October 28, 2009Doug Hadden
The Ethical Dimension
We wondered why social responsibility in business needs to be justified. New ideas from the telephone through to Web 2.0 meets resistance. So it is with CSR.
There is a notion in corporations that “this is business, not personal.” (To quote the movie, “The Godfather”. )
But, business is personal. It’s very personal. A business can impact thousands of people. Businesses affect employees.
That’s why so many billionaries turn to philantropy.
CSR helps business leaders to provide social good on the road to billionaire status.
Many observers believe that the focus on financial capital is insufficient to value a company. Companies have social capital – how the business impacts society. And businesses have natural capital – how the business impacts the environment.
This ethical approach helps companies to determine value through triple bottom line reporting: profit, people and planet. This approach helps business leaders to recognize any negative impact. According to the Conference Board of Canada, CSR is “a vital part of a long-term, comprehensive approach to business success”