Sustainable development through CSR
Answers
Sustainable development and corporate social responsibility are closely related business concepts that have greatly affected corporate governance in the early 21st century. Sustainable development involves the use of environmentally responsible and efficient operational practices that preserve environmental resources crucial to your long-term business success. Corporate social responsibility, or CSR, involves balancing corporate citizenship and environmental responsibility to give back to the communities in which you operate.
Emergence
The foundation for sustainability and CSR have been around for along time. However, they have taken on new meaning in the early 21st century. Due to prominent business scandals, such as the accounting fraud involving energy giant Enron that contributed to its December 2001 bankruptcy filing, and increased emphasis on environmental preservation, the public pays more attention to company practices. Companies are becoming increasingly aware that operating in a way that benefits society now and in the future can earn favor with core customers, white ignoring expectations for responsible activities can lead to negative public relations, boycotts and general backlash from communities in which you do business.
Stakeholders
To achieve full congruence with these areas of responsibility, a company must operate with fairness and honesty with customers and suppliers, give back to and actively participate in local communities, and value employees, while earning profits for shareholders. Meeting expectations of each of these stakeholder groups is a tall order, and companies at times have created jobs specifically in CSR to emphasize its importance.