Corporations influence the society and environment through their activities. The influence could be positive or negative, depending on the way the corporations do business.
Normally, corporate actions are motivated by considerations of profit. But the corporate social responsibility (CSR) movement requires corporations to conduct business with a focus on the triple bottom line–social well-being, environmental protection and profitability. This can be done only when all stakeholders understand the intricacies of CSR and participate in it.
Here are a few reasons for all stakeholders to learn CSR.
Good for business: It is good for businesses to practise CSR because consumers, job-seekers and companies in developed countries look into the CSR track record of manufacturers, potential employers and partners. Because of that, companies put their CSR records on their websites.
Can generate creative solutions: Awareness about CSR may provide a suggestion or an idea for doing a business better, benefitting triple bottom lines. These ideas are most likely to come in about building integration between social, environmental and business processes.
Regulations: Governments are beginning to realise the power of corporations and want to regulate their operations so that their negative impact on the society and environment could be controlled.
Growing awareness among stakeholders: Growing information and awareness among stakeholders is changing their behaviour pattern from passive silence to aggressive demand for accountability and responsible conduct from corporate entities.
It helps in CSR management: There are not enough trained CSR managers around. Learning about CSR will lead to better CSR management.
Every stakeholder of business, society and environment has to learn about CSR for its own good. The key stakeholders like customers, suppliers and community can protect their interests through CSR knowledge.
(The author is president, Vision Consulting, a management & CSR consulting firm)