Corporations and its officers are often portrayed as fat cats and while this is an accurate depiction of some, others are working against that image through corporate social responsibility (“CSR”), the act of giving some profits back to society. However, the era of CSR is coming to an end and should be replaced by a new method, sustainable business; a model that balances social and environmental protection with corporate profit to enlarge the overall pie instead of dividing it between the environment and economics.
This method is both preferential and realistic. Currently CSR is often seen as an expense, a ploy to gain goodwill, or an attempt to do some good at the detriment of the company. As such, CSR efforts are often the first to be cut during an economic downturn. This framework also lends companies to donate money to sensational issues rather than genuinely seek to better the planet. Under sustainable business, companies will seek ways to reduce impact on the Earth while simultaneously reducing cost. These practices will be both economically and environmentally sensible, ensuring their survival even during a recession.
This model is realistic as shown by Ray Anderson and his carpet company Interface. They have been able to reduce net emissions by 82% while also cutting costs. The goodwill gained helped to double the company’s profit. Through recycling and using renewable energy, companies will be able to cut costs in the long run, improve performance through goodwill, and lead the way to a brighter tomorrow.
