Corporate Social Responsibility, CSR

At best, corporate social responsibility means that the public sector, enterprises and other organisations act responsibly and together promote responsible conduct by all organisations. A responsible enterprise complies with legislation and other regulations. For instance, occupational health, product liability, change security and environmental legislation are closely related to responsibility, forming the basis of voluntary responsibility.

Moreover, a responsible enterprise exceeds the minimum requirements of legislation e.g. by investing in staff competence and wellbeing at work, by attending to the state of the environment, and by taking account of stakeholder groups' expectations. An enterprise and other work communities can gain sustainable benefits from activities that are economically, socially and ecologically responsible.

Furthermore, the concept of responsible competitiveness is applied. This concept entails the notion that ecological or social responsibility form an innovative part of a product, service or work organisation, for example. The enterprise competes in the market on the basis of normal rules, with its responsible products and services.

At best, the operating model for responsible competitiveness can enhance the competitiveness of an enterprise and generate a competitive advantage for it. For instance, responsible product or service innovations can be created by integrating technology in novel ways with products or services, or through organisational innovations – new types of partnerships with other enterprises or other stakeholder groups, or through enhancing employees’ opportunities to influence ways of working or product development.

By integrating social, ecological and economic responsibility voluntarily as a part of business, enterprises benefit, at least in the long term, as do all of their stakeholder groups. Responsibility also enhances mutual trust and the reputation of the organisation, such as the interest of young people in working for responsibly acting enterprises.

Concepts

Voluntary social responsibility exercised by enterprises, exceeding the requirements of legislation and of other regulations, is referred to under the following concepts among others: corporate social responsibility, responsible business, responsible entrepreneurship, sustainable development and corporate citizenship. The most common English term is 'Corporate Social Responsibility’, CSR, as applied by the European Union.

The Ministry of Employment and the Economy considers it vital that all groups in society – enterprises, other work communities, the public administration – pay attention to responsible operating methods that generate added value for citizens, enterprises and the whole of society. Moreover, the public authorities and administration as well as organisations can support the responsible acting and production methods of enterprises.

All of the aforementioned concepts refer to the same issue in the main, only the extent and depth of responsibility vary. For instance, the concept of ‘corporate citizenship’ entails the idea of enterprises contributing strongly to the alleviation of social problems.

Corporate Social Responsibility covers economic, social and ecological responsibility.