while benefiting shareholders. It focuses on measuring social and environmental impact alongside financial performance.

Three Pillars of the Triple Bottom Line

  • Profit: Financial performance and shareholder value.
  • People: Societal impact, stakeholder engagement, and fair labor practices.
  • Planet: Positive environmental impact, reducing carbon footprint, and using sustainable materials.

Companies that adopt the Triple Bottom Line approach have demonstrated that it is possible to achieve financial success while making a positive contribution to society and the environment.