Is it prudent for a corporation to be involved with philanthropy and social initiatives? The answer would need to include whether or not philanthropy contributes to productivity and the bottom line. According to the Harvard Business Review on Corporate Responsibility [HBS Press, 2003], there are ways to serve the world’s poor, profitably. By aligning business goals with social initiatives a business can foster community sustainability with corporate growth. After examining a few corporate examples there is evidence that a win/win relationship exists between corporate productivity and social responsibility.
The AT&T Foundation is one example where business goals are aligned with a commitment to social betterment. The AT&T website explains its philosophy by stating, "We strengthen our communities by providing good jobs, donating our time and talents, supporting underserved populations and promoting education programs that create economic opportunity." They also focus on environmental sustainability through partnering with other agencies to improve information and communication technologies.
There are many ways an organization can support a social initiative in accordance with profit margins. Another example is the Marriott Corporation who trained and hired 6,000 persons on welfare and was able to cut costs and increase productivity. They were motivated by a desire to help the community while still helping the bottom line.
Through organizing the infrastructure of a company to include these principles, there does not need to be a separation between business and social participation. The motivation for companies to be socially responsible revolves around sustainability. It can be in a company’s best interest to provide a needed service within a low income area. By incorporating a service that improves the resources and infrastructure of a community, it can offer an economic return for the organization through recognition or direct community investments. In this sense, a business has an obligation to both profit and serve the community, for all stakeholders involved.
Corporate Social Responsibility (CSR)
CSR is a model for incorporating ethical business regulations into the business model. This includes the notion of a triple bottom line, and provides sustainability through a checks-and-balance type of system. Through this model, the corporation is willing to embraces a responsibility to the environment, community, employees, and other members of the public sphere. The three areas of accounting are:
- Financial success or profits
- Contribution to livable environment
- Contribution to solving social problems
From this perspective a corporation has a framework for incorporating each area into the business model and business culture, which generates growth for all three areas. A difficulty is applying this model initially without any setback in financial profits. This is of course unless the organization innovatively adopts a socially directed goal aligned with business processes. Should this ethical issue be a requirement for businesses that have direct business involvement with social issues?
Implementing Sustainable Development
In realizing a competitive value of starting to practice the CSR model the process can begin to permeate, and be fostered by U.S. companies and worldwide. There are new markets through community needs, and companies play a leadership role in solving many of today's social problem. Leaders in all sectors, whether business or government, have an opportunity to improve current issues and solve many business problems. Community needs can be opportunities to utilize business technology and provide collaborative efforts to serve community needs.
Joseph Wilner - Joe Wilner is a Certified Coach Practitioner (CCP) that provides guidance and coaching for achieving academic and professional goals. He ...
