A major shift is underway in the way corporations conduct business. From a self-interested point of view there is a dawning realisation that what is good for employees and community in general is also good for enterprise survival and profitability. It is also increasingly realised that social issues involving the environment, workplace and ethical governance are as much the responsibility of the enterprise as of governments or communities.
There appears to be a genuine push by big companies to match their corporate prowess with social and environmental credibility. The Corporate Social Responsibility Movement – recognises that sustainability is good for business and ultimately for shareholder value and is now seen as an essential part of good governance. Investment proposals are assessed for their environmental and social impact as well as financial return.
There is nothing more vulnerable than a company’s brand name and the credibility that it has built up over many years. In a globalised Internet world, with investigative journalists and NGOs keeping watch, business must be conducted ethically and transparently in order to maintain that credible profile. As a result, a number of major companies are forging partnerships with environmental groups such as the World Environment Fund and its Global Corporate Citizenship Program, in order to associate a more ethical philosophy with their brand.
Companies are also adopting environmental best practice- partnering with the community to cut carbon emissions, conserve energy and water resources and design more energy efficient infrastructure. These measures are equally good for the corporate bottom line as well as the environment.
Future Trends
One in five consumers would now be willing to pay more for products that are produced socially and environmentally responsibly. Also a majority of the European public feels that a company’s commitment to social responsibility is an important consideration when buying a product or service. Fair Trade products which are priced to provide a reasonable return to producers in poor communities, are also increasingly valued by consumers.
There is also increasing momentum to find value in the common good, a new type of business accountability through the Triple Bottom Line of corporate social responsibility, which values the level of benefit that a business can bring to community life. Business is now seen as an integral part of the global community with cooperation essential to its survival. The days of separating business decisions from their social impact are now gone. The corporate conscience of the future enterprise has been well and truly pricked.
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