What is Corporate Responsibility?
The Council defines Corporate Responsibility as a company’s dedication to the belief that the true measure of its wealth is directly linked to its efforts to elevate all stakeholders. Corporate responsibility includes being consistent with financial, social, and ethical principles. This foundation facilitates a relationship between the business, employees, and customers based on shared goals and values.
What are the Seven Pillars?
Corporate Responsibility requires a holistic approach within an organization that embodies consistent work in the following areas: Diversity & Inclusion, Environmental Sustainability, Governance, Global Enrichment, Organizational Health, Philanthropy, and Supply Chain Integrity.
Diversity and Inclusion
Companies that are leaders in this realm are proactively addressing business dynamics caused by : the aging workforce, generational differences, gender, ethnic background, sexual orientation, creative solutions to disability accommodation, and diversity of thought and communication styles. Differing points of view and opinion is crucial to workplace success as differing points of views and ideas can make a company dynamic and capable of adapting to the fluctuating market.
Environmental Sustainability is a commitment to the responsible utilization of the earth’s resources. Many organizations are leading the way for sustainability through the creation of eco-villages, minimizing pollution creation and output, research into green technologies, decreasing their carbon footprint, and developing viable sources of renewable energy.
Global Enrichment is a key aspect of mature corporate citizenship in the 21st century as a majority of organizations are investing beyond domestic operations good example of a global enrichment initiative. Fair Trade aims to encourage businesses to ensure reasonable wages for their Third World suppliers and workers, rather than exploiting these individuals for higher overall profit; businesses that follow Fair Trade initiatives enrich these communities and allow for struggling economies to gain ground.
Governance is the way in which a company’s leaders enforce their code of ethics, mission statement, and policies. Effective governance serves to drive high levels of performance, encouraging and sustaining an environment of trust and employee empowerment. Corporate citizenship loses value without the enforcement of a company’s policy by devoted leadership across the board of a company. With proper governance, initiatives within a company can take shape and make a tangible change to the organization.
The Council for Corporate Responsibility defines Organizational Health (OH) as an organization’s ability to grow and thrive while making the needs of its employees and community its first priority. These include fair wages, benefits, and employee appreciation. Companies with strong Organizational Health have have been consistently shown to have higher market values and employee morale, along with lower than average turnover.
Philanthropy serves as a means to improve the community and world that organizations /companies operate within. Corporate citizenship is essential to any company that is socially responsible and gives back to its community. Community outreach along with financial support should be connected to the core values of the company.
Supply Chain Integrity
Responsible supplier choices involves the extension of the company’s values and high performance standards to those it chooses to do business with. These companies only work with suppliers who uphold the ethical standards for safely producing quality product, while complying with applicable laws involving human rights and environmental sustainability.