Corporate Responsibility

Corporate Responsibility is a strategic corporate initiative that consists of clearly articulated and communicated policies and practices, which reflect an organization’s business responsibility for wider societal good. Another way to think of CR is the voluntary actions companies take to promote positive effects of their operations on the community and environment through charitable or “green efforts.”

The Impact of Corporate Responsibility

Undertaking Corporate Responsibility efforts can benefit not only the organization, but also stakeholders and the communities in which the company operates. KRI research demonstrates that actively participating in CR efforts is related to higher employee engagement levels and more favorable views of senior management. Although favorability regarding an organization’s CR initiatives varies across industries and job types, employees’ views of their organization’s CR efforts positively affect personal outlook on the future, job satisfaction and confidence in the company’s future.

An organization’s CR efforts can extend beyond positive internal results. By creating a positive employment brand, an emotional tie between the employee and the community is established, which can increase an organization’s competitive advantage when hiring and retaining employees. As consumers have become more aware of positive corporate behavior, there is also the potential for organizations to continually earn respect and confidence from current and potential customers.