Corporate Social Responsibility: The Role of Companies in Building a Better World

Corporate Social Responsibility (CSR) has become more than just a noble goal. More than 80% of public and private companies surveyed by Morgan Stanley see potential financial opportunities aligned with sustainability goals, including 79% who say it will drive higher revenue.

At the same time, social responsibility plays a significant role in how companies are viewed. This impacts brand reputation, talent attraction, and the bottom line.

What is Corporate Social Responsibility?

CSR is the idea that businesses have a duty to act in ways that benefit society as a whole, not just their shareholders or owners. This can include a variety of activities, from environmental initiatives and fair labor practices to community engagement and ethical sourcing.

CSR initiatives demonstrate a company's commitment to ethical operations, environmental stewardship, and social equity.

CSR practices are making an impact on how consumers and investors make decisions about organizations. It’s important to your employees, too. SAP Concur’s 6th Annual Global Business Travelers Research Report showed that 27% of employees said they would decline a business trip due to the environmental impact of the travel or the inability to choose sustainable options.

Organizations that prioritize sustainable and ethical practices recognize this impact, producing several key benefits across multiple stakeholder groups:

• Consumers: Consumers are more likely to support businesses that demonstrate genuine care for social and environmental issues. They increasingly prefer brands that share their values and a visible CSR program can help differentiate your company from your competitors.
• Investors: Environmental, Social, and Governance (ESG) factors are commonly considered in investment decisions today.
• Employees: Employees want to work for companies that align with their values. When organizations prioritize CSR, employees often feel a greater sense of purpose, which can lead to increased job satisfaction and retention.

All of this contributes to what’s called the triple bottom line:

• People: Efforts to positively impact society
• Planet: Commitment to environmental responsibility
• Profit: Increasing financial gain

Speaking of the bottom line, a McKinsey study shows that top performers incorporating sustainable practices are more than twice as likely as their peers to grow revenue by more than 10%.

The key? Making sustainability an integral part of your business software strategy.

Despite these advantages, implementing CSR effectively presents challenges, including:

CSR initiatives often require financial investment, which may be a barrier for some companies. Balancing the costs of social initiatives with leadership and investor expectations can make it difficult to justify the expenses, especially in competitive industries.

More than a third (36%) of travel managers are finding it difficult to be successful in meeting company expectations for more sustainable travel options without adequate travel budgets. In fact, for about a quarter of business travelers (27%), their company has cut back on allowing them to pay more to use more sustainable travel options over the past 12 months.

Measuring the impact of sustainability efforts can be difficult. While financial returns are more straightforward to quantify, the effects of CSR initiatives on social and environmental factors are often less tangible. This can make it harder for companies to demonstrate the direct impact of their CSR activities.

Consumers are quick to detect insincere CSR efforts. Companies must ensure that their initiatives are genuinely aligned with their values and are not merely attempts at "greenwashing" — which can quickly damage your brand.

A commitment to authenticity and consistent action over time is essential to build trust.

CSR activities are also influenced by different local and international regulations, particularly in parts of the world like Europe, the Middle East, and Africa (EMEA). Navigating these regulations requires a deep understanding of legal frameworks and often involves ongoing audits and adjustments to stay compliant.

SAP Concur solutions can help you improve your CSR practices by promoting sustainable practices, enhancing transparency, and supporting ethical governance.

SAP Concur’s 6th Annual Global Business Travelers Research Report revealed that nearly a quarter (23%) of business travelers cite recommendations for reducing carbon emissions as a critical element for their company’s travel booking tool. Employees want to see the impact of each travel option before making a decision.

The new Concur Travel has achieved a significant milestone by becoming the first online booking tool to integrate emissions calculations assured to the new ISO 14083 standard. This development, made possible through our partnership with Thrust Carbon, marks a big step forward in providing accurate and consistent emissions data for customers at the point of booking. Organizations can now calculate emissions from their spend and itinerary data, analyze travel emissions, and set carbon budgets.

This becomes especially important as new regulations roll out, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and countries like Australia and Singapore adding mandatory reporting on Scope 3 emissions, including business travel.

By digitizing expense reporting and travel management, SAP Concur significantly reduces the need for paper. The platform enables business travelers to capture and store digital receipts, eliminating the need for physical documentation and reducing waste.

According to the Environmental Protection Agency (EPA), the pulp and paper industry accounted for 31.7 million metric tons of greenhouse gas emissions in the U.S. in 2023. A shift to digital spend management minimizes the carbon footprint associated with traditional paperwork and provides a streamlined way for you to contribute to a more sustainable future.

Enhancing Transparency and Compliance

With SAP Concur solutions, you get a clear, auditable trail of expenses and reporting to help ensure travel bookings and expense management align with your CSR principles.

You can integrate your CSR policies into the system, helping employees comply with ethical and regulatory standards. This alignment fosters responsible corporate governance and reinforces a culture of accountability.

SAP Concur provides tools for monitoring and analyzing travel data, including carbon emissions, empowering companies to make more environmentally conscious decisions.

Companies can dive deeper into data to gain insights into carbon emissions, top destinations, green suppliers, business traveler practices, and spending behaviors. With reports delivered directly to an inbox, program managers get a clear and accurate picture of their organization’s footprint, empowering them to take immediate action. Additionally, by analyzing patterns and trends, business leaders can make informed decisions to reduce non-essential travel and choose more sustainable transportation methods, proactively supporting CSR goals and reducing travel-related carbon emissions.

Robust reporting also makes it easier for you to document your CSR efforts for stakeholders, demonstrating progress toward meeting your sustainability goals. While CSR reporting is generally voluntary, some public companies disclose information to shareholders. For some jurisdictions, large organizations are also required to disclose social and environmental performance.

SAP Concur enables companies to seamlessly integrate CSR principles into their expense and travel management processes. By automating and digitizing these tasks, SAP Concur helps organizations reduce paper use, enhance transparency, and minimize their carbon footprint. With SAP Concur, you can achieve regulatory compliance and build a positive reputation for ethical governance and sustainable practices.