A socially responsible business (SRB) is a generally for-profit venture that seeks to leverage business for a more just and sustainable world. The objective of the SRBs involves more than just maximizing profits for the shareholders; it is also about creating positive changes and making valuable contributions to the stakeholders such as the local community, customers, and staff. In other words, the SRB is both profit-oriented and socially responsible as these companies seek to make financial gains, and at the same time, aim to improve the well being of the community. In doing so, the businesses engage in the voluntary initiatives with the aims of improving in various areas ranging from the social to environmental aspects of the society.
The concept of SRB is considered to be the highest level of involvement between the company and the community in which it operates. It holds a similar concept to Corporate Social Responsibility (CSR) in terms of having a common goal to make positive contributions, minimizing harmful effects, and being a force for good in society. The main difference is that the SRB goes beyond these activities and ultimately aims to create a market space for itself. It can be achieved through forming partnerships and alliances with the local community and collaborating with groups such as non-governmental NGOs. The SRB prioritizes a socially responsible activity and demands to create a long term relationship with their community.
Approaches
Since the SRB greatly requires collaboration between business sector and the local community, it is therefore crucial for the businesses to be socially aware of the local customs, culture and specific details of that environment. Here are the examples of three approaches in implementing the concept of SRB, which would help in forming a partnership between the business and not-for-profit sector. 1. Gathering background and on-the-ground information It is essential for the businesses to access information to be able to understand the social norms, culture, rules and business practices of that particular environment. This can be done through searching on the Web sites such as BBC News and The Economist. Moreover, in order to gain an insight into the local areas, accessing information and analysis from the organizations such as UN department and non-governmental (NGO) is also of importance as these organizations can provide representatives and local contacts as well as highlight the areas of assistance needed at the site. 2. Finding an organization to form a partnership This approach is focused on forming a relationship and working with the business partners to exchange ideas and develop a socially responsible project in the local community. 3. Developing scenarios After collecting necessary information, creating scenarios is a way of identifying the chances and alternatives to see the potential of the business’s decisions. This is a process where the analysis of the local community is used to discover the strengths, weaknesses, opportunities, and threats. These data then will be used as a guideline to predict the viability and practicality of the business plans.
Environmental sphere
Environmentally, the SRB integrates the activities such as protecting the environment by reducing waste and using natural resources in an effective and sustainable way.
The partnership between Motorola and the Environmental Protection Agency (EPA) is one example that demonstrates the socially responsible practices. Motorola, a US multinational telecommunications corporation, has been voluntarily participating in the EPA WasteWise project.
The WasteWise project is divided into three main areas: waste reduction, recycling, and manufacturing recycled products. In regards to waste reduction, for example, Motorola has illustrated a clear set of objectives, stating that the company's goal is to reduce waste by 10% by 2016, compared with 2011 numbers. Along with that, there are also other objectives and statistics such as year-over-year-change to show the process. As a result, Motorola has contributed to the society in a positive and significant way. For instance, the company is reported to have successfully recycled more than 80 percent of waste across different sites.
Social sphere
The Body Shop, a global leading cosmetics and beauty brand, is well known for proactively being a force for good and creating many positive changes to the society. The Body Shop has been collaborating with various organizations such as ECPAT and NGOs to combat challenging social issues.