Responsible business club
Corporate social responsibility is a responsibility of the enterprise for the impact of its decisions and activities on the society and the environment. It is achieved through transparent and ethical conduct which contributes to sustainable development and takes into consideration the shareholders’ expectations; it is in accordance with the international norms and it is integrated in the entire enterprise.
CSR is a manner of running business. It is directly related to sustainable development, stimulating the company to consider its financial, social and ecological performances. CSR should be strategically and completely integrated in the company’s business process, the supply chain, the products, as well as the relationship with the clients. CSR perfectly complies with the company’s search for facilitated market access, increased productivity and decrease of the operating costs. Social responsibility is not merely a donation, even though it is of vital significance for the well-being of each community, but it is rather a compensation for the potential effects arising from the company’s business operations, such as: pollution, increased utilization of natural resources, work conditions of the employees and their families’ well-being, corruption etc.
Although social responsibility is, above all, a manner of the enterprise’s acting responsibly in the community, yet, such way of business management brings many benefits.
- Saving: SR practices lead to direct decrease of the operating costs (less waste, energy and materials inputs, efficient utilization of resources, reduction of amortisation costs etc.);
- Improved access to the global market and supply chains; Internationally, CSR is a competitive advantage. Top companies are increasingly requesting from their suppliers to follow the social and ecological standards;
- Access to funds: In certain financial institutions, running a socially and ecologically responsible business is a condition for access to credits, whereas the socially responsible investments movement is continuously growing;
- Risk management: Integrating CSR enables risk projection and quick reaction to the potentially adverse consequences:
- Increased sales: CSR activities are related to values, and the values determine the selection of clients. CSR can provide new and loyal clients which will identify with your activities. The consumers’ responsible conduct is rapidly growing. The company’s social image matters to 29% of the consumers in the EU member states when they decide what to buy;
- Brand development: good reputation contributes to the brand development. 2/3 of the Europeans believe that the responsibility of the private sector to get involved in the social issues is increasing. Around 90% of the Macedonians believe that companies should have a more active role in the process of solving the community’s problems. The reputation of a responsible employer can help attract more qualified and more productive employees;
- Efficiency and enhanced loyalty of the staff; Satisfied and productive workforce is in direct correlation with the increased productivity, decreased number of accidents, improved quality, less frequent replacement of the staff and higher level of loyalty;
- Innovations: CSR increases innovation and frequently requires “thinking outside the box” Many ecological and social innovations arise from SR practices.