Social Responsibility and Sustainability: The New Business Values

Business values provide the structure that supports the rapidly changing regulatory, social, and political environments that affect business. With new generations entering the workforce, businesses are adapting to the rapidly changing world with social responsibility and sustainability goals.

But what does this mean? Trying to retrofit an older business into the new business environment is not always an easy fit. A piecemeal approach, with a check to the food bank at Thanksgiving, is a good start, but a better approach is a look at sustainability and social responsibility throughout the business.

Sustainability can be considered to have three parts. A business needs to have financial sustainability, which means the business needs to be able to meet its financial obligations and goals. It needs to have environmental sustainability, which means that every business decision — shipping, packaging, manufacturing, transportation — needs to be assessed through a filter of environmental sustainability. Thirdly, the human potential of the workforce needs to be protected with fair labor practices, a safe workplace, and a living wage.

These three areas of sustainability are the bones of the business. If any one of them fails, the effects are seen throughout the other domains.

Social responsibility is part of a corporate culture that values the changing concerns of the workforce and is part of environmental and workforce sustainability. The workforce today wants to see businesses show concern for their world and the people living in it; they want to see transparency in the way a business does business, from supply chains to manufacturing to workplace safety; and they want to see diversity and inclusion being embraced and supported throughout the workforce.

But just like sustainability is a three-legged stool, only in balance when all the legs are touching the ground, so social responsibility needs to be part of a company’s values. Rather than just a marketing tool or a great soundbite, social responsibility needs to be built into the DNA of the company’s business, along with the values of transparency and diversity. It can’t exist alone. If the work of a business is supporting veteran’s causes, and the company sponsors activities and gives money to disabled vets organizations, it also needs to hire disabled veterans and provide a safe working environment.

Employee engagement, so tied to profit and success, is also very dependent on company values. The workforce sees clearly when sustainability and a dedication to social responsibility, transparency, and diversity are considered as part of every business decision, rather than window-dressing. A loyal, engaged, and dedicated workforce is the long-term result of the new business values.

For more information on corporate social responsibility, please contact us.