The Future of Corporate Social Responsibility

By Sam Imende 

January 2011

Corporate social responsibility (CSR) is proving to be an effective mechanism in mitigating the exploitive nature of capitalism. There is a perception that CSR consists of charitable jesters used to improve the corporate image of a company. While there is certainly a charitable component of many CSR projects generating a measure of good will for companies, CSR has become a more integral system of changing corporate culture to be in sync with the societies and ecosystems around them. This integrated approach to CSR is being redefined as 'sustainability' to capture how management factors social, environmental and economic issues into their decisions and corporate culture.

Companies have various motives for pursing sustainability besides moral inclinations. They could be facing increasing pressure from stakeholders and environmental agencies, or they could be driven by market opportunities to reach a growing base of conscious consumers.  More recently Consortium corporate partners across various industries such as Walmart, Nike, Inc. and The Proctor & Gamble Company have made commitments to sustainable practices which are streamlining environmental and social concerns into mainstream corporate culture. 

Currently there are wide variances in levels of sustainability and environmental certifications.  Certifications, such as the LEED building certification, will be important in setting benchmarks for sustainability. There has been a major debate in the U.S. between the public and private sector on emission controls to reduce carbon dioxide levels.

The U.S. is one of the highest carbon dioxide emitters, which undermines its ability to champion climate-change initiatives in the global economy and challenge countries like China to follow suit. Members of the U.S. Senate were considering climate change legislation based on a cap-and-trade scheme that would limit carbon emissions and impose a carbon tax. 

However, the weak economy and tensions leading up to the mid-term elections has diverted political attention away from climate-change and left things in the hands of the Environmental Protection Agency (EPA). While this may put off legal pressure for companies to change, the movement towards corporate sustainability is becoming inevitable as the realities of climate-change become more and more apparent.