Corporate Social Responsibility (CSR) is, according to EU Communication 681 of 2011, “the responsibility of enterprises for the impacts they have on society”. Corporate Social Responsibility or Socially Responsible Business, again according to the European Union, means meeting the needs of the customer and at the same time managing the expectations of other stakeholders, such as staff, suppliers and the local community. The distinctive element of CSR is to combine economic responsibility with social responsibility, which creates tangible and intangible values for everything around the company. Winning values for the company, for people, for the territory and for the environment. Corporate social responsibility is a management concept whereby companies integrate social and environmental concerns into their business operations and interactions with stakeholders. CSR is generally understood as the way in which a company achieves a balance between economic, environmental and social imperatives (‘Triple-Bottom-Line- Approach’), while meeting shareholder and stakeholder expectations. In this sense, it is important to make a distinction between CSR, which can be a strategic business management concept, and charity, sponsorship or philanthropy. Although the latter can also make a valuable contribution to poverty reduction, directly enhance a company’s reputation and strengthen its brand, the concept of CSR clearly goes beyond this. Promoting the adoption of CSR among SMEs requires approaches that are adapted to the needs and capabilities of these enterprises and that do not adversely affect their economic viability. UNIDO has based its CSR programme on the Triple Bottom Line (TBL) approach, which has proven to be an effective tool for SMEs in developing countries to help them meet social and environmental standards without compromising their competitiveness. The TBL approach is used as a framework for measuring and reporting corporate performance against economic, social and environmental performance. It is an attempt to align private companies with the goal of global sustainable development by providing them with a more comprehensive set of business objectives than just profit. The perspective adopted is that, to be sustainable, an organisation must be financially secure, minimise (or ideally eliminate) its negative environmental impacts and act in accordance with society’s expectations. Key CSR topics: environmental management, eco-efficiency, responsible sourcing, stakeholder engagement, labour standards and conditions, employee and community relations, social equity, gender balance, human rights, good governance and anti-corruption measures. A properly implemented CSR concept can bring a number of competitive advantages, such as increased access to capital and markets, increased sales and profits, operating cost savings, improved productivity and quality, an efficient human resource base, improved brand image and reputation, increased customer loyalty, better decision-making and risk management processes.
