Introduction
Many businesses not only seek profits but also attempt to address social issues such as environmental and human rights issues because they believe they have a responsibility to society to improve it, which is known as CSR (Corporate Social Responsibility). Customers are particularly interested in their activities to address environmental issues and promote sustainability. As a result, this article contrasts a few examples from each company.
What is CSR?
Corporate Social Responsibility (CSR) is a type of self-regulation in which corporations have a responsibility to their stakeholders and society to make them a better place. Environmental responsibility, ethical responsibility, philanthropic responsibility, and financial responsibility are the four broad categories of CSR. Here’s how Fernando (2022) explains them:
Environmental responsibility: the goal of protecting nature through proper operations that leave resources in better condition for nature.
Ethical responsibility: acting fairly and morally, such as treating customers fairly (not judging based on their age, sexual orientation, or race)
Philanthropic responsibility: giving back to society through charitable activities
Financial responsibility: planning financial investments and donating to the above three categories (hiring a diverse workforce, educating workers about environmental standards, and conducting research for sustainable products)
Examples of actions
Starbucks
- Renewable energy is used in 66% of Starbucks locations worldwide. Furthermore, Starbucks will invest nearly 97 million dollars in a new solar project, which will provide solar energy to over 24,000 homes, small businesses, and colleges.
- Creating sustainable dairy products by investing, providing farmers with more effective ways to reduce environmental and financial impact, and converting food waste into low-carbon manure that farmers can reuse
- Using reusable cups: “Borrow-A-Cup,” or borrowing a cup from a store, is a test used in the United States, the United Kingdom, Singapore, and Japan. Customers are also encouraged to bring their own.
(Starbucks, 2021)
McDonald’s (Japan)
- Protecting the forest: using FSC-certified (forest-friendly) paper packaging, paper bottles, and paper tray liners to protect the environment in the forest
- Protecting marine resources: using only natural Alaska pollock from the certified sustainable and eco-friendly fishing industry
- Protecting tropical rainforests: using 100% coffee beans from certified farms because harvesting coffee tends to be affected by climate change and offers appropriate working conditions for employees
- Sourcing sustainable palm oil: using palm oil that has a minimum impact on its product area and rainforest since making it may cause the loss of rainforest and a variety of animals
(McDonald’s Company (Japan), Ltd., 2020)
TOYOTA
- Forest Project (Japan): Its object is to make healthy forests and use wood resources in Mie prefecture, Japan. Enhancing the forest with public-beneficial functions such as absorbing CO2 and recharging water resources
- Eco-tour for children (Turkey): Let children learn about the environment and its protection. They can see and try the manufacturing.
- Protecting animal habitats (United States): With NEEF (The National Environmental Education Foundation), Toyota (North America) has been collaborating to protect and restore the area of animal habits for more than 25 years. An example of an activity is being the sponsor of NEEF’s volunteer work, and employees have participated in it.
- Marine pollution prevention initiative (Colombia): It has been planting trees since 2018 to protect the local wildlife and water resources near Medellin and Bogota by cooperating with the local environmental group (Toyota Motor Corporation, n.d.).
GAP Inc.
GAP Inc. aims to use fibers that produce little CO2 and waste, require little water, and help to protect biodiversity. Furthermore, by 2025, it intends to obtain 100% cotton from a more sustainable source. The company developed the measuring standard to improve team decision-making and will support this activity to participate in the initiative with supply chain partners. It is also looking into alternative fossil fuels and sustainable agriculture.
- Natural fibers: The company obtains natural fibers in a variety of ways (such as cotton, linen, and animal fibers). Cotton, in particular, is a major component of all of the company’s brands, so it develops sustainable cotton provision for both the environment and people. Furthermore, risk assessment is used to identify countries with lower levels of employee rights.
- Synthetics are required, but they are nonrenewable. To address this issue, the company is developing low-impact fibers that can replace nylon and elastane, which are essential but have no substitutes (GAP Inc., n.d.).
References
Fernando, J. (2022). Corporate Social Responsibility (CSR) Explained With Examples. [online]. Available at: https://www.investopedia.com/terms/c/corp-social-responsibility.asp [Accessed 7 February 2023].
GAP Inc. (n.d.). Raw Materials And Product. [online]. Available at: https://www.gapinc.com/en-us/values/sustainability/enriching-communities/raw-materials-and-product [Accessed 9 February 2023].
McDonald’s Company (Japan), Ltd. (2020). McDonald’s CSR Report 2020. [PDF]. Available at: https://www.mcdonalds.co.jp/newcommon/csr2020/pdf/CSR2020_EN_All.pdf [Accessed 8 February 2023].
Starbucks. (2021). Global Environmental & Social Impact Report. [PDF]. Available at: https://stories.starbucks.com/uploads/2022/04/Starbucks-2021-Global-Environmental-and-Social-Impact-Report-1.pdf [Accessed 8 February 2023].
TOYOTA MOTOR CORPORATION. (n.d.). TOYOTA Social Contribution Activities. [PDF]. Available at: https://global.toyota/pages/global_toyota/sustainability/esg/social-contribution/social_cont_all_en_p.pdf [Accessed 9 February 2023].
