Understanding Corporate Responsibility
Empire Group | February 19, 2021

In today’s business world, there are a lot of terms that are being thrown around, such as accountability and leadership, but they do not hold much value. However, a new term has been gaining attention over the past decade and has now become an important part of a company’s culture. It’s called corporate social responsibility (CSR). According to Investopedia, corporate social responsibility is a self-regulating business model that helps a company be socially responsible to itself, stakeholders and the public.
With the advent of social media, businesses are being held accountable for their practices. This accountability has developed into CSR initiatives. These initiatives are not meant to improve a company’s image, but to change how they operate to produce positive changes in society. They include making operations sustainable, donating money and products to charities, eliminating unethical practices, and volunteering for community events. These initiatives correlate to consumer loyalty and brand recognition. If a company is connected to a scandal, consumers will view the company negatively. An example of this is Goldman Sachs. They struggle to shed the disgrace of the 2008 financial crisis. Unlike Goldman Sachs, a company that has made strides with their CSR is Starbucks. Their coffee is 99% ethically sourced and have plans to reduce their environmental impact.
These companies are proof that CSR has a huge impact on consumer spending and trust. A study done by Cone Communications revealed that over 60% of Americans hope companies will drive social and environmental change moving forward. And nearly 90% will purchase a product because the company advocated for an issue they cared about. However, over 75% will refuse to purchase a company’s product upon learning it supported an issue contrary to their beliefs.
Corporate social responsibility has changed the way companies do business. At Empire Group, we strive to be socially responsible. We believe in helping our community in any way we can, including making donations to charities and businesses. To learn more about us, please visit our website.






