The Classic Examples Of CSR Innovations In Business Finance

CSR and innovations go hand in hand, as these forms the source of business competencies. Innovations in CSR can be viewed as a process of social improvement strategy, as companies with good CSR policies are able to tackle issues such as climate changes, pollution, poverty, and social justice effectively.

The Need to Innovate Corporate Social Responsibility

Innovations in CSR should be analyzed as an opportunity for the organization to:

  • Govern the business operations

  • Achieve organizational objectives

  • Add value to businesses

  • Address stakeholder interests

  • Evaluate business impacts

  • Monitor organizational financial performance

The different types of CSR innovations presently existing in the market include:

  1. Corporate Social Innovation – This refers to product innovation, which arises out of new product development that is created to address a social purpose.

  2. Eco-Innovation – This refers to both product innovation and process innovation, which results in new and sustainable environmental development.

Some examples of industrial CSR innovations include:

  1. Inviting stakeholders for CSR innovations – Certain organizations have provided an opportunity to engage with their consumers by seeking improved and innovative solutions in the manufacturing side of a business. Stakeholders are encouraged to submit ideas that are worthy of being classified as innovative CSR initiatives.

  2. Involving stakeholders to be a part of the business operations – Some organizations such as in a logistics or transportation allow customers to track their product movement so that customers can easily locate the information that they require. This has led to a transparency in business operations.

  3. Identifying the source of the paper manufactured – CSR allows customers to be aware of the source of the paper that they have purchased, thus enabling an open communication channel to impart sustainability. Additionally, customers are also provided with the information that describes the environmental effects contributed by each product, its water utilization rate, amount of pollution caused, amount of waste generated, and amount of energy utilized. This provides an opportunity for customers to be environmentally responsible.

  4. Practicing the concept of Buy & Donate – Several companies have launched a very innovative CSR drive whereby they call out to customers to buy their product. The motivation here lies in the fact that for every product purchased, another will be donated to those in need. For example, buying a pair of spectacles will result in the generation of a free pair to someone in need but cannot afford it. Another example includes customers buying any educational material and a percentage of the profit being donated to educating the illiterate.