Social responsibility is shown and practiced when a business does activities that benefit and uplift the society around them, while also doing profit-making activities. You’re socially responsible if you’re able to balance the two, equally important things. Making a profit is the common objective of all business. But doing activities that benefit the society around you is also very important. In order for a business to operate effectively and efficiently, they need to be able to have a good relationship with the environment and the society in which they operate. A business’s ability to be socially responsible can also be used as a means to measure their overall performance.
Social responsibility basically means that it’s the business or company’s duty to behave and act in the best interest of the society they function in and the environment in general. When it comes to businesses, social responsibility translates to corporate social responsibility, also known as CSR. This is different from ISR, which is individual social responsibility, which is your duty as a person to do right by the environment around you. CSR is a part of the business model of many major corporations.
How does CSR work?
When it comes to investing, many investors tend to look at the company’s social responsibility status. They look how socially responsible a company is as a deciding factor to whether or not they should invest in the said company. If you’re actually dedicated to being socially responsible, it can reap benefits and even profits in the long run! Your social responsibility status is what draws in customers and inspires investors to invest. Being socially responsible can give you a really good reputation. And consumers tend to trust companies with good reputations more. This will also help you when it comes to business competitions around you. If your social status is higher than that of your competitor’s, then chances are you’ll have more customers as well as investors willing to invest.
How does a single person go about being socially responsible?
ISR depends completely upon the individual and what he or she is willing to do. You can express your social responsibility by being more active in the community. You could do this by helping out more by volunteering, donating, and showing up where you can or you could take on a more prominent role and help with solving some of the community’s problems. All communities are constantly developing. Similar to how we’re constantly developing. Communities are made up of individuals like us, who want the best for the environment they live in and the people they live with. ISR is all about doing your part, and helping out where you can to build, grow, and better your community.
Concerns regarding social responsibility
A shocking number of people still believe that businesses shouldn’t necessarily have a social conscience. Social responsibility originates within the core of a person’s being. There are different kinds of people and how socially responsible you are, whether in terms of CSR or ISR, comes from what you believe to be right at your core. Some business experts consider social responsibility as a moot point as the actual point of being in business is to make a profit above all else. But what’s the harm in also being socially responsible if all it can do is good for both the society, as well as the business?
There are various different ways in which a company can be socially responsible. If you’re a fast food chain, you could use organic products from local farmers to make your products. That’s just one example. The ways in which you can help the community around you are not limited. The only limitation here is the individual mindset and the willingness to help.