A 5-Minute History of CSR

Summary

This video script traces the evolution of Corporate Social Responsibility (CSR) from its early forms in the 1910s to the present day. Highlighting Howard Bowen as the father of modern CSR, it discusses the impact of historical events like World War II, the Cold War, and the Civil Rights Movement on CSR's development. The script also touches on the influence of government policy, the rise of digital awareness, and the UN's Sustainable Development Goals as a framework for CSR strategies, emphasizing the importance of collective action for a sustainable future.

Takeaways

• 📚 Howard Bowen is recognized as the father of modern CSR, coining the term in his 1953 book emphasizing policies aligned with societal objectives and values.
• 🌱 Early CSR initiatives were seen in the 1940s, with companies like Hormel contributing to social good through government programs during WWII.
• 🌐 The Cold War era shaped CSR as a means for businesses to align with defending free market capitalism against opposing ideologies.
• 📢 The 1960s civil rights movement influenced corporations to take social stances, exemplified by Coca-Cola's support for Dr. Martin Luther King Jr.
• 🏛 In the 1980s, President Reagan's small government policy placed social responsibility on corporate shoulders, prompting innovative CSR approaches like Newman's Own.
• 🌐 The digital age in the 1990s and 2000s increased global awareness, leading to CSR strategies addressing labor practices and human rights violations.
• 🌟 Post-9/11, President George H.W. Bush initiated 'Points of Light,' mainstreaming volunteerism and encouraging corporate social involvement.
• 🌿 Sustainability became a central theme in CSR by the 2010s, with climate change and environmental issues driving new CSR strategies.
• 🔄 The UN's Sustainable Development Goals (SDGs) offer a framework for CSR, with companies like IKEA investing heavily in renewable energy projects.
• 🔮 Looking ahead, the UN SDGs are expected to become the standard for CSR programs, guiding collective action towards a brighter future.

Q & A

Who is considered the father of modern CSR and what term did he coin?

Howard Bowen is widely regarded as the father of modern CSR, and he is credited with coining the term 'corporate social responsibility' in his 1953 book 'Social Responsibilities of the Businessman'.

What was the significance of the lend-lease program during World War II in terms of CSR?

The lend-lease program was significant for CSR as companies like Hormel worked closely with the government to provide much-needed food supplies for those affected by the war, showcasing early forms of corporate social responsibility.

How did the Cold War influence the evolution of CSR in the 1950s?

During the Cold War, CSR evolved into a form more familiar to what we see today, with corporate America urged to expand business social responsibility as a means of aligning business interests with the defense of free market capitalism.

What role did the civil rights movement play in shaping CSR during the 1960s?

The civil rights movement of the 1960s influenced CSR by making corporations take unprecedented social stances. For example, Coca-Cola's CEO, Jay Paul Austin, threatened to take his company out of Atlanta if the city's elite did not honor Dr. Martin Luther King Jr. for his Nobel Prize.

How did President Ronald Reagan's policies impact CSR strategy in the 1980s?

President Ronald Reagan's belief in small government led to social responsibility being placed back onto corporate America's shoulders, with many companies responding by developing their CSR strategies.

What was innovative about Newman's Own and how did it relate to CSR?

Newman's Own, started by Paul Newman in 1982, was innovative because it donated all of the company's after-tax profits to educational and charitable organizations, offering consumers the ability to participate in the company's philanthropic pursuits through their purchases.

How did the digital age and global issues influence CSR in the 1990s and 2000s?

The digital age brought greater awareness of global issues such as poor labor practices and human rights violations, which in turn influenced CSR strategies as companies had to respond to these concerns and demonstrate social responsibility on a global scale.

What was the Points of Light program and how did it relate to CSR?

The Points of Light program, founded by President George H.W. Bush, was a grassroots movement that brought volunteerism to the mainstream. It mobilized people to take action on causes they care about, integrating volunteerism as a part of CSR.

What is the significance of the UN's Sustainable Development Goals (SDGs) in modern CSR?

The UN's SDGs provide a standard framework that organizations can adopt to build CSR programs around, focusing on sustainability, climate change, and the environment, which have become defining issues in modern CSR strategies.

How has IKEA demonstrated its commitment to CSR through the UN SDGs?

IKEA has demonstrated its commitment to CSR by investing two billion dollars in renewable energy projects and intending to rely 100% on renewable energy by 2020, aligning with the UN SDGs' focus on sustainability.

What is the future outlook for CSR based on the UN SDGs?

The future outlook for CSR suggests that the UN SDGs will become the standard by which most, if not all, CSR programs are built, as more companies adopt the framework and focus on collective action towards a brighter future.