Corporate
social responsibility is corporate initiative to assess and take responsibility
for the company's effects on the environment and impact on social welfare. The
term generally applies to company efforts that go beyond what may be required
by regulators or environmental protection groups. Corporate social
responsibility may also be referred to as "corporate citizenship" and
can involve incurring short-term costs that do not provide an immediate
financial benefit to the company, but instead promote positive social and
environmental change.
WHY CORPORATE SOCIAL
RESPONSIBILITY BUILDS LONG-TERM SUCCESS…?
With
sustainability as clearly more than a trend, there are a few things businesses
should keep in mind when looking to establish a company built for long-term
success.
Register
as a benefit corporation from the beginning: Establishing a company as a benefit
corporation allows the business to embed socially minded goals in the company
and maintain that foundation through efforts to raise capital. Creating brand
loyalty must mean a loyal commitment to these goals. Historically, companies
had opportunities to get a certificate to highlight their commitment to social
benefits, but there was not legal protection from investors or executives that
wanted to shift the company’s direction. Now, with benefit corporations,
investors will be investing in a company that has socially minded principles
embedded through law.
Do
not lose sight of “standard” business practices:
Establishing a goal to improve the environment or your community can be all
encompassing. Businesses must make sure you establish solid business practices
in your company to ensure success. This means ensuring that you produce a
high-quality product or service. In order to maximize profits, socially minded
goals must be carefully married with a high quality product or service to truly
achieve brand loyalty.
Look
to executive education programs: These are valuable as talent sources
for prospective employees with skills that can help you maximize profits while
attaining your social and environmental goals.In fact, the model I teach,
Socially Environmentally Ethically Responsible (SEER) Business Strategy, aligns
fully with the intent of the benefit corporation. CSR is one of four
macro-values the organizations must embrace in order to achieve the aims that
the benefit corporation classification is meant to aspire. By applying an
integrated strategy encompassing a quality product or service, financial
strength, corporate social responsibility and environmental stewardship,
business can and will drive profitability and positively impact society.
Research
and real-life examples make it clear: Entrepreneurs looking to start a new
business or an executive looking to maximize profits while doing good, have
greater odds of achieving success through a benefit corporation designation.
Having an emotional connection — a heart-felt occurrence that organically
evolves over time — will provide concrete financial benefits that will help
companies grow over the long-term.
Integral
strategies in ensuring substantive long-term results include:
· Define path of
progress in CSR and strategically manage expected organizational outcomes
· Ensure basic CSR
values are culturally integrated across the organization
· Adopt an
effective engagement strategy with stakeholders to create buyer awareness and
loyalty
· Properly map
organizational objectives and critical success indicators with CSR performance metrics
REFERENCE FROM http://www.cnbc.com/id/47599530/Social_Responsibility_Builds_LongTerm_Success_Opinion
