Business Sustainability and Company Social Responsibility

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Company social responsibility is one of the most debated topics around the world in recent years and many business leaders have expressed their support for it. Accepting the concept of company social responsibility and implementing measures to achieve it is a conscious decision taken by most businesses around the world. Businesses don’t do it because it makes them looks good, but because it is beneficial for their business. Let’s look at what company social responsibility actually means.

Company social responsibility means all actions taken by a company to not only comply with existing laws, but to achieve the long terms goals that are beneficial to the community it operates in. It involves the following things:

  • Conducting the business of the company in an ethical manner such that it meets the interest of the community it operates in
  • Being cognizant of societal priorities and expectations
  • Protecting the interests of both, shareholders and the community as a whole
  • Acting in the interest of the community even when there is no regulatory obligation to do so
  • Being a good corporate citizen

A company that feels obliged to address the concerns of not just shareholders, but all stakeholders can be considered as a CSR compliant company.

Business Sustainability

A business that can withstand severe shocks because of its close connection to social, economic, and environmental systems is said to have achieved business sustainability or corporate sustainability. Such businesses help build strong local communities, boost healthy ecosystems, and create economic value.

Company social responsibility is one of the most debated topics around the world in recent years and many business leaders have expressed their support for it. Accepting the concept of company social responsibility and implementing measures to achieve it is a conscious decision taken by most businesses around the world. Businesses don’t do it because it makes them looks good, but because it is beneficial for their business. Let’s look at what company social responsibility actually means.

Adherence to the principles of sustainable development is the key to achieve corporate sustainability. For an organization to become sustainable it has to address issues at the micro as well as macro level such as:

  • Social equity which includes poverty, health of community, and human rights
  • Economic efficiency by way of innovation, increased productivity, and sound financial management
  • Environmental issues including efficient land use, preservation of the biodiversity, and climate change

These issues are best addressed by engaging all stakeholders, finding common ground, and joint decision making. Environmental issues can be addressed by putting in place systems and processes that foster environmental efficiency in the organization’s culture.

Business sustainability or corporate sustainability does not go unrewarded. Employee retention rates go up, financial risks are reduced, enhanced business reputation, and innovative employees are some of the benefits organizations derive.

Source by Bahar Gidwani

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