Page 8 - Bottom Line Vol. 29

2. ETHICAL RESPONSIBILITY: MILLENNIALS WANT TO SEE MORE
EMBRACING CORPORATE SOCIAL RESPONSIBILITY:
THE PATH TO SUSTAINABLE BUSINESS
I n today’s dynamic business landscape, companies
are increasingly recognizing the importance
of Corporate Social Responsibility (CSR) as
an integral part of their identity and operations. CSR
is the concept that businesses have a responsibility to
do good, encompassing the need to self-regulate their
actions and be socially accountable to their customers,
stakeholders, and the world at large. This commitment
can manifest in various tangible practices, categorized
into four main types of CSR: environmental, ethical,
philanthropic, and economic responsibility.
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CORPORATE SOCIAL RESPONSIBILITY
Ethical responsibility involves ensuring fair business
practices throughout the organization. This includes To millennials and Generation Z, socially responsible
treating all employees, stakeholders, and customers companies are increasingly important. They believe
with respect and fairness. Examples include setting companies should invest in improving society and look
higher minimum wages, ensuring ethical sourcing of for solutions that assist in those improvements. A recent
materials, and providing comprehensive benefits for poll revealed that 80 percent of young Americans are
employees. likely to base their purchases on a brand’s mission or
purpose, while 74 percent would boycott brands that
3. PHILANTHROPIC RESPONSIBILITY: cross an ethical line and go against their personal
values.
Modern businesses don’t just exist to profit; they also
serve their communities. Philanthropic responsibility Thus, companies need to share how they are trying to
involves giving back through donations or support for make a positive impact on the world, ensuring the public
local causes that align with the company’s mission. is aware of their pro-social initiatives. Showcasing
This can range from sponsoring a local nonprofit event, these efforts is crucial, as it can sway consumer choices.
establishing staff volunteer days, or contributing a Millennials also prefer to participate in initiatives such
portion of earnings to a larger cause. as volunteer work or donations. As more companies
recognize the impact of socially and environmentally
4. ECONOMIC RESPONSIBILITY: conscious efforts on consumer perception, the likelihood
of them initiating their own CSR programs increases.
Acting with economic responsibility means prioritizing
the greater good over maximizing profits. This could CHANGING CORPORATE
involve partnering with suppliers who use sustainable SOCIAL RESPONSIBILITY TRENDS
materials or committing to transparent salary practices
that address pay disparities. Activism by millennials and other generations continues
to influence changing trends in CSR. Companies
WHY BUSINESSES SHOULD HAVE A
SOCIAL RESPONSIBILITY PROGRAM are expected to take public stands against on-the-job
harassment and discrimination, as evidenced by the
#MeToo movement.
► Enhanced Brand Reputation: A commitment Workplace diversity is also expanding to embrace
to social responsibility can improve a company’s
image and build trust with consumers, leading to
increased customer loyalty. people of all races, genders, cultures, disabilities, and
sexual orientations. Many brands are becoming more
► Attracting Talent: Many employees, particularly vocal about supporting important social issues on social
media, yielding positive effects.
THE FOUR TYPES OF younger generations, prefer to work for
CORPORATE SOCIAL RESPONSIBILITY organizations that prioritize social responsibility. A Furthermore, companies are finding their own voices
strong CSR program can help attract and retain top
talent. to speak out against social injustice and policy changes
that may negatively impact the environment. Policies
1. ENVIRONMENTAL RESPONSIBILITY: ► Risk Management: Engaging in socially protecting data privacy in an evolving landscape are
responsible practices can help mitigate risks also becoming integral to CSR trends, particularly as
Companies committed to CSR engage in associated with regulatory compliance, reputation data breaches threaten personal information.
environmentally friendly practices that go beyond mere management, and operational sustainability.
compliance with regulations. This means genuinely For example, in 2022, Patagonia’s founder, Yvon
minimizing harm and championing sustainability. ► Long-Term Profitability: Companies that invest Chouinard, set a new standard in environmental
Businesses can reduce their environmental impact in social responsibility often see financial benefits, corporate leadership by giving away the company and
by using alternative energy sources, implementing as consumers are more likely to support businesses its future profits to combat climate change. He stated,
recycling programs, or donating to local environmental that demonstrate a commitment to ethical practices. “If we have any hope of a thriving planet – much less
organizations. a thriving business – 50 years from now, it is going to
► Positive Impact on Society: By implementing
social responsibility programs, businesses take all of us doing what we can with the resources we
contribute to social change, helping to address have.”
pressing issues such as climate change, inequality, (CONTINUED ON NEXT PAGE)
and community development.