CSR and Environmental Responsibility Eco-friendly Practices

Abstract

This chapter discusses the importance of corporate social responsibility (CSR) on the sustainability of the environment with the application of eco-friendly practices. The incorporation of CSR in the company activities enables the company to apply ethical practices that achieve economic, social, and environmental sustainability. CSR with eco-friendly activities improves the economy and sustains the environment. The discussion, therefore, is based on how CSR eco-friendly practices contribute positively to the environment and the community in achieving the three sustainable pillars: economic, social, and environmental factors. The methodology used was a semi-systematic review, which used a narrative review approach for topics designed from CSR and environmental responsibility eco-friendly practices main topic from literature written by different groups of researchers within the diverse discipline of CSR. Through some global companies discussed in the chapter, it is known that companies implementing sustainable CSR formulate the policy according to the nature of their ethical and environmental impact and have different strategies for achieving their goals according to their respective environmental impacts. The discussion also found that many organizations globally are implementing CSR to achieve economic, environmental, and social aspects. However, there is a lack of a holistic approach in the implementation of CSR activities and CSR strategic planning.

1. Introduction

Corporate social responsibility (CSR) requires companies to do business in an ethical manner and to be responsible to employees, customers, and stakeholders when doing business and contribute to society and social issues [1]. When companies conduct their activities, their activities release particles and gases into the air, water, and soil, many of which have a negative impact on the environment. Companies need to consider the community and environment in which they operate [1]. It is when the concept of CSR is needed to provide support to the community and ethical behavior in business for the company’s activities to be done in an ethical manner by using eco-friendly practices. Although the purpose of establishing a company is to generate profit, the company has an obligation to protect the environment and consider social factors. The conceptual underpinning of CSR emanates from a profound concern for human welfare and places explicit emphasis on the social dimensions of business activities, which intricately interconnect with the overall quality of life in society.

Corporate responsibility, within the CSR framework, encapsulates the ethical and societal obligations of companies, delineating their responsibilities toward society in terms of how they address social and ethical concerns, incorporating social and environmental considerations into their business operations, and managing their interactions with stakeholders [2]. The manifestation of CSR practices by companies signifies not only a commitment to the moral and ethical conduct of their operations but also an acknowledgment of responsibilities toward customers, suppliers, employees, shareholders, and society at large, transcending the sole pursuit of profit. Despite the myriad benefits that accrue to companies implementing CSR practices [3], managers engaged in such endeavors encounter challenges during decision-making processes, including the identification of pertinent social issues, selection of initiatives aligned with those issues, development and implementation of comprehensive plans for projects, and the evaluation of outcomes [4].

The decision-making process assumes paramount significance in the CSR landscape, serving as the pivotal stage wherein initiatives are adopted, therefore, managers are advised to conduct a strategic plan for CSR activities during the planning stage to align the resources/competencies and the opportunities identified within the external environment to ultimately lead to higher levels of performance [5]. Strategic planning needs to consider community service, corporate philanthropy, corporate social marketing, and environmental issues [1]. It is imperative to recognize that CSR is a voluntary undertaking, wherein companies integrate social and environmental considerations into core business strategies and operations while adhering to ethical and legal obligations in their interactions with stakeholders [6].

1.1 Chapter overview

This chapter, therefore, highlights the corporate social responsibility theoretical background and the methodology that led to the development of the chapter. The chapter further explains CSR’s positive perspectives and progress and the benefits of CSR philanthropic responsibilities. The chapter also explains the importance of the involvement of employees in the implementation of CSR practices and the relationship between CSR, green shared vision and green human resource management and green innovation and green marketing. Eco-friendly practices by some companies through CSR have been explained by citing five international companies narrating about their similarities and differences in the implementation of their eco-friendly practices. The chapter further explains the strategic implementation and strategic planning of CSR. Finally, the chapter discusses the implications of the study’s findings by the chapter through literature review.

