7 Reasons Corporate Responsibility Makes A Lot Of Business Sense

While being socially responsible as a business does typically require more upfront labor and material costs, it's a good practice regardless. There are plenty of benefits gained from adhering to proper corporate responsibility practices.

Whenever you are dealing with a competitive landscape and a labor market, you'll be competing against other businesses for talent and customers. Prospective employees want to know that they are working for a company that has an excellent track record of being responsible. This includes a willingness to address any environmental concerns. By putting your business out there as a socially conscious company, it can attract more prospective employees that have the best leadership and teamwork skills. Likewise, by treating them with respect, you can reduce any sort of turnover that you might otherwise experience. It's also a great way to get your business to stand out from the rest of the competitive landscape. Being a good corporate citizen and being environmentally responsible will ensure you can differentiate yourself from the rest of the marketplace.

For instance, if a company shows its commitment to helping social causes, it will showcase to prospective partners and clients that the company is committed to making a difference in the community. This will only put the company in a better light when it comes to customers who are conscious of supporting socially responsible companies. Likewise, incorporating environmental best practices in your business will show prospective customers you are doing what you can to make a positive change. Some customers will only do business with companies that acknowledge environmental awareness and that do something about it.

Where does a company start? Here are some of the best tips that you can use when you are trying to ensure your company is doing what it needs to do to be a respectful and responsible corporate citizen.

1. Code Of Ethics

First and foremost, your business needs to have a business code of ethics that everyone follows. This should educate your employees on what is expected of them in your company. This includes everything from the environment to corporate values, ethics, and even customer service. A lot of startups are going even further by having a governance document that includes the corporate commitment to making environmental and social changes.

2. Socially Responsible Investment

Businesses need financing and an ethically sound firm will look towards social responsible firms to provide this. The world of finance can be a murky one, and many backers' interests can make for grizzly reading. Doing your research and finding a firm that puts a priority on socially responsible investing such as Humankind Investments, ensures you’re investing in ethical, sustainable companies.

3. Protecting The Environment

You need to have a full development of best practices that your company will be following. This needs to address everything that your company can do to protect the environment. For instance, you can create a report that shows all of the activities you are doing to make a better environmental impact. Many ethical businesses are moving towards manufacturing locally as it allows them to cut their carbon footprint and also ensures that those creating their goods are given a fair days wage and good working conditions.

4. Getting Your Suppliers On The Same Page

You also need to ensure that all of your suppliers are on the same page when it comes to your changes. You need to not only vet them to ensure they can handle your changes and that they are going to meet your expectations. Ensuring suppliers are ethical and offering sustainable methods of manufacturing is pivotal for a firm that wants to show corporate responsibility.

5. Be Smart About Charitable Donations

One way a business can make a positive change is to figure out what causes align with your ethics. From there, you can choose which organisations and causes to better support. For instance, a forestry business may look for organisations focused on protecting the environment. You want to try to give back in a way that showcases the values of your brand.

6. Don't Greenwash Your Company

You want to ensure that you are using honest marketing strategies within your business. Don't try to manipulate your target market. Instead, you want to be transparent with your target market. What you do is just as important as what you say. Ensure your actions are matching your words.

7. Adhere To a Safety and Health Program

You need to create a good workplace health and safety program to ensure you are establishing all of the right systems within your company. This can help prevent a lot of injuries and accidents that could otherwise occur. Likewise, it can help to keep you fully compliant with all of the government legislation that exists on public health and safety.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes