Norvergence, an environmental agency believes that: “What’s necessary nowadays is the constant readjustment between our environment and the corporate world.”
Can a business world exist with ill consumers and an unhealthy environment? If not, then why various entrepreneurs are still playing on the grounds of Milton Friedman’s theory on corporate social responsibility. It was published in The New York Times Magazine on September 13, 1970, and it states:
“There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays in the rules of the game, which is to say, engages in open and free competition, without deception or fraud.”
We all know that the environment, i.e. animals, plants, air, trees, rivers, lakes, water, and mountain, micro-organism, etc is adversely affected by technological advancement driven by various corporate houses. The environmentalists at Norvergence pulled these areas into mainstream media from the darkness.
Day-by-day, the capability of the environment to sustain the impact of economic development is decreasing at an unprecedented rate.
There is no doubt that industrialization has raised a serious threat to the environment including vegetation, human beings, and animals.
The increasing anger of public and governments against corporate houses that are affecting the environment in both direct and direct ways has led to the rise of “Corporate Social Responsibility (CSR)”. The theory not only touches one area (environment) but it also evolved around other important human aspects.
The term first came in 1970 and generally explains the concept of companies integrating social and environmental concerns in their day-to-day operations or on a voluntary basis. Following Norvergence has clearly explained its 5 dimensions:
Five Dimensions of Corporate Social Responsibility (CSR)
Social: This dimension of corporate social responsibility involves the idea that you should use your business to benefit society as well, in any format. It covers all the areas that come under the relationship between your business and society. Norvergence has experts in its office that guide people in this specific area.
Environment: It refers to how your business or any business practices affect the environment again in any form. Further, what policies you opt for that give benefit to the environment or protect it. For example, some companies use recycled materials for various business operations.
Economic: It covers the financial aspects or how CSR put an effect on the financial part of your company.
Stakeholder: It refers to how your actions are affecting stakeholders (employees, suppliers, and the public). For example: for more productivity, you might increase your working hours but at the same time, you have to consider the impact of it on your employees.
Voluntariness: The areas or actions under it are not prescribed by law but it is based on the ethical values that your company holds.
Many environmental organizations like Norvergence collaborate with various corporate houses to execute these actions.
The obligations and dimensions can be summarized in the following 9 points:
- Improving the quality of life
- Economic development
- Transparency & accountability
- Human rights
- Ethical business practices
- Protection of environment
- Stakeholders’ improvement
- Obligation to society
In today’s times, the knowledge, perception, and evaluation of CSR are very important. Corporate houses should understand their basic social and environmental responsibilities. It is hoped that this article would solidify the notion that protecting the environment or ecosystem comes under the moral ethics of everyone including corporate houses.