1.2 Corporate social responsibility theoretical background

Corporate social responsibility, which is also referred to as corporate citizenship or conscious capitalism, has become one of the major contributors to environmental conservation [7]. There is a positive relationship between corporate social responsibility and corporate governance. Well-administered corporate governance improves corporate environmental performance; in addition, it is also responsible for activities that emerge with negative impacts on the environment [8]. Research proves that corporate environmental performance enhances performance organization’s good performance [9]. Nowadays, organizations are taking a leading role in recognizing the significance of environmental sustainability [10]. In this regard, organizations globally are embracing green efforts to educate employees, customers, and stakeholders about the increasing environmental degradation and climate change [11]. The paradigm shift of organizations to a green approach has gained much attention and has changed organizations from human resource management to human capital management that focuses on selecting, recruiting, and training employees to accomplish green goals [12] equipping employees with environmental responsibility. The green human resource management (GHRM) motive enables employees to understand the outcome of green activities [11]. According to Snyder [13], the implementation of corporate social responsibility by organizations increases economic, environmental, and social impacts because CSR considers corporate accountability, stakeholders, legitimacy, corporate sustainability, political issues, and justice.

1.3 Methodology

This chapter writing is focused on CSR and environmental responsibility eco-friendly practices with a narrative review approach for topics designed from CSR and environmental responsibility eco-friendly practices [14]. The partial aim is to highlight the significance of ethical and eco-friendly practices in the implementation of productive CSR in order to promote environmental protection innovation and the company’s economic value. For the purpose of this chapter, CSR literature from various authors has been used to unveil the importance of the application of ethical and eco-friendly practices in the implementation of CSR by companies. The methodology was used to find out the relevance of the implementation of CSR to the environment and eco-friendly practices.

2. Corporate social responsibility implementation model, perspective, and philanthropic responsibilities

This section discusses positive perspectives and progress of CSR, benefits of CSR philanthropic responsibilities, involvement of employees in CSR implementation, CSR green shared vision and green human resource management, green innovation, and green marketing.

2.1 Corporate social responsibility: positive perspectives and progress

The roots of corporate social responsibility (CSR) can be traced back to the 1930s when deliberations commenced regarding the social obligations of the business sector toward the community [15]. However, it was not until 1952 that Bowen introduced the formal concept of CSR to the global business sector [16]. The 1980s marked a pivotal shift, with CSR evolving into a more business-centric concept, as noted by Hoffmann et al. [17]. Initially, companies implemented CSR primarily to maximize profits, often neglecting the social and environmental dimensions of their operations [18]. However, a paradigm shift in the business mindset transformed the implementation of CSR, emphasizing the dual objective of economic benefits for businesses and the imperative to consider the improved conditions of customers, stakeholders, and the environment throughout business operations [19].

Dmytriyev [19] urges companies to forge relationships with a wide array of stakeholders and should look beyond strategic self-interest and short-term profits, as their behaviors can have an effect on local communities and the natural environment [19]. Camilleri [20] expounds that stakeholders may have different needs and expectations, as illustrated in Figure 1. Positive expectations bring economic improvement to the company.

Figure 1.

Stakeholder demands and expectations. Adapted from: (Camilleri [20], p. 6).

In contemporary business operations, CSR has emerged as a strategic tool providing companies with competitive advantages and yielding positive economic outcomes. Consequently, CSR has garnered attention from industry practitioners, policymakers, and researchers in the field of management [21]. The World Business Council for Sustainable Development (WBCSD), serving as a catalyst for change toward sustainable development, asserts that CSR contributes to economic development while simultaneously enhancing the quality of life for employees, their families, and the broader community and society [22].

Gutterman [23] advocates corporate companies to incorporate CSR into their policies, emphasizing the prioritization of the protection of people, communities, and the natural environment. This advocacy stems from the understanding that CSR practices uphold ethical values and demonstrate respect for people, communities, and the environment, all while companies continue to generate profits. Gutterman’s encouragement aligns with a sustainable paradigm that underscores the importance of addressing current needs without compromising the well-being of future generations [24]. Similarly, Nagaty [25] encourages companies to focus on the triple-bottom-line—comprising economic development, environmental conservation, and social improvements—while Boccia and Sarnacchiaro [26] affirm that companies can create value for all stakeholders through CSR initiatives.

