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Nine ways corporate responsibility benefits your business

Here’s nine ways corporate responsibility benefits your business:

1. Brand value and reputation – benefits realised from responsible business that improve the value of the brand and/or the reputation of the brand or organisation.

2. Employees and future workforce – benefits from responsible business practice that affects the working life of employees, and the ability to attract and hold on to talent. This includes employee motivation, productivity, recruitment, satisfaction, retention, engagement, and loyalty.

3. Operational effectiveness – improvements and innovation in an organisation’s practices and processes as a direct result of being more responsible and sustainable, creating more effective operations and higher levels of efficiency.

4. Risk management – benefits resulting from CR efforts that improve the organisation’s ability to identify and reduce exposure to risk, and prepare for and manage risks better.

5. Direct financial impact – direct benefit to the financial performance of an organisation. For example improving access to capital, reducing costs, and improving shareholder value.

6. Organisational growth – an opportunity for overall organisational growth derived from being a responsible business, whether through new markets, new product development, lateral expansion, new customers, or new partnerships/alliances.

7. Business opportunity – new opportunities or innovation generation created for all stakeholders specifically because of their efforts in being a responsible business. This can result in new business development, but critically it is about win-win opportunities for a variety of stakeholders.

8. Organisational leadership – defined as “leadership achieved through helping society” which results from a radical change in the internal corporate values and external market reconstitution.

9. Macro-level sustainable development – defined as “the impact and responsibilities an organisation has to higher level economic, social and environmental issues”.

These points are taken from an essay by David Grayson: “Why companies must build the business case”, published next week in the September edition of Ethical Corporation magazine.

David is director of the Doughty Centre for Corporate Responsibility at Cranfield School of Management and a long-standing Ethical Corporation contributor.

More on the latest issue of our fabulous magazine is here. This month, as always, it’s a cracking read.

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