Sustainability has come a long way since the word first appeared in a prominent magazine that published a series of articles called The Blueprint for Survival. The series of articles focused on the calls to take action by more than 30 scientists who recommended that we have to change the way we live to support the Earth’s natural resources. More than 50 years later, sustainability represents an integral component of corporate social responsibility (CSR) programs.
The hospitality industry often receives credit for initiating the most comprehensive sustainability policies, especially restaurants that take steps to protect a rapidly dwindling supply of protein resources. However, a growing number of COOs in a wide variety of industries have implemented sustainable practices and followed the responsible sourcing of products. Sustainability is much more than taking care of the environment, although that is the primary objective.
Sustainability also drives business value by separating socially responsible companies and corporations from businesses that do not uphold sustainability practices.
In 2019, the Governance Accountability Institute (G&A) announced nearly 90 percent of large companies published some form of a sustainability and responsibility report. The push to achieve optimal sustainability and CSR is partly the result of meeting the expectations shared by shareholders. For example, 73 percent of investors look for companies that promote the best sustainability and CSR practices. Moreover, nearly 75 percent of consumers state they are most likely to buy from brands that have made the commitment to sustaining environmental resources.
What is Corporate Social Responsibility?
If you asked 10 business analysts to describe corporate social responsibility, you would probably receive 10 different answers. In fact, defining a CSR policy is in the eye of the creator of the policy. Nonetheless, CSR represents a business practice that takes into account the impact a company makes on employees, shareholders, and society as a whole. A successful CSR policy should minimize harm, implement fair business practices, and carefully manage the fragile global supply chain. It also should promote philanthropy and develop a collaborative human resources management system.
What Does Business Sustainability Mean?
Business sustainability is easier to define, as it represents a comprehensive approach to managing policies that impact social, economic, and environmental value. Social value refers to the impact a company has on social systems, while economic value concerns implementing policies that meet the financial objectives of a company or corporation. Environmental value, which receives the most attention and is directly linked to sustainability, focuses on protecting natural resources.
What Are the Benefits of a CSR Initiative?
CSR has evolved many times since it first became a goal for businesses operating in all industries. Although CSR has changed, the benefits of implementing a compelling CSR program have not changed.
Creates New Business Opportunities
Responding to the social, economic, and environmental challenges faced by companies can open up new opportunities for conducting business, particularly in emerging markets such as the lucrative markets found in India.
In 2010, Ambuja Cements, which is an Indian subsidiary of the building materials company Holcim, initiated numerous CSR programs at several of its plants. One CSR program involved saving reserve water from the company’s operations, and then using the water to provide support for drought-stricken communities. Ambuja Cements leveraged the excess supply of reserve water by trading reclaimed farmland for new mining areas located in India.
Boosts Brand Image
Improving brand image is one of the many positive results of implementing CSR programs. Starbucks, which has deservedly earned the reputation for being one of the leaders of the CSR movement, offers insight into how to incorporate a CSR platform into a company mission statement. Starbucks issues an annual Global Social Impact Report, and the 2020 version listed the company’s CSR impact.
Starbucks acquires 100 percent of its coffee beans from ethical sources, as well as has created a global network of farmers that are expected to receive more than 100 million trees by 2025. The company promotes developing green-friendly infrastructures at every one of its stores. Starbucks devotes millions of community service hours to help the neediest communities both in the United States and throughout the world.
One of the many positive results of the CSR program established by Starbucks concerns a substantial boost in the company’s image.
Improve Engagement with Customers and Employees
A growing number of both customers and employees consider corporate responsibility to be an important factor in deciding where to buy products, as well as deciding where to work. Customers often look for labels on products that describe a company’s commitment to establishing a CSR policy, with a strong emphasis on achieving sustainability goals. Many manufacturers have started labeling products with a green-friendly designation to let customers know about their commitment to sustainability.
During an era of quiet quitting and the Great Resignation, employers must expand their conventional recruiting strategies to include a focus on promoting the best CSR practices. Recruiters have noticed an interview trend in which job candidates include a question about CSR when the time comes to learn more about a company. Although compensation and career growth remain the top two factors for job candidates to consider, CSR has emerged as an influential factor for job candidates to consider.
The Bottom Line: Create a CSR Program for Your Company
COOs are typically responsible for implementing CSR programs. Although CSR programs are considered soft law in that the initiatives are not legally binding, COOs can access several policy guides to help them create and implement an effective CSR program.
0 Comments