The triple-bottom-line represents a shift from an old to a new paradigm, where traditional CSR approaches aimed at achieving singular dimensions [27]. In contrast, the contemporary implementation encompasses all dimensions to achieve sustainability. Each dimension within this new paradigm reflects implicit corporate ambitions, as elucidated in Table 1. The table explains that each of the dimensions in the old and new paradigms reflects implicit corporate ambition. This explains that the approach to the implementation of CSR is different from the old paradigm, the new paradigm is for sustainability.

Dimension	Old Paradigm	New Paradigm
Markets	Compliance	Competition
Values	Hard (economic figures)	Soft (additional values)
Communication	Closed (internal)	Open (wider stakeholder analysis)
Partnerships	Subvention	Symbiosis (win-win)
Life cycle technology	Focused on products	Focused on functions
Time	Wide	Longer
Corporate governance	Exclusive	Inclusive

Table 1.

Seven areas of transition.

Adapted from: (Mark-Herbert et al. [27], p. 2).

The shift of seven areas: markets, values, communication, partnerships, life cycle technology, time, and corporate governance is evident through changes in the concept of CSR, in the business and political world Sustainable Development Agenda adopted at the UN Conference on Environment and Development in Rio de Janeiro in 1992 and the Sustainable Development Agenda adopted at the World Summit in Johannesburg in 2002 [28]. Now sustainable development is recognized as a cornerstone of corporate social responsibility [29]. Navickas et al. [28] argue that CSR focus is more on corporate business models and the concept of sustainable development on key changes in the global environment.

2.2 Benefits of CSR philanthropic responsibilities

Corporate social responsibility (CSR) assumes a transformative role in affecting positive societal change through philanthropic initiatives, utilizing resources derived from company profits. The integration of CSR with philanthropy positions CSR as a crucial facet within the business sector’s public perception. CSR engenders a symbiotic relationship, establishing interdependence between the company and the community. Acting as a bridge, CSR fosters connectivity between the business entity and the non-profit sector, exemplified by the community. Embracing a philanthropic approach not only motivates the community but also serves as a testament to the company’s social influence, positive public image, and commitment to societal well-being [30]. In this light, companies must cultivate trust, project a positive reputation, and nurture robust relationships with employees, communities, targeted customers, and other stakeholders [31]. Implementing CSR with a focus on philanthropic responsibilities becomes a means for companies to acquire social influence.

Carroll [32] spurs companies to engage in community service and philanthropic activities that improve the quality of life in the areas they operate. Liu et al. [33] argue that companies need to implement environmental philanthropy in CSR practices because philanthropic activities are reinforced by business dividends articulated in the form of environmental corporate social responsibilities. However, philanthropy is the most optional and discretionary aspect of corporate social responsibility and has not always been related to bringing losses to companies or firms. Besides, Fedotova et al. [34] assert that companies engage in environmental philanthropic initiatives to gain a positive image, corporate trust, and enhance reputation, which yields a competitive advantage to the company. Eshra and Beshir [35] confirm that philanthropic actions are mutually beneficial for businesses and the communities in which the companies operate. However, Abbas and Dogan [36] and Allui and Pinto [37] support that companies that prioritize CSR with philanthropic activities gain a positive impact on their sustainable performance. On the contrary, Nagaty [25] eludes that some companies’ philanthropic responsibilities come as the last priority, which is not good. Mataruka et al. explain that philanthropic CSR cannot work, it needs to be incorporated with other CSR elements. The company needs to align with social, economic, and environmental investments when markets and demand expand, creating stakeholder value [38]. The study conducted by Mataruka et al. [39] addresses the mediating role of the philanthropic dimension of CSR in the relationship between other corporate practices and sustainable practices in Zimbabwe’s service-based firm sector, the result suggested that philanthropy is the mediator in the connection between the CSR dimensions of economic, ethical, and environmental responsibilities and the study emphasizes that relying solely on philanthropy is not adequate to maintain sustainability.

