Corporate social responsibility

Corporate social responsibility

Companies are becoming increasingly aware of the need to operate in accordance with the principles of People-Planet-Profit. Consumers are becoming more emphatic in demanding this. They want products that they know for definite have been produced sustainably, without using underpaid labour in a distant country or raw materials that create pollution. 

Sustainability as a factor is increasingly carrying more weight, both in trade between businesses and consumers and in contact between the companies themselves. In addition to quality and price, sustainability is becoming a crucial sales argument. As a result, consumers and businesses are increasingly prepared to pay a premium for sustainable products and services.

Greensource South Africa

Support projects in practical terms and financially

As well as expressing their grasp of corporate social responsibility within the company, through innovative production processes, an increasing number of companies are also demonstrating this externally, by getting involved in (social) projects in developing areas.

Sometimes this is in practical terms, with equipment, machines or materials, such as a bakery that buys up old baking equipment and delivery bikes and converts them so they can be used in Africa as mobile bakeries. A much more frequent occurrence is for companies to support projects in financial terms, because their own field of operations does not overlap with the problems faced by developing countries, or because they do not have the knowledge and manpower to organise projects themselves. 

Companies in some countries, such as India, are now legally required to spend a minimum fixed percentage of their profit on social projects. But whether this is mandatory or not, corporate social responsibility is increasingly being promoted by companies — and thankfully through actions rather than just as lip service. 

Background TenCate Field in a Box