What is a CSR Risk?

A CSR risk does not refer to a (financial) risk to one's own organization, but to a risk related to corporate social responsibility (CSR). We define a CSR risk as the potential damage that companies can cause to people, the environment and society, either by being directly involved or by making an indirect contribution via business partners. It is therefore an externally oriented interpretation of a risk (social risk) rather than a business risk. Of course, causing social damage can also have a negative effect on the company, for example through reputational damage or financial liability, but we do not consider these risks here. Internationally recognized CSR themes include corruption, human rights and the environment. 

However, CSR is not only about risks, but also about the opportunity to contribute to a more sustainable world. If, as an entrepreneur, you address CSR risks within your supply chain, you also contribute to achieving the Sustainable Development Goals (SDGs).

What are the SDGS?

According to the UN, the 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries - developed and developing - in a global partnership. They recognize that ending poverty and other deprivations must go together with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests. Visit the website of the UN for more information on the SDGs. 

The CSR themes used in the CSR Risk Check often link to different SDGs and vice versa. This page shows how the CSR themes link to the SDGs.

Example: O My Bag

The CSR Risk Check shows that underpayment and gender discrimination are CSR risks in the leather industry. The company O My Bag conducted research into a strategy for improving the income and gender equality of factory workers at first-line suppliers. The research focused on the realization of a living wage for the workers who work on O My Bag products. A living wage is a wage that allows a worker to provide for his or her family in basic needs, such as healthy food, schooling, clothing, housing and allows the worker to save for unforeseen circumstances. A living wage contributes to SDG 1 No Poverty and SDG 8 Decent Work and Economic Growth. It is also important to realize that contributing to an SDG often has an indirect impact on other aspects. A living wage can also have an impact on other SDGs such as SDG 2 Zero Hunger and SDG 4 Quality Education. Furthermore, through a long-term 'Female Empowerment' program, O My Bag also wants to contribute to SDG 5 Gender Equality. 

Below are examples of how other CSR themes are linked to the SDGs.

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