The definition of Social Responsibility based on Investopedia.com “is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.”
Many people can say that these days being socially responsible is a Marketing Strategy. After all, our primary responsibility is with our Shareholders. But more and more, we realized how it is in the best interest of the companies to be involved in the wellbeing of the Stakeholders.
Big companies are taking a leadership role in social progress, but the question is, how realistic is it to achieve it? As an example, we review various articles from the Harvard Business Review and its publication title “How Global Leaders Should Think About Solving Our Biggest Problems.”
The Davos Switzerland World Economic Forum and its goal to convocated the global leader from business, government, and civil society is an example of the intention to partner and trying to find solutions. At the forum, hundreds of millions of dollars will be committed to public-private partnerships to address urgent challenges such as climate change, poverty, clinic diseases, plastic in the ocean, and so more. They also talk about how quickly they get discouraged, and the goal selected fails.
But, as a business strategy, there is a whole market in need of attention. Local solutions solve global problems. The partnerships between the private sector and the local governmental institutions added to the understanding of the needs of the stakeholders can create a more significant impact in their communities.
As a Business, there is money to be made. There is also money to be lost because social failure can suppress corporate growth and profitability. A great example of Social Failure is currently happing by the pandemic COVID-19. The world economy is in stand by caused by no movement. No people producing, means no people expending, meaning no economic progress. We all in this, and we all affected.
So, how do we achieve an effective strategy for corporate social responsibility with the help of the local government?
Here is an idea,
Identify the region that affects the performance of our company
Establish a common goal
Appoint the team
Contact nonprofit organizations
Establish governance, structure, guide, facilitate, and monitoring progress.
Our goals as leaders, managers, and responsible citizens are to gather resources, generate knowledge, and focus on our goals. We want to create value for the stakeholders and be a respected leader in social progress.