Corporate Social Responsibility
Corporate Social Responsibility (CSR), often known as Corporate Citizenship, is a concept that explains the responsibilities of a company towards its surrounding environment and society. CSR is increasingly becoming essential for organisations in terms of defining their roles in communities in which they operate as well as establishing fair business practices.
Customers nowadays prioritise and approach those companies who display serious efforts in developing and implementing CSR framework and ESG (Environmental, Social and Governance) policies. In other words, enterprises can accomplish business sustainability by taking into consideration the measures to positively impact the world they live in.
The Triple Bottom Line
The triple bottom line is an accounting framework that highlights corporate social responsibility. Profit, People and Planet are the “Three Ps” of triple bottom line. The fundamental idea behind is that the organisations should not only be involved in maximising profits but should also be responsible for protecting and fostering social well-being.
Profit: Profit generation for shareholders is among the major goals a company seeks to fulfil. Emerging business leaders now focus simultaneously on making profit as well as driving social accountability across the firm by establishing CSR Framework.
People: A business must take measures to benefit people who come across its operations. This can include employees, shareholders, customers, community members and even future generations. Provision of safe professional environment, ethical treatment and encouraging volunteerism are few of the ways to be considered in this domain.
Planet: It is one of the important components of the triple bottom line. World’s leading companies are now promoting activities which leave a positive impact on the environment, such as producing renewable energy for facility operations, reducing gas emissions, limiting water consumption, and managing waste.
In a nutshell, organisations shall attempt to reach beyond their fiscal objectives and shall contribute positively to the community and nature. Simply by practicing CSR, a company can attain brand recognition whilst providing benefit to the society.