Nowadays, companies have a social purpose. But in earlier times, business ventures focused solely on maximizing their financial returns. They are transforming how they do business and are inclining their business focus towards social responsibility. A company having a social purpose can build its brand and bolster its image before its customers and employees. With collective effort by employees and organizations, substantial results can be achieved, which increases workplace morale and boosts productivity.
Before discussing the social responsibility of companies having a social purpose, let’s first know what social purpose actually is?
What is Social Purpose?
Social purpose is creating societal benefits by the very act of conducting business, and its growth is a positive force in society. Often, companies that see remarkable growth in their business decide to give back to society. Not only big enterprises but even small companies are now becoming socially responsible.
In the business world, the shift is happening. Many CEOs of top companies are starting to recognize that social purpose is a necessary part of a business. They have been working in the best interest of the environment, engaging in charity, and making an effort to obliterate poverty at national and international levels. They are leveraging their influence and rising to the occasion to build a better world for all — including themselves.
Now that you know what social purpose is let’s move on to the responsibilities of companies having a social purpose.
Responsibilities of Companies Having a Social Purpose
Each company has its own definition of social responsibility. They understand it in different ways and implement different ways to become a socially responsible business. But these four are the broad categories in which social responsibility initiatives fall:
1. Economic Responsibility
Economic responsibility initiatives include improving the company’s business operation while participating in sustainable practices. But businesses can’t achieve this without their staff and colleagues. So, put people first in your business. Be kind to them and know what clients feel when working with you.
An example of being economically responsible is when companies manufacture goods while minimizing wastage.
2. Philanthropic Responsibility
It is the act of a corporation or business promoting others’ welfare, generally through charitable donations of funds for health initiatives, educational programs, community beautification projects, or any other cause. They donate a specific portion of their profits to charitable causes.
Such philanthropic programs can be beneficial for society as well as for businesses. They can use them as a form of public relations or cause-related advertising to promote their business.
3. Environmental Responsibility
It is the legal responsibility of corporations to operate in a manner without impacting the environment. Over the past few years, stakeholders of the company are expecting their organization to become more environmentally responsible. Business organizations should store and manage waste correctly. It’s their responsibility to notify the relevant enforcing body to take steps to prevent the damage.
If your business activities pose an imminent threat to the environment, you must take remedial action to repair the damage if your activities also cause actual environmental damage. Additionally, companies dedicated to environmental responsibility continually review their manufacturing, distribution, and purchasing systems to move toward greater sustainability.
4. Human Rights Responsibility
Human rights responsibility initiatives involve providing fair labor practices like gender equality, fair-trade practices, diversity in the workplace, and disavowing child labor.
It is significant for companies to review their policies and protocol to check whether they align with fair labor practice. For example, they can review their diversity policies monthly or quarterly to address any complaints and violations. It will not only be good for the company’s image. But will also help in building positive company culture with good morale and high productivity.
It is critical to have clarity about your social responsibility. You can use it to align everything that your organization does. So, choose your responsibility and align your business strategy according to it.
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