Doing Well by Doing Good: Corporate Social Responsibility

socially and environmentally sustainable manner that satisfies all its stakeholders,
including investors, customers, employees, suppliers, local communities, and the environment.

But, whether you’re a mega-corporation or an entrepreneurial start-up, how do you keep all these disparate groups happy and survive?

Financial Sustainability:

The primary social responsibility of a company is to make money; that’s what keeps a company in business and provides value to its investors.
But, it’s not just how much money you make, it’s also how you make it.
Are you cutting corners or misrepresenting your business? Do you deal in corruption?
Do you use shady accounting practices? Does your compensation package reward executives at the expense of employees?
These practices might lead to short-term gains, but they undermine the long-term stakeholder value of your operation.
Maintaining financial CSR requires well-developed internal programs that promote ethics, standards and good governance, a time and labour intensive exercise, yet one that minimizes investor risk.

Social Sustainability:

For a long time, companies perceived of CSR as corporate philanthropy.
While there is nothing wrong with that, more and more companies are finding active engagement in their community is more effective. Community engagement, like building a playground or doing a neighbourhood clean-up project, is terrific.
However, social sustainability goes beyond such activities.
It includes positive relations at all levels of government and compliance with international and local laws.
Even more, it demands maintaining human rights and practicing workplace health and safety not just at your facilities, but insisting on it at all supplier facilities as well.
The pay-off for your company is a positive reputation with all stakeholders everywhere.

Environmental Sustainability:

Going green is smart business these days.
Everyday sustainable practices like using eco-friendly products and recycling can reduce toxic landfills; turning off unnecessary electrical appliances can reduce company costs and improve the bottom line. Adhering to good safety practices in the workplace, especially in the management of toxic wastes, can have an even bigger ecological impact.
We can all do without another oil or chemical spill, mine collapse or nuclear leak!

As we become more global it is increasingly important to a company’s reputation and growth to be a good corporate citizen by minimizing the negative effects of the business while maximizing the positive.
To successfully implement CSR requires motivation and participation by employees as well as executives.
Start by identifying the priorities and satisfaction levels of all stakeholders. Then communicate your CSR intentions clearly with all of them.
The internet has an overwhelming amount of information on ways to implement this triple bottom line accountability.
The 10 principles of the UN Global Compact is a good place to start. By doing good your company is more likely to do well and improve the long-term sustainability and value of the business.

Hilka Kinkenberg, MPA CPP CEC, is the founder of the Global Coaching and Consulting Group.
For over 20 years she has helped her clients develop their global leadership and team-building capabilities by providing them with the knowledge and skills they need to understand, manage and leverage cultural differences to avoid costly faux pas. Hilka has coached executives, worked with corporate teams at all levels, and spoken at conferences and conventions.
She is a certified coach, Emotional Intelligence practitioner, and a recognized expert in the field of international protocol and business etiquette. She holds a Masters in International Policy Administration from SIPA at Columbia University. She is the author of: At Ease...Professionally.

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