Anisuzzaman Chowdhury is an experienced business leader who serves as chairman for Navana Pharmaceuticals, Anowara Construction Ltd and Gas One. This article will examine the importance of corporate social responsibility (CSR) and how, by taking responsibility for their actions and following a sustainable business model, companies not only drive positive societal change but reap a plethora of commercial rewards.
CSR is a term that describes efforts made by a business to take responsibility for its actions. CSR is a sustainable business model that places the onus on business owners to constantly consider how their organisation impacts both the environment and society.
CSR initiatives fall into four broad categories, namely environmental, economic, philanthropic and ethical. They are designed to compensate for the enterprise’s effect on both the community and environment. Businesses practising CSR maintain a code of ethics and conduct with the goal of achieving a positive impact on the world.
Ann Keet serves as senior director of leadership ethics at Santa Clara University’s Markkula Center for Applied Ethics. She emphasises that CSR practices reflect both a company’s values and its relationship to society. As Ms Skeet points out, CSR can encompass voluntary activities, such as philanthropic efforts, as well as areas that are now being lightly regulated, for example strategies deployed to address environmental, social and governance (ESG) concerns. She advocates small businesses approaching CSR holistically by engaging in activities that align with their core values and mission.
CSR can include various activities, such as supporting local or global charities and being proactive about labour laws and benefits. One integral aspect of CSR is adopting clean energy solutions to reduce the carbon footprint of a business.
Companies fully integrating robust CSR policies into their daily activities can expect to achieve profitable growth and a sound financial return on their investment. Research shows that companies that are committed to CSR also reduce staff turnover while simultaneously making themselves more appealing to high-level talent. With consumers increasingly paying attention to organisations’ social and political stances, incorporating CSR practices can actually trigger an increase in profits, with countless examples of customers boycotting businesses whose ethics were found to be lacking. Companies that prioritise CSR promote positive values, increasing customer traffic and corporate profits.
Superlativ Media CEO Rex Freiberger describes a sustainable business model as one that generates value for everyone involved in the business without draining the resources that helped create it. A sustainable business model is one that will help the business profit quickly and stay afloat in the long term, considering all stakeholders, assessing and addressing environmental impacts and conducting transparent and thorough reporting.
A sustainable business model is commercially profitable, positioning a business for success far into the future. It relies on resources the company can depend on in the long term. While cheap resources such as palm oil may be tempting for businesses, it is crucial to consider the bigger picture instead of simply adopting convenient shortcuts. Palm oil may appeal to food manufacturers due to its affordability and availability. However, customers have been turning away from products containing it in their droves due to its association with deforestation and severe environmental destruction.
Sustainable businesses give back to society rather than just taking, following a ‘borrow-use-return’ model rather than centring around ‘take-make-waste’. Rather than just taking from the earth, sustainable businesses borrow resources with the intent to replenish stocks. In recent years, the concept of responsible consumption has become equally appealing for consumers and businesses alike.
Businesses operating robust CSR strategies attract more customers and drive sales, building trust and strengthening their brand while simultaneously reducing risk as the business grows by creating a positive impact on the world.
