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There are multiple facets of running a business and most companies make sure they have them covered. Departments, staffs, and software exist to handle each of these. In addition to the typical chores of business, there is another aspect that should have personnel assigned to it.
Ethics and integrity are important. Dishonest and illegal business practices are not just frowned upon. They can ruin reputations, shut down companies, and lead to prosecution. In addition to building the bottom line, corporations have other responsibilities.
Social Responsibility
A less-talked-about but no less vital part of business is company social responsibility. This means that companies, their owners, and their executives must strive to always act in the best interests of their community, environment, and society.
Being socially responsible is not easy as it is a balancing act between doing what is necessary to remain profitable and build the company and staying true to what is best for those around the business.
The ethics and dedication of a company to society, both local and general, usually matters to investors and employees. It can boost the morale of workers and make entities more likely to put money into the business. It’s the right thing to do and it can also help profits.
The 4 Types of Social Responsibility
There are four basic types of social responsibility that all companies should practice.
- Environmental – Companies should have practices in the manufacture and shipping of goods as well as the elimination of waste that are eco-friendly. Much of the environmental damage in the nation has been caused in the past by corporations. Businesses should work to recycle, reuse, reduce their carbon footprint, and conserve water and energy. This includes using sustainable and non-polluting sources of fuel.
- Labor practices – How a company treats its employees is guided by state labor laws as well as ethical concerns. Workers should have a safe work environment, free from physical danger, as well as emotional and mental harassment. Regular breaks, meal periods, vacation, and sick days should always be provided. Fair pay and opportunities for advancement are also part of a company’s responsibility to its workers.
- Philanthropy – A company also has a responsibility to use its resources to better the local community. This can be in the form of college scholarships for deserving high school students, foundations for worthy causes, and trusts for the good of society. Performing good deeds rewards a company with good vibes.
- Promotion of volunteer work – There are many institutions that do good work for society and rely on volunteers. A company can encourage corporate officers, employees, and community members to take up some of these posts in their spare time by promoting institutions and their needs.
A well-run company will participate in all four of these social responsibilities on a regular basis.
Benefits of Social Responsibility for Society
Social responsibility benefits society in several ways. Environmental concerns are met. Energy conservation as well as clean water and air are good for the people and other living beings in the local community. Philanthropy assists worthy people in need who may go on to make contributions to the good of society. Treating employees well keeps local unemployment numbers low and helps boost the economy. Volunteering makes sure the institutions have the workforce needed to reach their goals.
Benefits of Social Responsibility for Companies
Companies that practice various forms of social responsibility also benefit. A clean environment is a better place in which to do business and can help prevent illnesses among employees. Workers who are treated well are more motivated to go the extra mile and take pride in company success.
A company that practices social responsibility will have a sterling reputation among everyone in the community. This makes for good feelings and good press. Both can boost profits.
Tell the Community
It’s OK to brag a little about the good things your company is doing. Make your social responsibility campaigns public through press releases and good PR. Helping society is something to be proud of and people should be aware that you are doing it.
There is a lot to building a successful business. Profits are important but don’t neglect social responsibility. When you practice it consistently, everybody benefits.
