Chairman of Ford Motor Company, William Ford Jr. once said, “social obligation is much bigger than supporting worthy causes. It includes anything that impacts people and the quality of their lives.”

Corporate Social Responsibility (CSR) is what is changing those impacts and the quality of people’s lives. It is now being used more and more in the heart of the business strategy. This includes its HR strategies, marketing strategies as well as the thinking behind investor relations.

There are still sceptics, there will always be – but the changes and significance of having a CSR program implemented for many organisations globally, is huge. The variation of transparency on environmental and social commitments, waste management (not just physical waste but power etc) all the way to employee engagement to bringing about massive social change is what makes CSR sexy.

There are points which CSR covers across the board that affect daily running and optimally the strength of companies. To start off with CSR is important for human resources (HR). Why? And who says so? Some HR Managers would argue they already do plenty towards CSR in the company such as employee wellbeing and volunteer programs, so what makes sustainability any different?

To attract and retain the best employees, organisations have to be the best. Employees are very conscious of their own employee brand. They don’t want that “damaged “by a tainted organisation or company brand. The best organisations today are those that are innovative, fun, safe and are impacting the world in a way beyond themselves.

So what about employee engagement and retention? Surely that is a basic connection between CSR and HR?

Without happy and encouraged employees, you struggle to find a happy, fulfilling workplace. The CSR programs and initiatives set up have a huge role in both how staff feel about the company and its schemes and also, whether it is portrayed through staff productivity.

This is particularly apparent for new graduates heading into the workforce who are now on the lookout for these sustainable, transparent organisations. Many are even willing to take a cut in pay, for a company that would encourage volunteering and have a positive environmental footprint. A stat from Harvard Business Review in 2011, stated that –

“88.3% of graduating MBA students said they would take pay cut to work for firms that have ethical business practices, and the average amount they’d forgo is $8,087, according to a survey of 759 students in North America and Europe.”

NetImpact also recently completed a study across all generations, and found many of the ‘new generation’ millenialls expect to make an impact through their work.

This brings out a new trend called ‘impact careers’ – which is simple terms means making positive social/environmental differences through one’s work.  A motion not commonly associated with previous generations of workers.

Generation Y, particularly those with a college education, have been taught throughout their lives to think globally. They are instilled with feelings of becoming a world citizen. This is particularly enforced by technology such as the internet, social networking and increased global mobility.

But although the internal dealings are important, the stakeholders and external interests cannot be forgotten either.

Investors are constantly putting up their money behind organisations that participate in ethical behaviour in their business practices.

Particularly areas such as alcohol, tobacco, gambling or weapons manufacturing are typically avoided – unlike what was reported in Jakarta Post last month reporting tobacco firms targeting minors via CSR programs!

For the most successful and effective corporations, CSR is now a major consideration of overall strategic planning. It affects many aspects of the corporation’s life: its people, consumers, suppliers and investors – prime example of the BP oil spill in 2010 in the Gulf Coast. Now three years on, BP has spent around $150 million into promotions to help recover the region – with a very large positive impact being made on residents and local businesses.

As many organisations do not yet get this concept, implementing these practices will ensure responsible and socially aware corporations are ahead of the curve in HR strategies, marketing strategies as well the relationships with investors and will be around for the long haul. Knowledge is no longer power; responsibility is.

As the third most destructive, environmentally damaging industry in the world, shouldn’t fashion be just as environmentally friendly as the next industry? Now, it is.

Huge names in the fashion world such as Stella McCartney, Marc Jacobs, American Apparel and even Bono (who even knew he designed clothes!) are doing their part in changing the carbon footprint from this $300 billion a year industry.

H&M’s 10^th annual CSR report has been buzzing in fashion networks, showing off their further commitment to being a ‘conscious’ fashion label. From the report noticeable areas of change are seen from the highlights, including – 2.4 million pairs of shoes made with water-based adhesives, using organic hemp as an alternative fabric and saving 300,000,000 litres of water from denim production.

In fact they aim to be using only sustainable cotton by 2020, but have been open about the challenges they face to getting there.

H&M CEO Karl-Johan Persson says in the report, “We are proud of all the achievements we have made during the year. But we are also aware of the challenges ahead. We strive to be as transparent as possible about the progress we make.”

But it doesn’t have to be these mass, global companies doing all the good. For example, Country Road in both Australia and New Zealand has a sensational sustainability guide for the company and has been in action since 2008.

They have connections with Red Cross that make huge impacts for both organisations. Collect any unwanted Country Road clothing or accessories, take it to any Red Cross store and receive a $10 voucher towards the next purchase over $50 at Country Road. Isn’t that a good motivator not to just throw our clothes away!

This is also seen through The Salvation Army (TSA) in their Adult rehabilitation programs and thrift stores. These programs provide an environment for people to regain self-esteem and valuable vocational skills. Anyone purchasing recycled clothes from TSA stores, not only prevents the waste going into landfills but helping others reclaim their lives and helping families.

There are even such events as ‘Eco-Fashion Week’ recently held in Vancouver. The three-day event brings in more than 2,000 global VIP’s, buyers, guests, designers and many more.

And they are not just there for the fashion shows, EFW promotes speaker seminars and industry panels which propel all the aspects of the fashion industry, but into an ecological society and culture.

ASOS, one of the top online fashion retailers attracting nearly 18.5 million visitors a month, has also just recently announced its certification as a CarbonNeutral company. They are the first retailer to achieve this status under The CarbonNeutral Protocol, which is the international standard for continuing integrity and quality certification programs.

Due to their online presence, ASOS has less of an environmental impact compared to other retailers, and their main source of emissions is from packaging and customer delivery. The CO² emissions from ASOS’ energy use, business travel, non-recyclable waste, deliveries and commuting has been measured and reduced to net zero, through verified carbon offset projects.

They are also involved with numerous small charities throughout the UK including, The Prince’s Trust, Udayan Care, Oxfam and Retail Trust. As the business continues to grow, ASOS will add further initiatives to their CSR program and further its ongoing environmental policy.

Finally, a completely new initiative from London College of Fashion who have teamed up with clothing giant, Marks and Spencer to create the UK’s first Sustainable Fashion Lab. The project gives customers an insight into the world of fashion and even allows them to try designing some of their own pieces.

By taking in unwanted clothes, each item is assessed for potential use and then can be reused and transformed or taken to a local Oxfam shop. This fashion lab is happening from 26 April to 9 May in East London.

All of these changes are what can begin to make fashion sustainable and affordable for many average citizens. Let’s hope this year and for years to come, companies are open about their promises and make real changes in this ever-growing industry.