2.3 Involvement of employees in CSR implementation

Employees, as internal stakeholders, play a pivotal role in enhancing organizational productivity through active engagement in CSR activities [40]. Serving as key implementers, employees contribute significantly to sustainable practices by reducing waste, sharing information, and participating in the design of new products. Companies, such as Shangri-La hotels and resorts in the National Capital Region of India, exemplify the commitment to CSR by initiating campaigns under the umbrella brand of “Sustainability,” addressing key CSR areas, including environment, health and safety, employees, and the supply chain [41].

2.3.1 CSR, green shared vision and green human resource management

Nowadays, companies are encouraged to initiate green initiatives to produce eco-friendly products and services, which are less harmful to the environment because customers are motivated to buy high prices for eco-friendly products and services. For this reason, it is of great importance that companies need motivated employees to achieve their green objectives [42]. This can be achieved if companies adopt green policies in their green shared vision that will initiate the implementation of socially responsible activities to gain society’s and stakeholders’ attention. Yang et al. [42] posit that green shared vision and green human resource management (GHRM) practices are strategies that prompt all members to adopt green behavior in their own capacities. According to Sharabati [43], literature found that the positive relation of CSR to employees in maintaining the engagement, enthusiasm attitude as well as behavior concerning in workplace the environment, and green shared vision is an approach that encourages each member to undertake environmentally friendly practices in their individual capacity in the workplace. GHRM ensures that companies effectually adopt more ecologically sound practices since it raises employees’ environmental consciousness because employees develop green customer citizenship behavior [44]. Arguably, results indicate that employees who share a green vision embrace sustainable behaviors [45]. Yang et al. [44] argue that both CSR and GSV have a significant impact on voluntary green work behavior (VGWB) in an organization. For example, green customer citizenship behavior for hotel employees includes recycling, choosing environmentally friendly products, and supporting environmentally responsible hotels [46] that have benefits like the reduction of operating costs by conserving resources, the attraction of environmentally conscious customers willing to pay a premium for sustainable practices and enhancement of company’s responsible businesses [47].

2.4 Corporate social responsibility triple-bottom-line-approach, green innovation, and green market

This section discusses the CSR triple-bottom-line-approach contribution to environmental responsibility eco-friendly practices, green innovation and green market for CSR eco-friendly practices, eco-friendly practices by companies through CSR, strategic implementation for CSR, and environmental responsibility eco-friendly practices.

2.5 CSR triple-bottom-line-approach contribution to environmental responsibility eco-friendly practices

Corporate social responsibility (CSR) adopts a triple-bottom-line (TBL) approach, integrating economic, environmental, and social values to manage sustainable corporate conduct. Initially conceptualized by John Elkington in 1994, the TBL approach seeks to balance these three imperatives, aligning with the economic, social, and environmental responsibilities denoted as profit, people, and planet [48]. The TBL approach transcends traditional corporate models, emphasizing the importance of managing corporate conduct holistically [49]. By achieving a balance between economic, environmental, and social imperatives, the TBL approach ensures a comprehensive fulfillment of CSR responsibilities [50]. This multifaceted approach is essential for fostering sustainability, with economic prosperity, social equity, and environmental responsibility intertwined to achieve corporate objectives [49].

2.5.1 Green innovation and green market for CSR eco-friendly practices

Various internal factors, such as green innovation (GI) and green market (GM), have been noted to impact the implementation of corporate social responsibility (CSR) and sustainability, as evidenced by previous researchers [51].

2.5.1.1 Green innovation

Green innovation is a means of creating new processes and using technologies that implement new and unique ideas to minimize negative environmental impacts, such as carbon footprint and pollution [52]. GI consists of green technological practices, such as green product, process, managerial, and marketing innovation and the execution of green human resource management practices, which include green training and development, administrative support and culture, recruitment and selection, compensation, and benefits [53]. GI is directly linked to CSR and sustainability due to its aspect of environmental protection [54, 55]. Go-green is an initiative practiced by organizations to do away with eco-friendly problems. GI is practiced in green products, green marketing, green processes, and green management. GI processes are meant for an eco-friendly environment, decreasing consumption of energy and lean production processes, controlling pollution emission and waste recycling, improving the performance of the organization, and providing a pollution-free environment to society at large scale [56].

