Corporate Social Responsibility (CSR) is something all businesses can achieve. It calls for a holistic approach, balancing stakeholder needs while rewarding shareholders with profits.
Today's business world brings many challenges, and enterprises are increasingly adding 'corporate social responsibility' (CSR) to their wish list of achievements. While CSR is something all businesses can –and should achieve – it calls for a holistic approach, balancing stakeholder needs while rewarding shareholders.
CSR is a term used to describe an organisation's obligations to the needs of its stakeholders – from employees, customers and suppliers through to community organisations and investors. It's a responsibility soiree of Australia's corporate household names are embracing, including one of Australia's premier companies – BHP Billiton.
CSR involves more than 'political correctness'. According to Mr. Ian Wood – Vice President of Sustainable Development and Community Relations at BHP Billiton, the corporate world is increasingly recognizing the link between CSR and real long term business success. Ian notes, "BHP Billiton operates a broad sustainability strategy that encompasses governance, health, safety, environmental and community objectives." In particular, he says BHP Billiton has identified key sustainability challenges such as climate change, and has gone on to implement strategies to improve the company's track record and address its impacts.
Not unreasonably, many organisations would question whether the extra costs imposed by CSR mean a reduced bottom line. Ian explains, "In the early stages of addressing sustainability issues, there are many simple behavioural and/or procedural changes that can effect real change with minimal cost outlay and very quick payback periods."
That said, he also points out the cost outlays involved in tackling larger issues may become significant, potentially involving changes to large pieces of equipment or even introducing new processes. "The paybacks may still, however, be generally acceptable when taking into account broader social and environmental objectives," he adds.
Moreover, CSR isn't something that only large corporations with deep pockets can achieve. Ian believes CSR can be cost-effective for enterprises of all sizes. He says, "The approach taken is directly related to the type and scale of the operation. The best CSR impact an enterprise can make is in the areas that it directly impacts – rather than areas that are 'popular' but which may be irrelevant to the business."
"Either way, the activities are focused on improving stakeholder relationships and process efficiency for the particular business. This creates a positive bottom line effect regardless of the size of the enterprise," he says.
This article appears courtesy of
Expense Reduction Analysts.
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20-Aug-2007