Monday, March 9, 2009

Corporate Social Responsibility - Is it Good for Business?

Going Green today is more than just setting up a recycling program or using e-statements. While many businesses are familiar with the old concept of social responsibility, wherein companies, on a voluntary basis, reached out to assist their customers and communities, the definition now has been greatly expanded. Possibly due to the growing environmental issues facing our communities and planet, a new concept is being applied.

Corporate Social Responsibility (CSR) is a concept that organizations and mostly companies, have an obligation to consider the interests of customers, employees, shareholders, communities, and ecological considerations in all aspects of their operations. Just like the old definition of social responsibility, this obligation is seen to extend beyond their statutory obligation to comply with legislation.
This concept applies to all businesses in all industries. Regardless of whether the company is a white collar office based service organization or a blue collar based manufacturing facility, there are steps that must be considered and taken to alleviate the impact of the company’s activities on the environment. While a factory belching smoke has obvious environmental impacts, other industries impacts may not be as apparent. Consider the nice clean white collar office building. How much energy is it using? How much paper? Ink? Water? All of these factors , and many more, while unseen, have an deleterious impact on the environment.

How? Let’s just consider water for now. For every gallon used, the water must be cleaned, processed and re-purified. This is an energy intensive procedure and requires substantial use of electricity, most of which is produced today from fossil fuels. Processing paper from wood pulp typically requires enormous amounts of water usage, not to mention the trees destroyed and chemical emissions released into our atmosphere and sometimes, waterways. And it’s not just the factories using water. Think of it this way: each time you flush the toilet, you are indirectly releasing additional CO2 into the atmosphere, speeding global warming.

Of course, we are not advocating that you send your employees into the woods whenever nature calls, but an overall policy of CSR should include a systematic program on water usage reduction. Most importantly, your CSR policy should consider not only local effects of your business activities, but also the far reaching effects.

Besides the rewards of “doing the right thing”, there are monetary rewards for CSR: recent surveys indicate a growing number of your prospects and customers now take a company’s environmental policies into consideration before doing business. Companies that truly Go Green enhance their marketability, improve their employee relations, and reduce their energy costs. As they used to say, it’s a win-win-win for everyone.

Joseph Winn is the President/CEO of GreenProfit Solutions, Inc. which assists businesses in becoming environmentally responsible. You may view their website at www.greenprofitsolutions.com or e-mail Joseph at jwinn@greenprofitsolutions.com .

photo credit: Swisscan on Flickr