A study conducted by Ilvitskaya and Prihodko [57] explains that GI includes technology, managerial, and organizational innovations that help to sustain the surrounding environment. In addition, the study conducted by Fernando et al. [58] showed that GI, regulation, supplier intervention, and technology have a strong influence on sustainable performance mediated by service innovation capabilities.

It is therefore important for companies to use green innovation practices. However, it may be difficult to implement GI practices because of difficulties in developing green technologies due to other barriers [59]. In addition, the implementation of GI requires researchers to assess the impact of various policy frameworks on environmental sustainability initiatives that needs time and resources [60]. Importantly, there is a need for a comprehensive SWOT study to understand consumer behaviors and attitudes toward green products and services because consumer choices play is paramount in shaping market demand for sustainable alternatives [61].

The implementation of CSR sustainable practices often leverages green innovation strategies. Green innovation involves the production of environmentally friendly products using sustainable materials and adhering to ecological product design principles. The application of green innovation attracts a green market, as the emphasis on environmentally responsible products aligns with consumer demands and expectations [54, 62]. Green marketing, characterized by environmentally friendly operations and services, extends beyond production methods to include consumption, disposal practices, and ethical business decisions [63]. Companies adopting green marketing not only reduce negative environmental consequences but also enhance customer health and welfare, contributing to the development of a positive corporate reputation [64].

2.5.1.2 Green marketing

According to Deshmukh and Tare [65], green marketing (GM) refers to the encouragement and an effort to pursue the selling of environmentally friendly goods and services. Therefore, GM is a strategy used by companies to create and promote goods and services that are environmentally friendly and sustainable and do not have any adverse effects on the environment [65]. The positive effects of GM on the environment are products such as low carbon footprint, energy efficiency, and recyclable nature of products.

There is a significant relationship between CSR and GM in today’s business environment [65]. Nowadays, customers are very sensitive to the goods and services that they use since they know that the bad products are harmful to them personally or their environment. As such, companies make sure that their products take proactive measures to address social and environmental issues [66]. Nowadays, customers have grown more environmentally conscious, favoring eco-friendly products, and perceiving socially responsible buying behavior as more appropriate. This is because green marketing and eco-friendly activities are becoming more popular as a strategic endeavor in companies’ production process. Therefore, companies face the challenge of being more environmentally friendly [64] to meet customer’s and consumer’s needs. In addition to satisfying customer needs, green marketing considers the environment and promotes corporate social responsibility [67]. The company’s competitive advantage can be complemented by green marketing and CSR through the company’s reputation and brand image [65]. Research has revealed that adoption of sustainable practices results in cost savings, reduction in resource usage, and long-term business resilience [68].

2.6 Green marketing and CSR practices: Challenges and criticisms

In response to the global appeal to companies on the implementation of sustainability and social responsibility, many companies use green marketing and CSR strategies in order to satisfy stakeholders and consumers who are environmentally sensitive [65]. However, the companies meet challenges in the implementation of green marketing such as greenwashing, experiencing problems in balancing sustainability and profitability goals, and issues with regulation and industry standards [65]. Greenwashing is deceiving customers into thinking that a company’s goods or services are more environmentally or socially responsible or friendly than they actually are [69]. This is the reason why the government must have monitoring bodies to assess pro-environmental behavior in the context of close business or one industry [69]. Another challenge is the strive to balance between a company’s profitability and sustainability objectives when companies implement CSR practices [65].

3. Eco-friendly practices by companies through CSR

Companies are ethically obligated to adopt fair and environmentally responsible practices in their CSR activities. This involves a consideration of major environmental CSR components, such as waste and emission elimination, maximization of energy efficiency, and the reduction of practices detrimental to natural resources [70]. Eco-friendly practices encompass proper packaging materials, clean energy usage, and the incorporation of sustainable materials in construction.

