Business has become an increasingly social business these days. Companies are looking at the needs of the society in which they operate as well as the needs of the society in which they want to operate. In addition, business is looking for ways to improve business practices that will have a positive social impact as well. This combination is creating a unique environment where business and social activities converge.
The great reset challenge facing businesses is whether they will be able to integrate the above with their own efforts to make their business more socially responsible. While there is a lot of buzz about this issue in the business press, few businesses have taken the steps needed to integrate the two successfully. The answer could be yes or maybe no, depending on the company’s priorities, resources, and other considerations. For this reason, here is a brief briefing note on “CSR as a strategy for business”.
What is “CSR”? Social cost management is the practice of aligning business actions (the costs of doing business) with societal goals (making a difference, reducing poverty, improving community development). By planning ahead and implementing strategies designed to create social impact, businesses can reap the benefits of their corporate social responsibility while minimizing the costs of doing business. For businesses operating in a global context, this means being aware of the benefits of social engagement, developing strategies to foster social investment in their business, and anticipating the impact of those strategies on the local economy. In short, CSR is a way of thinking about doing business that will minimize business costs while creating a great social impact.
How does CSR planning affect current business practices? Businesses will likely continue to focus on cost reduction as long as they are profitable. For the foreseeable future, however, the business will need to begin considering the larger social impact of doing business, especially if it will have any long-term impact on their business or company. As stated above, a company has the ability to affect how it manages its business relationships, both domestically and internationally. The practices developed here can help guide businesses to create positive social impacts in their day-to-day operations.
What are some ways in which we can “socialize” our companies? In the United States, we have been primarily engaged in market research and market entry, with relatively little focus on social issues, business culture, or social impact. In addition to this, our domestic focus has created an environment in which businesses feel free to ignore certain social issues, such as discrimination and workplace bullying. At the same time, companies in the United States have tended to focus most of their attention on cost reduction, which has had a devastating effect on our nation’s social landscape.
In order to address the growing need for effective social strategies, we must begin to address the negative impact of cost reduction on our social landscape. Effective planning requires the engagement of all parties in a company’s process. A core component of effective planning is defining the goals that you want your business to achieve, including monetary ones. When we focus on the goal of building sustainable business culture, we must also take into account the impact of these changes on our business culture, which can be significantly more significant than the impact of the small number of tasks that are required to achieve those goals.
For example, one important question to ask yourself is whether you are making plans to accommodate potential changes to employment laws that will impact the quality and quantity of workers you hire. A company without strong social strategies may find that the costs of recruitment and the training of new employees can exceed the value of those workers’ talents. Similarly, the impact of major changes to business practices in the United States and abroad can be even more dramatic if the business culture of the company is already tenuous. If you’re unable to build business strategies that effectively incorporate the needs of your employees, business culture can be easily disrupted, and the possibility of lasting damage to the business or the company’s ability to attract and retain talent becomes greater. Effective corporate and social planning can address issues such as these in a way that doesn’t damage the organizational capital as a whole, but rather provides the business with resources that will help it weather any economic storm.
Effective strategic planning must also incorporate the issues of safety, space constraints, business development, marketing and staffing. The larger the business and the broader the enterprise, the more issues can arise that threaten the integrity of your business operations. Social strategies can help organizations cope with these problems. These include creating safe workplaces by ensuring that appropriate laws are enforced, providing equal employment opportunities, addressing concerns about worker safety and addressing issues regarding business space and access. This comprehensive planning will help you build a business that will not only grow but also to be sustainable and successful for years to come.