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Chapter 2 CSR and community

relations

2.1 CSR and community relations – THE CONCEPT

As recalled by the European Commission in its Green Paper on CSR, corporate social responsibility is also
about the integration of companies to their local environments. On the one hand, companies contribute
to local communities by providing jobs, paying wages and taxes. On the other hand, they depend on the
health, stability, legal reliability and prosperity of the communities and societies in which they operate.
They also profit from the local market, especially SMEs that mostly rely on the clients of surrounding areas.

Being involved in community development contributes to the accumulation of social capital. In addition,
the knowledge of local traditions can even create new businesses related and help companies to specialize
building on their local strengths.

Community relations is nowadays a strategic aspect of business and a fundamental ingredient the
sustainability of companies. Increasing social pressure is transforming the relationship between companies
and communities. The reputation of a company and its image as an employer and producer contributing to
its local community can certainly boost its competitiveness.

You can make a commitment to the community in two manners: (1) through employment and
recruitment policies by attracting and retaining top employees respecting diversity and inclusion
engagements (2) through direct social engagement in the community which in turn gives a positive
visibility to the company among customers improving its position in the market.

A positive and proactive connection to the community can translate into more value for your company and
even more market share and a successful business plan.

2.2 CSR, community building and community involvement

CSR is closely related to the concept of community relations and community support especially
community development, promoting diversity, fostering inclusion (link to module) and philanthropy
efforts (link to module).

External pressures, risk mitigation and official compliance triggered most businesses to adopt more
responsible practices and support innovative efforts to promote human rights and improve communities. 1

1 https://www.greenbiz.com/article/connection-between-diversity-inclusion-and-corporate-responsibility