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What Is Corporate Social Responsibility And Why Is It Important?

Understanding the connection between sustainability and business is vital for today’s company leaders but how does this relate to corporate social responsibility?

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Tue Apr 25 2023

BusinessBecause
Long gone are the days where sustainability issues in business were only of concern to people in environmental roles.

As climate change accelerates, so does the demand for greater knowledge around sustainable and ethical business practices.

This is where corporate social responsibility, or CSR, comes in. It’s a term you’ve likely heard, but while it used to be a fringe activity for many companies, it’s now central to modern business strategy. 

We spoke to an expert from ESSEC Business School to ask: what is corporate social responsibility and why is it important?


What is corporate social responsibility?

The definition of corporate social responsibility can vary but there’s a common theme underlying the term.

David Sluss (pictured) is a management professor at ESSEC and designs and teaches classes on CSR and leadership for MBA and business school students. He’s also the academic director of the ESSEC Global MBA program. 

He says that, in short, corporate social responsibility is a business’ concern for society—whether this be from an ecological, socio-economic, or employment standpoint.

“The term CSR used to be seen as separate to traditional business topics but now we’re aware that it’s endemic to everything and every organization,” he says.

In other words, how a business makes money has a knock-on effect on society—and the world. 


The importance of corporate social responsibility 

Since CSR is a way of understanding how a business impacts upon society, its importance cannot be understated.

In terms of why everyone should be interested in CSR, David has some wise words.

“It’s almost like asking: why should anyone care about society?” he says, “our world is one big collective endeavor—businesses do not live in a vacuum.”

There are many issues that businesses have the capabilities and the competencies to help solve, collectively, and even individually, he adds.

For instance, corporate social responsibility initiatives are necessary to improve the circular economy, which is an economic system that minimizes waste through reducing and reusing materials and products. 


Examples of corporate social responsibility led companies

Corporate social responsibility can seem like an abstract concept, which is why it’s easier to look at examples of companies that perform well at corporate social responsibility.

One example of CSR at a company’s core is at the outdoor clothing brand, Patagonia.

The company pledges its commitment to CSR in several ways. 34% of Patagonia’s apparel assembly factories pay workers a living wage on average, it offers a lifelong guarantee to try to repair products that consumers buy, and creates many of its products using environmentally friendly fabrics.

“Patagonia products are for people who love the outdoors and want to enjoy nature, so their commitment to sustainability is circular as the company wants to then protect the nature their consumers love,” David says.

He adds that business schools have a responsibility to teach students that by aligning your company's output to benefit society, you’ll have a strategic impact that can benefit the business in turn. 

“It’s about perpetuating your market,” he says. 

This is why business school programs such as the Global MBA at ESSEC embed sustainability teachings into their entire curriculum, with courses such as Sustainability for the Common Good, Sustainable Marketing, and Sustainable Finance.

Learning about these issues at ESSEC’s campus in Paris is also a major benefit to students. In the French capital, they’re at the heart of governmental and policy decisions related to climate change, and the country ranks fourth in the Global Sustainability Index.

The city is where the international climate change treaty, the Paris Agreement was brokered, and in 2019, France pledged to become carbon-neutral by 2050. 


The business benefits of corporate social responsibility

Most organizations and companies have a brand identity—whether good or bad. 

Patagonia is a great example of building a brand identity that lives its values, which helps to build a loyal customer base, too.

With an increasingly savvy younger generation, particularly the ecologically-minded Generation-Z, companies need to work hard to align their brand image with sustainable values—or risk failure.

“CSR needs to be part of a company’s brand identity and it must create products with CSR features infused—otherwise, they run the risk of losing out with consumers and the market.”

A company’s reputation and bottom line are at stake, as well as society at large.


What corporate social responsibility jobs are out there?

As CSR is about how business impacts society, there are numerous roles with a focus on it.

In the consulting sector—one of the most popular sought-after areas for business school grads—there are opportunities for sustainability consultants. These specialist consultants work with clients to enhance their CSR practices.

There are also many sustainability roles in marketing, such as sustainable marketing manager.

