Socially responsible companies
- Dossier
- Jul 24
- 8 mins
Companies have a mission to contribute to social transformation, and one of the main ways to achieve this is by fostering the fulfilment of their employees. Therefore, personnel management policies should include elements that support both professional and personal growth. It is crucial for employees to understand how their work contributes to a greater, shared purpose.
They say that one day a passer-by approached several workers to ask what they were doing. The first worker said he was “laying bricks”, the second said he was “building a column”, and the third proudly proclaimed he was “building a cathedral”. Paradoxically, although all three workers were performing the same task, the purpose, meaning and significance they each attributed to their work were radically different.
Similarly, companies can focus solely on generating profits for their shareholders, a critical element for their viability, or they can enrich their mission by incorporating goals related to creating social value. Companies can and should contribute to meeting the needs of their communities, promoting environmental sustainability and participating in charitable projects. Ultimately, they can support societal transformation and often become paradigms and sources of inspiration for others.
One way that companies should contribute to social transformation is through nurturing the fulfilment of their employees, as advocated in the Manifesto of the Fundació Factor Humà. Social engagement should start within the company itself. Therefore, personnel management policies should include elements that foster the growth and development of employees, both professionally and personally. Implementing these policies not only contributes to society but also increases professional commitment to the institution.
An inspiring purpose is one of the most crucial factors for professional commitment.
Professional commitment is among the most powerful management tools in business; numerous studies show its correlation with improved economic outcomes, productivity, reduced turnover and increased customer satisfaction. While commitment is influenced by various factors, one of the most crucial is the presence of an inspiring purpose that imbues individuals’ work with transcendent meaning. It’s essential for this purpose to remain consistent over time, and for the company’s daily practices to align with it.
In addition to internal policies, companies have the opportunity to spearhead social innovation by developing products and services that directly tackle major social challenges. Many companies are now channelling their investments into projects that promote social equity, improve access to education, healthcare and protect the environment. This not only enhances their corporate reputation but also appeals to investors seeking to generate social or environmental benefits alongside financial returns, presenting a substantial business opportunity. According to the Global Impact Investing Network (GIIN), the impact investing market has experienced exponential growth, pointing to a rising interest among investors in supporting initiatives that drive positive change in the world.
Five areas for improvement
Companies’ capacity to create social value hinges on several factors, which we can summarise into five key areas. Firstly, a robust corporate culture aligned with social responsibility can have a positive impact across all dimensions of the company, from decision-making to interactions with customers and communities. Cultivating a culture of ethics, respect and sustainability is essential for companies to generate a lasting social impact.
Secondly, employee education and ongoing training should cover not just technical and professional skills, but also aspects of social responsibility and sustainability. Training programmes in ethical leadership, sustainable resource management and responsible business practices can empower employees to drive change within their organisations. This not only boosts employee engagement and job satisfaction, but also enhances the company’s capacity to make a positive impact on society.
Thirdly, transparency and accountability are essential for socially responsible companies to uphold the trust of their stakeholders. This includes accurately and accessibly disclosing financial, social and environmental information. Transparency boosts the company’s trust and reputation, allowing consumers, investors and other stakeholders to make informed decisions and support companies aligned with their values.
Fourthly, partnering with other companies, non-governmental organisations and governments can magnify the social impact of business initiatives. Collaborating with these stakeholders allows companies to pool resources, expertise and networks to address complex issues more effectively. It also enables them to learn from the best practices and innovative approaches of their partners, speeding up the development and implementation of effective solutions.
Finally, public policies and government support play a crucial role in this context. Encouraging companies to adopt responsible and sustainable practices through regulations and tax incentives can speed up the transition to a fairer and more sustainable economic model. Collaboration between the public and private sectors is essential for tackling global challenges and creating a more equitable future.
The future of companies is closely tied to their capacity to adapt and make positive contributions to society. A growing trend is that of B Corporations, companies characterised by four key elements: a purpose with a positive social impact, the legal requirement to consider interests beyond financial ones, certification of management standards, and, finally, interdependence as an active member of the community. These companies demonstrate that it is possible to blend profitability with social purpose, thereby making a positive impact on their communities.
Integrating social responsibility into the core of business strategy isn’t just an ethical choice; it’s necessary.
In summary, companies not only have the capacity but also bear the responsibility to contribute to social transformation. By doing so, they yield benefits for their shareholders and foster a positive impact on society, setting a fresh benchmark for business success in the 21st century. In an increasingly interconnected and mindful world, companies that embrace a holistic approach to their impact are better positioned to thrive and compete.
To achieve this, it’s crucial for the professionals within these organisations to understand their role in contributing to a meaningful and shared purpose. Drawing a parallel with the anecdote that introduced this article, it’s essential for company professionals to realise that they are involved in “building a cathedral”. Integrating social responsibility into the core of business strategy isn’t just an ethical choice; it’s necessary for long-term sustainability and success.
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