Socially responsible corporations as well as those who are not are recognized by the United States judicial system as an individual entity with the power to defend itself in court. Just as Individuals interact with other individuals constantly in families, communities, cities, towns, states and nations. Corporations have their their own responsibility to interact with more than just customers and vendors. Socially responsible corporations focus on these areas and many others:
SCR Popular Topics
- Business Ethics
- Ethical Business Management
- Ethical Employment Standards
- Ethical Investing
- Green Business Practices
- Corporate Citizens
Other Corporate Social Responsibility Topics
- Corruption Free Business Activity
- Family Friendly Hiring Practices
- Environmental Responsibilities
- Corporate Volunteer Programs
- Spirituality in the Workplace
- Carbon Reporting
- Carbon Footprint Reduction
- Corporate Giving Programs
- Inter-generational Considerations and Policies
- Life Balance Focus in Business Policy
CSR Concerns
- Child Labor
- Boiler Room Labor
- Gender Biased Pay and Policies
Businesses are increasingly being held to high moral standards and companies are attempting to evaluate Return on Investment (ROI) of expenses related to Social Corporate Responsibility (SCR), also called Corporate Social Responsibility (CSR).
SCR Return on Investment
It is a seductive thought that being a socially responsible corporation "Pays." All would love to live in a world where corporate ethics are rewarded and irresponsibility punished. However the evidence of this being currently present or growing for the future is weak at best.
While examples exist of companies doing well with superior CSR programs and others doing poorly with no CSR programs; David Vogel of Forbes Magazine added, "... there are at least as many examples of firms with good CSR records that have not done well and firms with poor CSR reputations that rewarded their shareholders."
Companies who have done well in their social responsibilities have varied successes. Starbucks, Levi Strauss, Gap, Whole Foods, Timberland and General Electric all have great success stories when related to implementation of SCR programs. However many of them have had downward turns in their business success financially. While some companies see the big picture and address the needs of their communities, most will agree that from a business standpoint alone the ROI does not support large allocations of budget to these areas of interest. Nevertheless, Boston College Center for Corporate Citizenship reports that corporations in the U.S. have been continuing to commit resources to socially responsible initiatives. This is good news for customers, vendors and employees.
Top Ten Socially Responsible Companies of 2008
- International Paper
- United Parcel Services
- Starbucks
- Fortune Brands
- Walt Disney
- McDonald's
- Medco Health Solutions
- Herman Miller
- Weyerhaeuser
- Union Pacific
Top Ten Socially Irresponsible Corporations
- Constellation Brands
- WellCare Health Plans
- Sears Holdings
- Dana
- Federal-Mogul
- Beazer Homes USA
- S&C Holdco 3 (Swift & Co.)
- Dollar General
- Brown-Forman
- Delphi
* Data provided by Fortune Magazine
Socially Responsible Corporations Practice Green Initiatives
Some green initiatives have a positive financial benefit to a company. A corporate recycling program has the potential to save a large amount of procurement monies or bring in a new source of revenue from recycling end users. Tax incentives or subsidies may help increase the bottom line in recycling programs. Telecommuting as an option for employees has shown in past surveys to produce significant increase in productivity of employees, better retention and less stress related expenses (i.e. mental health benefit cost-share). Telecommuting reduces a company's carbon footprint and in some cases can bring incentive monies back to the company.
Another green approach is installing solar panels to improve alternative energy usage. This large upfront expense should be evaluated prior to allocating funds. Technology is increasing and costs should follow the path of all other technological devices by dropping in price as new innovative products are introduced.
Corporate Community Volunteerism: General and Specific Projects
The Walt Disney Company built a playground in Los Angeles in December of 2007 in conjunction with neighborhood residents as well as KaBOOM! and TreePeople. When a company closes a department for the day or pulls together on a weekend to accomplish a single project such as building a playground; communities greatly benefit from what was accomplished.
On the same token individual employees have favorite charities and would love to volunteer with them, rather than the company sponsored agency. Some companies provide a specific amount of time-off for employees to volunteer within their local community.
Volunteer Projects and Programs
However a volunteer program is sliced, it will normally increase good-will for the company, with the community, vendors and customers. It will also create a greater sense of ownership and respect for company principles and values from employees.
SCR covers a wide array of topics. Knowing how to balance company costs, reputation and responsibility will help to develop strong community bonds and company survivability.
Sources:
Vogel, David. "CSR Doesn't Pay." October 16th, 2008
Staff Writer. "Best & worst: Social responsibility." Fortune Magazine. March 17th, 2008
W Denis Nurmela - - Built multi-million $ companies from scratch - Church & Non-Profit Leader - Educated & Avid Reader - Coach, Consultant, ...
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