Stakeholders and their pursuit of Corporate Social Responsibility
Designed by Freepik
“The blind pursuit of profit at all costs is untenable. It is essential that we make money the right way. After all, if communities suffer as a result of a company’s actions, those returns are not sustainable.” – Indra Nooyi
A corporation does not exist in vacuum. The environment in which it operates and the people who interact with it are the primary stakeholders. Hence stakeholders play a considerable part in shaping the CSR activities of a company. Companies that constantly engage with stakeholders and play a significant part in upholding their rights have been statistically proven to have outlived the ones who have had a myopic view of success and profits. Stakeholders hence can be the thread that connects a company to its future as they exert a considerable influence in an organisation’s functioning and eventually their success
Responsible Investing – A strategy that can be adopted by factoring in Environmental, Social and Governance factors in the Investment decision process
1. Environmental – Responsible Investing encompasses all the causes related to climate change, resource depletion, waste management, pollution or deforestation. Companies that are mindful of responsible investing have a clear cut agenda on the impact of their carbon footprint
2. Social – Whether they be human rights, child labour, employee relations or bonded labour and working conditions, socially responsible investors care to abide by the dictums of being human
3. Governance – In their approach towards business in the external environment, they tend not to be derailed by corruption, bribery, diversity and tax evasions along with lobbying and encourages to cultivate an environment of pay parity
Policies and Corporate Governance
The written code of law regarding Corporate governance specifies that companies run in a transparent and ethical manner thereby promoting good business practices. There should be clear disclosure mechanisms in place for financial statement reporting. The board of directors are the primary influence in enforcing a governance plan. It runs on certain basic principles of accountability, transparency, fairness and responsibility. An ideal Corporate governance policy should be based on the 4P’s
Ethical Consumerism and its role in CSR
An activism founded on the principles of minimalistic living, Ethical consumerism is a peek into the ever-evolving purchasing patterns of the consumer who is awake to the idea that he has a responsibility to the surroundings in which he lives by toning down social and environmental damage. It also goes a step forward by creating a progression which forces producers to think inwardly and of implications on their habitat.
Considered marketed poorly, Ethical consumerism can have lasting impact on changing the producer-consumer mindset if driven in the right manner. Let’s face it, we are not going to be seeing legislations in that direction even if our lives depended on it.
There are many who champion the cause of CSR and collectively they have only one thing to say, profit is not something to be pursued and that it just ensues, if you do everything else right. Or better yet let’s just take the high road!!!
Authors – Benila Jacob, Anthony Preetham