By Ann Ranson
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-847954.mp3
Dallas, TX –
Social responsibility technically defined is the philosophy that we - all of us - have a responsibility to society. It's being a part of the solution rather than a contributor to the problem. And even though much of what we see and hear is focused on the environment, social responsibility is really much more. It's how we work together in partnership to increase all three bottom lines - as identified in the business strategy known as Triple Bottom Line - which states that every organization has a responsibility to consider the impact on people, planet and profits in every business decision they make.
Even with the economy so soft, now is actually the best time to make money with this approach. A study by the MIT Sloan Management Review called "Does it Pay to be Good?" concluded people will pay more for ethically produced products, such as fair trade coffee or chocolate, products produced with regard to progressive stakeholder relations, advanced environmental practices and respect for human rights.
Conversely people will punish those who do not. And to confirm my contention that social responsibility is easier than most think, the study also found that companies do not have to be 100% compliant to gain favor with the market. Customers want to know that companies are joining forces with them to make the world a better place. Partnership, not perfection, is expected.
How much social responsibility costs depends on the type of business you run, what type of changes you're willing to make, and what your timeline is for execution. According to an article published in the Dallas Morning News last August, Toyota of Rockwall became the first dealership in the country to be certified LEED Gold - one of the highest environmental ratings available, and no easy task. The requirements to become LEED certified are extensive and stringent. In their own words, Toyota of Rockwall started out just wanting to do "the right thing" - which I interpreted to mean building a dealership with less negative impact on the environment. Yet they quickly realized that they were also reducing many of their operation expenses. True, it cost more for them to build but they estimate that they'll recoup those costs within a few short years. In the meantime, doing their part for a bigger cause is paying off.
When asked where to begin with social responsibility, I quote the late tennis player Arthur Ashe: "Start where you are, use what you have, do what you can." None of us can do it all, or do it today. But you can start small: Add recycling bins, support employee community service with matching donations or paid time off, or try entering every meeting with the goal of a win-win outcome - no matter who is sitting across the table. These relatively small actions represent important shifts in focus. And that's what partnerships do: they shift the focus to the bigger, more important issues.
When you act as a partner to make a positive difference, your customers will reward you. As the 2009 Edelman Trust Barometer indicates, the market is looking for companies and leaders who will work together for the common good. Embrace the philosophy of Pepsi CEO Indra Nooyi (new-e) who believes in profits with a purpose and you will become an active partner of the social responsibility community. You will do well by doing good!
Ann Ranson is a sales and marketing consultant based in Plano.
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