Being Profitable and Socially Responsible

Sustainability is an extremely powerful idea for business organizations. Even though it is a well known concept, not many companies are effectively working towards being a profitable yet responsible business. There are several organizations that still believe in following the “end of pipe” corporate social responsibility (CSR) model. They prefer addressing environmental and social issues at the end of all activities and with minimal thought. With the current instability of the global economy in many wealthy countries, organizations cannot afford to overlook the concept of CSR and sustainable business. Given the present economic scenario, if an organization wants to maintain a good standing, it needs to focus on wealth creation while reducing harm to society and the environment. Sustainable businesses should not only reduce potential harm to the environment but also utilize the latest technology for smooth functioning of their business activities. The concept of sustainability goes beyond just good work. It also includes sound practices of risk management, effective corporate governance and a focus on long term gains. In the last few years there have been serious protests against environmental damage caused by business operations. This has led various companies to initiate good work by accepting a sustainable business model. According to experts, when the interest of society and business overlaps, it’s a win-win situation for all. The integration of CSR and sustainability can help organizations become more successful. Several sustainable businesses are turning this social responsibility into opportunity. It has been proved that sustainable businesses can outperform their counterparts during financial crisis by 15%. It is a challenge for business organizations, especially those that promote sustainability, to make this concept interesting for their consumers. There should be no hindrance in the interaction between the organization and the community, government and society. If a company manages to perform well with this concept, it will not only increase its shareholder value but also contribute to the development of the society in which it operates. A sustainable business can help in building trust and a strong reputation in the market.