Every business owner aspires to grow, expand and make as much profit as possible. Though many go on and release these dreams, few endeavour to give back to the community in which they operate or mind the environment. When an organisation or business engages in initiatives that benefit society, commonly known as Corporate Social Responsibility (CSR), it underlines what the company stands for to its consumers. However, for CSR to be practiced successfully, the organisation must make it part its business strategy.

In developing countries, few firms practice CSR, with the majority of companies claiming they are limited by funds or lack of knowledge on how it can benefit them. Generally, the concept of corporate social responsibility is new to most organisations, especially SMEs, and therefore firms do not understand it.

So, it is important for organisations to develop interest in the practice because CSR policy functions as a self-regulatory mechanism whereby a business monitors its actions in compliance with the spirit of the law and ethical standards. With CSR, the business goes beyond its immediate interests and engages in activities that further social good.

It also aims at embracing responsible corporate actions and behaviour by, for instance, involving in activities that have a positive impact on stakeholders, including consumers, employees, investors or communities, as well as the environment.

Experts argue that while organisations focus on achieving business targets; every company should endeavour to engage in CSR at the same time, hopefully sooner than later. Remember, companies that practice CSR always get the good will of society, especially the communities in which they work.

While practicing CSR, most organisations use philanthropy, which could include monetary or material donations given to communities in which the organisation operates. The donations could be to support causes in education, housing, health, social welfare, environment and arts, among others.

Traditionally, companies were focused mainly on making profits. However, as business and societal dynamics change, companies have had to find ways to endear themselves to the public, meaning that presently organisations need to mind more than just about their owners.

For those firms that want to practice CSR, they need to understand the following dimensions: environmental, economic and social, according to Daffodil International University Journal of Business and Economics.

The environment dimension of corporate social responsibility concerns the impact your business will have on the environment. The goal, as a socially responsible company, is to engage in business practices that benefit the environment. For example, you can choose to use recycled materials for packaging or add renewable energy sources like solar energy to power to your organisation.

The economic aspect is about understanding the economic impact of the company’s operations.

Economic issues have long been overlooked in the discussion on CSR. For many years, this aspect has been widely assumed to be well-managed.

The economic aspect of CSR is often mistakenly taken to be synonymous with financial issues, which is why it has been assumed it is easier to implement than other pillars. However, being economically responsible is not simply a matter of companies being accountable, publishing employment figures and debts in their corporate responsibility reports. The economic dimension of the sustainability agenda should rather consider the direct and indirect economic impact that the organisation’s operations have on the surrounding community and on other stakeholders.

The economic performance of a company has direct and indirect impacts on all of its stakeholders- including its employees, local governments, non-profit organisations, customers, suppliers and the communities in which the companies operates.

For example, good economic performance makes it possible to develop operations for the long-term, and to invest in the development and the well-being of employees.

The employees of the company get salaries from which they purchase goods and services as well as pay taxes. These services fuel the local service industry, government programmes and community activities. All these become important if the company is one of the largest employers in the communities.

The social aspect of CSR is the newest of the dimensions of corporate social responsibility and is getting more attention than previously had.

Many organisations are becoming increasingly active in addressing social concerns. Remember that having social responsibility means being accountable for the social effects the company could have on the community, directly or otherwise. An organisation’s activities affect people within the company or employees, those in the supply chain, the community and customers.

Therefore, it is the obligation of the management to make choices and take actions that will contribute to the wellbeing of society as well as those of the organisation.

The writer is an accountant and a commentetor on business-related issues

Email: vbahizi@yahoo.com