Top 5 CSR Trends of 2021

Corporate Social Responsibility (CSR) in itself is a major trend in the business landscape. Earlier, social responsibility was limited to enterprises, with companies like Google and Microsoft leading the way. However, as the social and environmental impact has become essential for customers, startups and small businesses are developing CSR strategies. 

Several new trends are reshaping CSR in 2021. Let’s look at the top five trends.

Green Technology

Industries are the biggest contributor to pollution of all kinds. As awareness of environment-friendliness continues to increase, several companies are adopting green technology to either reduce their environmental impact or outset it. 

For instance, fashion companies are reducing water usage and harmful chemicals. They are also adopting alternative fabrics made from eucalyptus or recycled plastic. Other steps taken by companies to go green are:

• Use renewable energy
• Working remotely to reduce office emissions
• Going paper-free
• Tracking and reducing energy consumption
• Selling products online 

Local Action by Global Companies

Localization has emerged as a major trend in the CSR space. Even companies that function on a global scale are realizing the value of local supply chains and markets and investing in them. This has numerous benefits for both the company and the local community.

Leveraging local talent and markets enable organizations to reduce their supply chain costs. It creates employment opportunities in the area, benefiting local communities. 

Increased Transparency

More and more customers are demanding that companies reveal how they do business. They want to know how companies source raw materials, the manufacturing and labor practices used, and their social and environmental impact. 

Therefore, supply chain transparency has emerged as a major CSR trend. This trend is more prominent among fashion brands. Top fashion companies like Reebok, Patagonia, H&M, and Adidas have adopted supply chain transparency practices. 

Diversity and Inclusion

Lack of economic equality and discrimination and burning issues of many political debates. Many companies have taken the initiative to eliminate discrimination at the workplace by ensuring equal pay for all genders, races, ethnicities, and age groups. 

Another step towards diversity and inclusion is hiring diverse workforces from various ethnicities. Some global companies embracing workforce diversity are Johnson & Johnson, Mastercard, Accenture, Coca-Cola, Marriott International, and Novartis. 

The Rise of CSR SMBs

Finally, CSR is not a concept limited to Fortune 500s like Google and Adidas. Social responsibility has become a key element of the business plan for startups. Some of the fastest-growing green startups in the world are:

• Fuergy
• Power Ledger
• Facedrive

Another trend growing alongside CSR startups is CSR investment. Enterprises are readily investing in CSR startups to become socially responsible. Since implementing CSR in existing business operations can be challenging for companies, they can outset their impact by funding green startups. 

Final Thoughts

Corporate social responsibility is reshaping the business space in many ways. As social and environmental responsibility has become an essential focus area for customers, organizations of all sizes and types are embracing CSR. New CSR trends are emerging regularly, and companies need to adapt accordingly. New startups must be aware of these trends so they can start their CSR journey on the right foot.