Arauco's CSR: Ethics, Respect & Environment - Essay Sample

Paper Type:  Essay
Pages:  3
Wordcount:  693 Words
Date:  2023-02-24


Arauco does not have a clear definition of corporate social responsibility (CSR). The company, however, have taken into actions ideas that promote ethics, respect for people, and the environment where the company operates (Arauco, 2019). According to the company management of Arauco, CSR is a combination of various policies and programs that work together to achieve the company's operations. For the past ten years, Arauco has worked towards CSR activities by engagement in forest works in Latin America (Alonso, 2019). The company produces approximately 3 million tons per year of the Kraft cellulose. The company further produces approximately 3.6million cubic meters of Sanwood. Arauco operates in more than sixty countries, therefore giving room for employment of more than 36,000 people. Arauco strictly protects forest covers made of natural trees through its engagement with local communities. There are sections set aside by the company termed as areas of high environmental value (Enrique, 2019).

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Social innovation is the second CSR. The company has set up a social innovation team that is tasked with developing sustainable and achievable projects that are environmentally attainable. The initiative set up covers for areas. These areas are economic developments, a right working place for employees, productive ecosystems, and society that is humane. Arauco dedicates time to develop and improves its corporate policies through engagement in a long-term relationship with people living in areas where they operate. The company encourages locals to engage in activities that can reduce wastage of forest biomass through engagement in the education of best techniques that can be an alternative. The local community is benefitting from company activities through Arauco education foundation (Hurtado, 2019).

Benefits of Engaging in CSR

Engaging in CSR is the best way to assist a company in building its reputation. A company with a good reputation have a better competitive advantage. It helps a company to reduce wastage and emissions. An organization gets a chance to conserve the environment while saving money through the reduction of utility bills. CSR offers companies a chance to have a positive impact in the area of operations. It is ethical when organizations engage in activities that conserve the environment and deliver services that are beneficial to the community. CSR ensures that public outcomes are supported. The public value of an organization is realized when the company engages its citizens in activities that offer them voluntary services. It provides an organization with a chance to be the most preferred company in society. Customers and employees prefer an organization that is responsible for the actions (Sprinkle & Maines, 2010).

Evaluation of Arauco's CSR

Arauco engages in activities that result in an environmental disaster. I agree with them that in order for them to restore their image, and then they are required to engage in activities that will restore their reputation. There was an accusation that the company was guilty of environmental disasters in Valdivia, southern Chile ("Form 20-F", 2019). The company needs to engage in CSR activities to restore its tarnished name. Investment programs set aside through the MIDES territory management is achievable and offer benefits that are worth improving the lives of people living in the company's area of operations. There is only a disagreement regarding territory plans is that the plans could slow down CSR activities within Chile. It would be the best decision of the company to decide to engage in areas that are most affected by emissions rather than engaging in a large area (Widiarto, 2009).


Alonso, C. A. (2019). Latin American Geopolitics: Migration, Cities and Globalization. Springer.

Arauco. (2019). ARAUCO | Productos Forestales Sostenibles para la industria. [online] Available at: [Accessed 1 Oct. 2019].

Enrique, M. (2019). ARAUCO| Sustainability Reports. Retrieved 1 October 2019, from

Form 20-F. (2019). Retrieved 1 October 2019, from

Hurtado, p. (2019). Corporate social responsibility for a successful business: an example from Latin America. [online] Available at: [Accessed 1 Oct. 2019].

Sprinkle, G. B., & Maines, L. A. (2010). The benefits and costs of corporate social responsibility. Business Horizons, 53(5), 445-453.

Widiarto Sutantoputra, A. (2009). Social disclosure rating system for assessing firms' CSR reports. Corporate Communications: An International Journal, 14(1), 34-48.

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Arauco's CSR: Ethics, Respect & Environment - Essay Sample. (2023, Feb 24). Retrieved from

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