Companies, while seeking to maximize profits, often contribute to environmental degradation through resource exploitation and pollution. Excavation of rocks, release of industrial effluents, and the use of fossil fuels emit pollutants that adversely affect the environment. CSR practices are instrumental in mitigating the adverse impacts of non-environmentally friendly practices, with companies increasingly integrating environmental considerations into all facets of their operations [70]. CSR factors, such as the formulation of corporate environmental policies, environmental audits, employee involvement, procurement of sustainable materials, and the use of environmentally friendly processes, are pivotal in addressing the environmental impact of company activities [71].

To ensure the success of eco-friendly practices in the supply chain, companies adhere to CSR green requirements. This involves selecting green suppliers who provide sustainable materials that meet environmental protection standards. Implementing CSR supply chain practices that prioritize environmental and eco-friendly considerations not only reduces environmental harm but also satisfies the green preferences of customers, enhancing profit-making opportunities [71].

The adoption of CSR practices, specifically those emphasizing eco-friendly approaches, is crucial in safeguarding the environment, reducing production costs, and minimizing waste [72]. Companies that prioritize CSR activities not only build a positive reputation but also contribute to global efforts in environmental conservation and sustainable development [73].

Udomphoch and Pormsila [74] conducted a study of corporate social responsibility in Thailand on packaging and communicated CSR to evaluate consumer buying decisions using the packaging from coconut fibrin. The company used local material (coconut fibrin) for green packaging, which creates jobs in the community by making paper and packaging from coconut fibrin. The production process is environmentally friendly. Corn starch paper has performed under alkaline conditions coupling a mixture of natural additives consisting of carboxymethyl cellulose and corn starch. The company’s effort of using local waste material (coconut fibrin) for green packaging is beneficial to the environment and job creation in the community by making paper and packaging from coconut fibrin pleased the community and consumers were delighted to buy the packaging.

3.1 Examples of international companies that use green market practices

Supekova and Szwajca [75] conducted a study in Slovak Republic, they highlighted the significance of green marketing in the modern business and economy and its importance in the future as well. The study involved three companies: Panasonic, DELL, and Samsung.

3.1.1 Panasonic

Panasonic is one of the largest electronic company in Slovakia. It invested in the production automation process, mainly in the manufacturing of loudspeakers. The company concentrates on the increase of the Energy Star brand level as well as components used in divisions. Panasonic through its manufacturing process proves that eco-friendly electronics can be manufactured massively with a minimal loss on process performances with more than 300 Energy Star products. The company improved its manufacturing process in waste recycling through green innovation and in 2013 the company’s factory waste recycling achieved a rate of 99.3%. The company uses lean production because it uses recycled plastic waste in its product manufacturing process. In order to control energy use, the company established its own power and water-saving function. Furthermore, the company ensures that home products are power and water-consumption friendly, using intelligent technologies to save consumption and be more ecologically effective. Although the company uses principles of green marketing are widely implemented in the production process and investment to change the appliances to be eco-friendly and power-efficient.

3.1.2 DELL

DELL company sells personal computers (PCs), servers, printers, and other electronic equipment. In terms of green marketing, the company focuses mostly on delivery, packaging, and shipping. The company has a policy called “3Cs”–cube–content–curb. The policy focuses on the package box itself, the product that is being packaged and the way how the product and box itself could be recycled. The company manages to decrease the waste production among the company itself and for the customers through the policy. Based on the policy achieves in the reduction of box sizes, transportation of more products at one time, and reduction in waste. Importantly, the production process is environmentally and eco-friendly because it uses natural materials in their packages, such as bamboo cushions or straw initiative. On the contrary, Slovak consumers may not be clear on green innovation and green market, since the company’s activities are mostly focused on foreign consumers and green marketing activities.

