What is the importance of corporate social responsibility (CSR) in construction?
To amplify their positive impact on the social and environmental systems in which they operate, it is important that companies develop coherent CSR strategies. CSR strategies are the path towards having a more sustainable business because they cover both social and environmental impacts, and human rights and ethics issues.
The construction industry is one of the largest sectors in the world and is responsible for over 30% of the extraction of natural resources, as well as 25% of solid waste generated in the world. The focus on CSR within the construction industry has significantly increased as businesses within this space are facing growing pressure to improve CSR strategies. Construction projects are not discreet or low-impact, and have enormous short-term and long-term impacts on workers, local communities, and the natural environment. While CSR strategies are not a legal requirement for businesses, they are something that should be taken more seriously and ultimately contribute to compliance and risk management.
What are examples of a company’s sustainability goals?
When developing a CSR strategy, it is essential that it is well-aligned with the company’s purpose, the values of key stakeholders, and the needs of the communities in which the company operates.
The primary areas of focus for CSR strategies for construction companies include:
- Improving equality and diversity.
- Ensuring buildings and community spaces are well designed.
- Reducing their carbon footprint.
- Reducing waste in construction projects.
- Providing a boost to biodiversity.
- Supporting local communities.
- Providing educational resources.
- Implementing responsible sourcing.
- Reducing the risk of modern slavery or human rights abuses in the supply chain.
- Improving the working conditions and remuneration for all employees.
What is the risk of a company not taking a sustainable approach?
People and businesses are making more conscious decisions when it comes to choosing what businesses to work with or purchase from. Their preferences are for businesses that are actively taking steps to: minimize the impact their operations have on people, society, and the environment; and increase the positive outcomes that the business is responsible for.
As the expectations for CSR increase, and as transparency becomes more prevalent, companies are recognizing the need to act sustainably. The emphasis being placed on sustainability and the circular economy means that initiatives like Ecoloop – Australia's leading ACP recycling program – are key in achieving sustainability targets.
