Question by Patrick Reindl of Universität Regensburg on ResearchGate
Do corporate responsibility actions have a direct impact on the business of a company?
My Reply -
YES, in more than one way… Environmentally, Socially as well as Economically!
Any business is considered eligible for CSR when it’s making certain profit which means it has established its profit making mechanisms and now it is in the profit maximization phase, i.e. doing well. To maximize the profit, it must utilize more resources including natural resources and not all such usage could be audited directly, monetarily or precisely, still its ‘value’ could be easily understood from the fact that in absence of it no production/service of any kind would be possible… ever. This fact spells the environmental responsibility as no living creature has any right to destroy/use up any ‘consumable’ that belongs to the entirety and which cannot be repaired, reproduced or repaid, classic example being pollution in any form. If the environment is affected, every living being will suffer the consequences and no business or company could exist without human beings, however smart technologies it could have.
The gap between 'Have-it-all' and 'Have-nothing' expands as rich get richer and poor get poorer, studies in economy and sociology suggests. As this difference grows in form of disparity, it inevitably invites trouble. No one could get away with saying ‘If they don’t have bread, let them eat cake…’ anymore. Being indifferent and showing disregard for others for a long time could develop a devastated social unrest and no business can operate in a law and order situation. Inclusive development is neither a buzzword nor any cliché anymore as with a connected, interwoven and globalized world; it is not only impossible to consider any entity independent but would be absolutely imprudent. It has become a 'part to whole' integrated world and (business) class cannot assume to live safe and luxurious in the silos while masses are discomforted and compromising for everything.
Finally, Economy – the sole purpose and power business relies on – could not be kept abreast unless there are buyers for the products/services business has to offer. If the masses are broke and have already indebted for loans that amount to multiple times than their borrowing capacity, how could the economy flourish and run smooth with just one wheel? Any commodity/product/service could not be profitable if the deals are lopsided, basics of economics say.
To sum it up, Environmental Sustainability, Inclusive (Social) Development and Balanced Economy, all under CSR are not only desirable, mandatory or requisite but absolutely inevitable, essential and nonnegotiable for the sheer existence of any Business henceforth. Having a good social image to project for attracting talent as well as customers could be a windfall in the process, not the objective!