Corporate Social Responsibility and sustainability as
relevant factors in the modern business world: The Rationale.
The role of the business has evolved and it has become
apparent that today’s corporation is not only accountable for the generation of
profits, but also for being a responsible member of society and a good
caretaker of the planet. It has brought CSR and sustainability into the central
stage of ethical business management systems as fundamental standards.
Of all the topics that can be discussed, it is high
time that the issue of Corporate Social Responsibility is deemed an imperative.
Corporate social responsibility popularly known as CSR
is not just a form of charity. It summarises a company’s ethos to do business
in a rightly perhaps legally compliant manner while not compromising self-generated
principles of fairness and responsibility to all the concerned parties from
employees to customers, investors, local communities, and the environment.
The consumer today is a global citizen who has become
sensitive to the brands he or she is affiliated with. Therefore, a relatively
large number of consumers prefer to engage and support the brands and companies
that promote the principles of sustainability. In turn, this reflects a
corporation’s CSR, which enhances brand image, improves consumers’ perception
of brands, and increases employee loyalty.
Also, CSR can reduce risks. Economically, those
business organizations that are better at embracing Ethics and sustainability
are less prone to reputations, and legal incidences, let alone loss of capital
resulting from unethical behaviors and environmental catastrophes. Taking an
early insight, it becomes noble to notice that settling such issues offers a
way of making business more sound and long-standing.
Sustainability: One of the ethical principles central to the
management of organizations.
Sustainability is a key component of CSR and most
organizations seek to ensure that they meet their current needs and those of
the next generations without negatively affecting the latter’s needs.
Environmental, social, and economic concept are contained within it.
Environmental sustainability can be defined as the
process where a firm manages its overall impacts, which harm the physical
environment in order to assume the smallest volume possible. This is something
like decreasing the emissions of carbon, using green energy, encouraging supply
chains that are green etc.
Social sustainability considers the interests of the organization’s
workers, consumers, and inhabitants of a certain area.
Social sustainability actions can help create a good
image of the firm within society and with its stakeholders.
This type of sustainability is important in
guaranteeing a business’ economic sustainability, meaning the business’s
ability to sustain itself financially. It also constitutes good practices in
managing the organization's resources in terms of the financial aspect and
ensuring that the risks are well managed to enable the organizations to come up
with viable long-term strategies. Therefore, while implementing sustainable
practices, the argument that is often put forward is that firms will become
more efficient, cut costs, and hence, will become more competitive.
Connecting CSR, Sustainability and the Business.
The incorporation of CSR and sustainability requires a
more comprehensive strategy in today’s corporations. This involves:
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Leadership Commitment: The management, particularly
the corporate executives, should lead in implementing CSR and sustainability.
•
Stakeholder Engagement: Engaging the employees,
customers, suppliers, and communities in the CSR process.
•
Performance Measurement: Understanding how McDonalds a
plan, monitor and report its CSR and sustainability performance.
•
Risk Management: As for the environmental and social
impact, the major risk is to fail to identify possible threats in the first
place, or to underestimate them, or to address them inadequately.
•
Innovation: The importance of adopting advanced
technologies and innovative solutions for improving business sustainability and
results on society.
Ethical business practices help the firm to gain the
trust of clients, make compliance with the law easier and are generally good
for the business.
It is clear that sustainability and CSR strategies
offer multiple benefits to the companies pursuing them. In addition to building
up the company’s image and managing risks, these businesses can create positive
relations with the staff, increase employee satisfaction and productivity, and
spur creativity. Also, by opening up to its stakeholders, it can enter new
markets, develop closer customer bonds, and drive sustainability.
Thus CSR and sustainability should become a
competitiveness strategy of ethical business practices as they have become
non-negotiable facets of doing business. This paper shows that when business
organizations act rightly so that their actions will not harm individuals and
the environment, the organizations can make profit and establish trust in the
process of making the world a better place to live in.
CSR Approaches and Canadian Case Studies
It is time to take a closer look at several cases of
actual firms and businesses that incorporate CSR into their strategies and
value propositions. A few examples that need to be provided will include the
following as a way of showing implementation of CSR and the benefits it offers.
Potential case studies:
Patagonia: Long before environmental
concerns became trendy, Patagonia has always been an example.
•
We can for instance look at the type of business they
are in, their supply chain management, and the measures they have taken
concerning environmental concerns.
•
The Body Shop: This trading business based its
strategic position on ethical acquisition and social consciousness. Perhaps, we
can reflect on their policies of fair trade, animal treatment, and community
improvement.
•
Unilever: Unilever as a MNC provides a broad portfolio
of CSR activities that company delivers to its consumers. They can relate to
their sustainable living plan or particular campaigns such as the Dove
Self-Esteem Project.
Patagonia: The Utility Keepers: A Case Study in Environmental
Stewardship
The region called Patagonia has obtained a high level
of connection with the preservation of the environment and the principles of a
sustainable economy. The more detailed and precise the company’s mission
statement is, the more obvious it becomes that sustainability constitutes a
major priority: “Build the best product, cause no unnecessary harm, use
business to inspire and implement solutions to the environmental crisis.”
Environmental Protection as a Centerpiece
•
Product Design and Materials: Patagonia has gained
immense popularity as a company committed to sourcing raw materials of the
highest quality and elements that would not harm the environment on top of
developing products with the minimal impacts on the environment. The company
has also incorporated a lot of capital in research to come up with new material
and techniques of producing clothes.
•
Repair and Reuse: Patagonia discourages The customer
from buying new products instead of repairing their pieces. They do repair, and
they have a Worn Wear, which means customers can return used Patagonia products
for store credit.
•
Supply Chain Transparency: Through transparency in its
supply chain management it shows appreciation for the company. They, thus, have
good working relations with suppliers on matters concerning the ethical
treatment of workers and environmental conservation. Patagonia has also been
quite proactive in speaking out about the problems faced by the textile
industry and has gone public demanding change across the whole industry.
•
Climate Action: Although Patagonia’s production is
located overseas, the company has been quite active on the subject of climate
change. The organization embraced environmental conservation through indirect
ways like investing in the production of green energy, minimizing the use of
fossil-based energy, and supporting environmental conservation NGOs.
Business as an Instrument for Change
Thus, the business approach of Patagonia is not aimed
at generating as much profit as possible. Lately the company has been involved
in the creation of awareness about the environment, and in promoting policies.
All of them contribute millions of dollars to environmental organizations and
have never trespassed to comment on government measures detrimental to the
environment.
Through the
success of Patagonia, the case proves that one can be a business entity which
is lame but still good. 1 Thus, through their focus on sustainability and
social justice, Patagonia has gained the trust of the consumer and recognition
as one of the industry’s innovators.
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