A successful and sustainable business model must consider the needs of all it’s stakeholders. This includes stockholders, customers and even the community around it.
In an era where unsustainable and unsavoury business practices can be spread around the community through social media and the news in seconds, businesses need to implement effective Corporate Social Responsibility strategies in order to protect their image and benefit all stakeholders.
No longer should the primary focus of business just be profits. Not without considering both people and planet as well. At least, that is the triple bottom line approach (people, planet, profits) that many top Canadian universities have began to teach their MBA graduates.
As Dezsö J. Horváth, dean of the Schulich School of Business says “Research shows that companies that focus on the social and environmental bottom line as well as the financial bottom line create greater shareholder value on average over the mid-to-long term. Adopting a broad triple bottom line approach is more than just good corporate citizenship — it’s simply good business management.”
CSR, as a powerful strategic tool, should be employed by all levels of the corporate ladder. Social responsibility should not be assigned to a small silo-ed department that has little ability to effect management decisions. Rather it should be embedded within the mission of the firm itself to strive to better relationships with all stakeholders.
Visit this link for more information on the growing field of CSR: