Corporate Social Responsibility is the mandate that a company follows in order to abide by the different environmental laws and issues in society. Corporate Social Responsibility is incorporated into the company's business model. A lot of factors are considered in creating a company's Corporate Social Responsibility policies. These factors differ for each company, depending on the field that the company is in.
Corporate Social Responsibility deals with satisfying the three P's. These three P's are namely the people, the planet and the profit of the company. In order to have a successful Corporate Social Responsibility policy, the three P's must be satisfied.
Here are the three P's and how they relate to a company's Corporate Social Responsibility:
- People. This aspect of Corporate Social Responsibility must meet and address the social issues of society. All the effects of the company's activities must refrain from having a negative impact on society. This includes the community surrounding the business site and the employees of the company. In creating Corporate Responsibility, you must not only think about present society but the future generations as well. Other subjects that must be covered in this aspect are social marketing ethics and corporate ethics within the workplace.
- Planet. This is another aspect to consider when creating a Corporate Social Responsibility policy. The effects of the company's activities must not have a negative effect on the environment. Environmental laws must be followed in every aspect of the company. This includes manufacturing of materials and waste disposal. Another subject that can be tackled is climate change and bio-diversity and how the company keeps up with the most relevant issues and how they improve their business ethics to cope with environmental changes. It is also important to be updated on the latest environmental issues.
- Profit. In any business, profit is important in order for a business to be called successful. This is another aspect that is considered when creating a Corporate Social Responsibility program. You have to make sure that while abiding by the rules of the environment and society, your company is still earning profit from the activities being done. By doing this, you are satisfying society as well as the investors of the company. Take into consideration the accounting aspect of the business when creating a plan for Corporate Social Responsibility.
These are the three P's and how they help define Corporate Social Responsibility. These are the three aspects that must be satisfied in order for a Corporate Social Responsibility plaan to be truly effective for both society and the company. There are still some sub-groups that must be taken into consideration. This means that there are still a lot of branches that are under the three P's. Every branch of the company must be able to commit and abide by the dictates of Corporate Social Responsibility.