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Hamid-Mohammadi-Rafi

The Role of Corporate Social Responsibility and Its Importance in Organizations

Interview with Hamid Mohammadi Rafie; Deputy of Human Capital Development and Corporate Social Responsibility

 

  1. Please explain the role of corporate social responsibility and why it is important in organizations.

Corporate Social Responsibility (CSR) refers to a set of actions and strategies undertaken to create a positive impact on society and the environment alongside achieving economic and financial goals.

Today, operational or financial superiority alone cannot create a competitive advantage for companies, and organizations must also consider social and environmental issues and strive to achieve a competitive advantage in these areas. In fact, in today’s business world, even customers, along with other stakeholders, are sensitive to environmental and social issues and the responsibilities that organizations have in these areas as one of the members of society. The present era is a time when stakeholders expect companies and organizations to be responsible and consider future generations in their activities and operations. Organizations’ attention to future generations in conducting activities and consuming resources is a fundamental step towards achieving sustainable development in economic, social, and environmental terms and is indicative of the organization’s commitment to a sustainable global economy. In this regard, given the expansion of industries and the increase in the excessive consumption of natural resources, the production and emission of pollution resulting from human and industrial activities, preventing environmental degradation has become a top priority of government development programs.

In addition, the role of corporate social responsibility in organizations includes the following:

  • Strengthening reputation and credibility: Organizations that fulfill their social responsibilities generally have a higher reputation. This can help attract new customers and retain existing ones.
  • Attracting and retaining talent: Employees who value social and environmental values are more likely to work for organizations that are committed to their social responsibilities. This can increase job satisfaction and reduce turnover.
  • Increasing customer loyalty: Customers are increasingly interested in choosing brands that pay attention to social and environmental issues. This increases customer loyalty and commitment to the brand.
  • Reducing risks: Social responsibility policies can help identify and reduce risks related to social and environmental issues and prevent potential crises.
  • Sustainable development: By accepting social responsibilities, organizations can contribute to sustainable development and prevent environmental degradation.
  • Building partnerships with stakeholders: Social responsibilities help organizations collaborate with local communities, governments, and other stakeholders and establish more positive relationships.
  • Innovation and competition: Organizations that consider social responsibilities can pursue innovations that not only help improve processes and products but also lead to solving social problems.

Ultimately, social responsibilities benefit not only society but also organizations themselves, as they can serve as an effective competitive advantage.

  1. What is the position of social responsibility in Sangan Khorasan Steel Mining Industries Company and the sustainable development document of the region?

Sangan Khorasan Steel Mining Industries Company has always been responsive to its stakeholders and attaches great importance to its responsibilities to society and especially the local community. Therefore, since the beginning of its activities, with a long-term and sustainable perspective, it has taken fundamental steps to play a useful role in the economy, society, and environment, and by considering the interests of all stakeholders, it has formulated and implemented its major plans and goals in seven areas in a way that it can ensure the beneficial and long-term effects of its actions on the economy, society, and environment.

Sangan Khorasan Steel Mining Industries Company has defined its social responsibility in seven areas:

  1. Development of infrastructure projects, including:
    • Participation in the project to transfer seawater to Khorasan Razavi province
    • Road construction and water supply to deprived villages in the county
    • Assisting in the development of the infrastructure of Khaf city (bridge construction, visual monitoring)
    • Participation in the road construction project (Sangan-Khaf-Roshtkhar-Torbat Heidarieh)
    • Participation in housing development projects
  2. Development of education and skills, including:
    • School building
    • Providing textbooks and educational supplies
    • Conducting empowerment and skill enhancement courses
    • Equipping educational centers (technical and vocational, education, schools, etc.)
  3. Development of economic and employment, including:
    • Comprehensive research studies on the development and progress of Khaf County
    • Supporting employment and rural micro-funds
  4. Development of charitable and livelihood affairs, including:
    • Supporting the release of prisoners
    • Supporting county offices (purchasing equipment, etc.)
    • Helping to develop regional security
    • Charitable and compassionate aid (welfare, Imam Khomeini Relief Committee, providing food packages for needy families, dowries, etc.)
  5. Development and improvement of the environment, including:
    • Participation in the preservation and development of the region’s environment (tree planting, helping to preserve and multiply endangered species, rehabilitating damaged ecosystems, etc.)
    • Actions taken to develop the environment, optimize the consumption of energy and natural resources, and produce clean energy in the organization
  6. Development and enhancement of cultural and religious ideals, including:
    • Participation in cultural, national, and religious ceremonies
    • Assisting religious and revolutionary institutions (renovation, improvement, purchasing equipment, etc.)
    • Participation in holding camping-jihadi activities
  7. Development and improvement of physical and mental health, including:
    • Participation in the development and improvement of sports activities and competitions
    • Cooperation in developing and improving health (health promotion center, purchasing medical equipment and supplies, ambulances, etc.)
  8. What is the relationship between the company’s social responsibility and the community, and what feedback has it received?

Attention to the organizational ecosystem and responsiveness and responsibility towards society requires comprehensive interaction with stakeholders. Today, more than ever, we are witnessing a change in the view of companies from a purely organizational entity to a corporate citizen phenomenon. Social responsibility is a commitment that companies have to society and other stakeholders.

Given the changing role of companies from purely economic and production entities to special citizens as corporate citizens, the role of social responsibility is more prominent than ever. This is why fulfilling social responsibilities and addressing the needs of the local and national community and concern about addressing the problems of society is an important aspect of our sustainability approach.

Also, considering that social responsibility is one of our core values, Sangan Khorasan Steel Mining Industries Company has implemented various actions and plans in line with its social responsibilities during its activities, and for this reason, the company, through surveys of the community (which are conducted annually), assesses the impact of its social responsibility activities at the regional level.

The results of these surveys, which are conducted in various dimensions, show a high level of satisfaction among officials and citizens with the CSR activities of Sangan Khorasan Steel Mining Industries Company. And it has led to the comprehensive and sustainable development of the region.

Some of the dimensions measured in the community survey:

  • Overall community satisfaction (%)
  • Overall satisfaction of officials (%)
  • Overall satisfaction of citizens (%)
  • Satisfaction with the external image and reputation (%)
  • Satisfaction with social impacts (%)
  • Satisfaction with the impact on the regional and provincial economy (%)
  • Satisfaction with direct and indirect job creation in the region and province (%)
  • Satisfaction with environmental impacts (%)
  • Satisfaction with creating equal opportunities and diversity (%)
  • Satisfaction with supporting cultural, educational, scientific, medical, etc. activities (%)

Satisfaction with supporting the development of regional and provincial infrastructure (

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