Keeping Corporate Social Responsibility Alive
In the age of big profit, big business, little-concern corporations, firms are not considered particularly environmentally conscious or self-aware. Since the presumed mentality of most firms is to maximize profits with little internal expenses, corporations tend to possess a short time horizon, pursuing immediate gains at the expense future externalities. Such mentality has leveraged hefty damage to the environment in haunting catastrophes such as British Petroleum’s oil spill in the Mexican Gulf during 2010.
These events have quite literally scarred the memory of Earth. In a statement released by the United Nations Environmental Program, UNEP decreed that “there was a growing gap between the efforts to reduce the impact of business and industry on nature and the worsening state of the planet” and that “this gap is due to the fact that only a small number of companies in each industry are actively integrating social and environmental factors into business decisions.”
The handful of corporations that operate with a social conscience often uphold corporate social responsibility by maintaining ethical and environmental responsibility for its actions. Verdigris Group, a real estate and consulting firm, has engineered a set of sustainable initiatives for partnering businesses. According to Verdigris Group, the noblest example that a firm can set for other businesses is achieving highly on markets without compromising environmental integrity.
Another firm that has put corporate social responsibility initiatives into action is RBC Wealth Management USA, which reportedly allocates $50 million to organizations that protect fresh water reservoirs along with a 10-year commitment to carry out provisions of their own. Each year, RBC employees participate in non-profit community activities in order to raise awareness about Earth’s limited fresh water resources. In doing so, the firm builds a sense of respectability, attracting future employees and future consumers, which in the long-run may place corporate social responsibility businesses ahead of others.
Furthermore, operating with corporate social responsibility not only benefits the environment but can, apparently, also benefit firms as well. According to Forbes, the majority of CSR corporations believe that their employees are happier and also more efficient than that of non-CSR firms. Despite the vast amount of corporations that operate with little regard to the environment, it appears that more and more firms are shifting towards corporate social responsibility initiatives in order to make profit while also making a positive impact on the world.
– Phoebe Pradhan
Sources: United Nations, Forbes