In finance there’s a growing demand for talent well-versed in Environmental, Social, and Governance (ESG) measures.

At ESSEC Business School, there are also many sustainability-driven startups that are supported by the school’s entrepreneurship incubator.

One such ESSEC-born startup is a sustainable makeup and beauty brand with circular values at its heart.

“Before these students were even graduating, they had interest from investors,” David says.


How can business schools create leaders in CSR?

Business schools play a vital role in shaping the CSR-driven leaders of the future.

“In the modern tech economy, almost every country in the world is run as a market economy. This means businesses run these economies,” David says.

Business school grads need to be ready to navigate modern and emerging organizations through the advent of climate change, he says.

Aside from several sustainability-focused courses, and sustainability teachings throughout the ESSEC Global MBA curriculum, there are also opportunities for students to get involved in hands-on projects.

Previous projects have seen MBA students work with a large UK-based international charity, focusing on how to encourage and support activists.

Other projects might involve working with a company to solve an issue such as reducing the impact of local tourism.

“These projects help grads enter jobs in which they use their business skills to solve societal issues,” David says.

Since organizations around the world are making big changes and pledges to meet sustainability goals, the demand for talented CSR leaders is only going to increase.

To be ahead of this change, business school grads will need to combine their understanding of climate change with their managerial and leadership acumen. Joining a top MBA program that teaches how these areas intersect can help you put corporate social responsibility at the heart of your career.


BB Insights explores the latest research and trends from the business school classroom, drawing on the expertise of world-leading professors to inspire and inform current and future leaders.

Student Reviews

ESSEC Business School

Student

Verified

5/12/2023

On Campus

The best intercultural university

There are more than 50 nationality in the grade, so there are opportunities to interact with people from all around the world. In terms of academics, the BBA course offers diverse courses for the 1st

Student

Verified

6/04/2022

On Campus

Creativity, adaptability and entrepreneurship

The Master in Management program at the ESSEC Business School allows the students to choose their courses accordingly to their preferences and their professional targets. We can also go through international exchange and take part in internships with companies that are also partners with the school. The school is also next to the city of Paris.

Prithwiraj

Verified

17/11/2021

On Campus

Top business school in France

Doing PhD in essec took some time, to be precise about five years. But the experience was very good and cost effective too. There are opportunities for the student for teaching assistantship and that helps both financially and in career. In the final year I could manage to teach marketing to M1 students and this helped shape my career

Student

Verified

30/10/2021

On Campus

Great college

The program is well suited for early professionals with an engineering degree preferably or a degree in economics. I would suggest taking the ceasure irrespective of the experience level as it helps you take your time to adjust to the job market.

Student

Verified

30/10/2021

Blended

Good school in France

I am currently enrolled in M2 in Essec business school. I am specialising in marketing management. The Grande Ecole programme is valued in France and my school ranks very high up. There are a lot of opportunities for internships and CDD.

Student

Verified

9/02/2020

The program curriculum

BBA program. The program is really practical and useful, provide us many international opportunities. Like internship and humanitarian experience, and the flexibility is also really cool, we can choose different campus and tracks as we want.

Véronique

Verified

11/12/2019

International Course

This school is very international and business oriented. Highly recognized by the companies The campus has been renovated and is very functional and modern from now on. Excellent atmosphere. Reputation of essec is a plus

kevin

Verified

11/11/2019

Friends, Career opportunities.

The program I did gave me the opportunity to start in Singapore. I got the chance to know all the students that started there and we bonded and made some friends for life. The career opportunities that ESSEC also gave me were unbelievable.

Student

Verified

25/09/2019

Practical and useful

I think the best thing about Essec is that it's not focusing on academics rather it emphasizes on future job mindset and professional experiences.. The classes are interesting and we have plenty of workshops attributing to different sectors.. The campus is very nice with a good cafe and wonderful library. The only problem is the location of the campus. It's quite far from Paris.

Kartik

Verified

14/02/2024

On Campus

Amazing experience! Must try

I think its a very amazing school with great and experienced faculty. Also the alumni network is very solid and useful. The school has a great balance of studies and work experience which is really essential for a student.