Corporate social responsibility, or CSR, describes efforts towards maintaining a solid triple bottom line (environmental, social and economic goals) with an focus on sustainability. It’s often found in parallel with a commitment to do good as a part of a company’s corporate DNA.
A strong CSR policy shows a dedication to advancing the community that a company resides in, in parallel with the company’s own interests. There is power in a deep-seated desire to solve society’s problems this way: Pricing power, cost savings (due to adoption of best practices and recycling), new market entry, and increased market share. Many Fortune 500 companies (as well as smaller operations) are now requiring a sustainability policy on RFPs and from their supply chains. Without a suitable policy in place, RFP submissions are not even considered. Social and environmental responsibility are now considered table stakes for prime, second and third tier suppliers. What does this means for you? Growth, if you have CSR policies as part of your day-to-day business practice. The alternative is possibly being eliminated from consideration.
If stacking up to the competition isn’t a concern, then acquiring the best and the brightest of the new talent pool should be reason enough to consider a CSR policy. Large companies are now being evaluated by prospective buyers and new employees, taking the Dow Jones Sustainability Index, Global Reporting Initiative, and Newsweek’s Green Rankings into heavy account. The millennial labor pool is looking for corporate social responsibility policies, health and wellness initiatives, safety, and diversity in their prospective employers. Millennials are more likely to stay with an employer by a margin of 2:1 if the company has (and lives up to) a strong CSR policy.
The motto “do good to do well” has never had more value in the corporate world.