Contributing To Social Bottom Line To Improve Financial Bottom line

With the support of ‘Our Singapore Fund’ in Budget 2016, companies should rise up to make giving back a vital and integral part of their business model.

Research show that companies should operate as a responsible corporate citizen.

According to the stakeholder theory, companies should satisfy demands of a variety of stakeholders.

These stakeholders include customers, governments, communities, grassroots organizations, and other civic organizations.

They increasingly expect companies to improve the community and look after the environment.

If a company fails to do so, the stakeholders can withdraw their support and create negative publicity about the company.

The resulting outcomes may affect the company’s sustainability and growth.

As part of the business eco-system, companies should contribute to the betterment of society.

By doing so, it can strengthen branding equity and help companies to expand its market and create a more sustainable operation.

At the basic level, a business should be managed lawfully and ethically. It should not only be doing so but it should also be seen to be doing so in the eyes of the public.

It includes selling of value-added goods and services in a responsible and fair way and promoting equitable creation and sharing of wealth and respect for the rights of its stakeholders and their communities.

There is also an increasing obligation for the business to contribute to sustainable development, a process which is defined by the World Business Council for Sustainable Development to include “the integration of social, environmental, and economic considerations to make balanced judgments for the long term.”

Companies should not be a burden to the community but a nett contributor to its well-being.

They can use their knowledge, competence, and other resources to help resolve a social problem or contribute to the bridging and bonding of communities and building of positive relationships.

In doing so, Professor Michael Porter and Mark Kramer argue that it will improve their competitive advantage because it will create more social values than what an individual, an organization, or the government may be able to deliver to society.

The social capital generated will also strengthen the company’s standing in the community and stakeholders’ support for its business.

As the world increasingly becomes a global interconnected and interdependent village, companies should become more mindful of the shared responsibility for contributing to healthy communities and the environment.

By contributing to the social bottom line, companies can improve their financial bottom line.

Go4It!

I hope this message will find a place in your heart.

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