3.1.3 Samsung

Samsung is a manufacturer of electronic equipment such as LCD and LED panels mobile phones, digital cinema screens, and laptops. The company is a global leader in carbon management. Slovakia-based LED panel factory in Voderady (SDSK) introduced technologies that reduce gases from LCD screens. The objective was to significantly reduce CO₂ production during the manufacturing process, as well as using the products. The effort made it possible to reduce Greenhouse Gas (GHG) emissions per sale by 20% from the 2017 levels and expanded eco-friendly products in their portfolio. The products are packed into recyclable and eco-friendly packages that can be reused or recycled. For example, ecological refrigerators are being packed into polypropylene packages that can be used more than 40 times instead of paper and polystyrene. However, KPMG survey [76] argues that CSR principles and actions applied in the manufacturing processes in the world’s 250 largest companies are not unified and hard to compare.

Unilever: Unilever is a company that uses agricultural raw materials such as palm oil, soy, and tea, from sustainable sources. The company’s stand on its “Sustainable Agriculture Code” (ethical sourcing and sustainable processing) of businesses encourages farmers to adopt eco-friendly practices [65].

Nestlé: Nestlé is the world’s leading nutrition, health, and wellness company. Nestlé emphasizes on the ethical sourcing of important goods such as cocoa and coffee. Using “Nestlé Cocoa Plan” and the “Nescafé Plan” the company encourages sustainable cultivation and conservation of natural resources such as farmers adopting regenerative practices and more than 15% of Nestlé key ingredients are grown in more regenerative ways [77]. In 2023, reduction of emissions was reduced by 33.19% due to the increase of renewable energy established in manufacturing facilities that were combined with energy efficiency measures [78].

Green marketing, characterized by environmentally friendly operations and services, extends beyond production methods to include consumption, disposal practices, and ethical business decisions [63]. Companies adopting green marketing not only reduce negative environmental consequences but also enhance customer health and welfare, contributing to the development of a positive corporate reputation [64]. In the supply chain, companies embrace CSR green requirements to implement eco-friendly practices, choosing sustainable suppliers and materials to reduce environmental harm and increase profitability [71].

3.2 Comparison and contrast of companies on eco-friendly practices

Companies that implement CSR have the same goal when using eco-friendly practices in their operations and production of their products. In this regard, companies are there to meet social activities in their operations. Marijana et al. [79] state that social activities, as a rule are useful and are there to achieve certain social goals. The similarity of companies in their ambition of using eco-friendly practices is that each company develops a policy according to their nature of ethical and environmental impact in order to achieve their sustainable objective. The contrast is observed when the companies want to achieve their objectives. The companies target areas that affect their environment, customers, consumers, or society. For example, Panasonic concentrates on the increase of Energy Star brand level in order to control energy use, DELL focuses mostly on sustainability practices on delivery, packaging, and shipping, Samsung concentrates on the reduction of gases from LCD screens, Unilever is a company that focuses at ethical sourcing and sustainable processing while Nestlé, which is a world’s leading nutrition, health and wellness company, encourages sustainable cultivation and conservation of natural resources.

3.3 Strategic implementation of CSR and environmental responsibility eco-friendly practices

The implementation of corporate social responsibility (CSR) is a multifaceted process governed by several critical factors, such as accountability, transparency, ethical behavior, stakeholder consideration, legality, human rights, and adherence to international standards, rooted in the stakeholder theory [80]. Scholars like Chiappetta et al. [81] underscore the importance of integrating CSR practices into the planning phase of company projects or operations. Emphasizing the significance of strategic implementation, [13] asserts that a well-designed and strategic approach is essential for achieving positive CSR outcomes. Consequently, the implementation of CSR demands a strategically-steered approach, ensuring systematic, efficient, effective, and practical management of CSR initiatives [82].

However, considerations of strategy choice in CSR implementation are contingent upon the size and structure of the company and its targeted objectives, as argued by Fet et al. [82]. For effective implementation, Maccarrone and Contri [83] advocate for the integration of CSR into the strategic management processes of an organization. The integrated management system (IMS), as presented by Anholonet et al. [80], serves as a framework for integrating individual management systems that address stakeholder needs and requirements [13]. The adoption of an IMS aligns company objectives uniquely, facilitating effective management [84].

Proposing a systematic approach to CSR strategy implementation, Fet and Knudson [82] introduced a four-step model that can be adapted for companies of varying sizes. The model encompasses (1) CSR planning, (2) CSR analysis, (3) CSR plan of action, and (4) CSR implementation. This four-step model offers a systemic guide for companies to formulate initial CSR strategy plans, analyze pertinent values and aspects to be incorporated, decide on the operationalization of aspects, and execute the implementation process. Fet and Knudson [82] contend that this model provides a structured framework that enables companies to monitor and enhance CSR activities systematically, ensuring adaptability to diverse organizational contexts (Figure 2).

Figure 2.

Systematic approach to implement CSR strategies in a company. Source: (Fet and Knudson [82], p. 126).

3.4 Strategic planning in corporate social responsibility

The effectiveness of corporate social responsibility (CSR) initiatives hinges on sustainable planning and management that incorporates social and environmental dimensions to mitigate the carbon footprint, as asserted by Chiappetta et al. [81]. Acknowledging the pivotal role of well-planned strategies, Fet and Knudson [82] underscore that a meticulously crafted CSR strategy significantly enhances the successful implementation of CSR activities. In line with this perspective, Heikkurinen [85] introduced the concept of strategic corporate social responsibility (SCSR), signifying a deliberate integration of CSR within an overarching strategic framework [85].

Companies of varying sizes and across diverse industries are increasingly championing CSR in their operations. Notably, research indicates a growing recognition among companies regarding the imperative of integrating CSR into their business models to ensure productivity, competitiveness, and relevance in the swiftly evolving global business landscape [86]. Despite this widespread adoption of CSR, substantial variations persist in the planning and implementation of CSR activities across companies and the global spectrum.

By emphasizing a holistic approach, the planning of CSR activities must be seamlessly integrated into a company’s strategic planning and core operations. This integration is crucial to ensuring that the company aligns with the interests of stakeholders and maximizes economic and social value through sustainable means [87]. The planning and analysis stages, as highlighted by Latapí et al. [14], play a pivotal role in projecting how a company implements its CSR strategy, emphasizing the need for foresight and meticulous examination in the formulation and execution of CSR plans. Although many organizations and companies are implementing CSR, they do not approach CSR holistically and they lack strategic planning before the implementation.

3.5 Implications of the study’s findings

The chapter provides valuable insights for policymakers, companies, businessmen, and stakeholders interested in promoting the implementation of successful and meaningful CSR that is environmentally responsible by using eco-friendly practices in their activities. It encourages the companies to improve CSR regulation to guarantee companies adhere to ethical standards that efficiently address environmental issues by not just focusing on the economic benefits of their companies. It also encourages the companies to use eco-friendly practices in order to invest in sustainable technology in the implementation of CSR in order to promote environmental protection and innovation, at the same time making economic benefits. The chapter also provides examples of some global reputable companies that implement ethical and eco-friendly practices that other companies can borrow a leaf. Bashir et al. [88] assert that companies need to utilize green/eco-friendly initiatives because it is as an effective CSR tool to gain a competitive advantage because they reflect a favorable picture of the company and demonstrate the company’s ability toward society.

4. Conclusion

This chapter discussed the importance of CSR on the sustainability of the environment with the application of eco-friendly practices. Corporate social responsibility is a widely adopted and implemented concept in companies around the world. For this reason, companies need to implement CSR in an ethical manner through the use of eco-friendly practices. Companies produce waste during the production of products and offering services. Therefore, using ethical and eco-friendly practices with CSR minimizes environmental degradation. Eco-friendly practices bring a competitive advantage to companies. The use of ethical and eco-friendly practices results in a low carbon footprint, energy efficiency, and recyclable nature of products. For CSR to be effective, employees must be well trained in order to be acquainted with green shared vision, which will assist them in the implementation of ethical and eco-friendly voluntarily. CSR strategic planning and implementation of CSR activities will result in effective CSR that brings sustainability to the environment and community.