Social Innovation W8

 What is Corporate Social Responsibility?

It is a management concept that describes how a company contributes to the well-being of communities and society through environmental and social measures. 

>CSR = social accountability

*Reviewing the United Nations 17 Sustainable Development Goals is a good place to start.

Companies should embrace CSR because:

1. It improves customer's perception of your brand
2. It attracts and retains employees
3. It increases your appeal to investors.

There are four types of CSR:

1. Environmental efforts
2. Philanthropy (donate money, products, or services)
3. Ethical labor practices
4. Volunteering

When identifying and launching a CSR initiative, involve your employees in the decision-making process

If decisions [about CSR] are made behind closed doors, people will wonder if there are strings attached and if the donations are really going where they say

What to avoid:

1. Don't choose unrelated initiatives
2. Don't use CSR as a marketing scheme
3. Don't wait for the industry to catch up

Companies that can prove your CSR is legit:

1. B-Corps
2. ISEAL code compliance
3. Sustainability Accounting Standards Board (SASB) standards

*ESG = environmental, social, and governance

Other CSR certification programs include:

SA8000 Social Accountability Standard: An auditable certification that encourages businesses to adopt practices that promote fair and decent working conditions.

Business Social Compliance Initiative: A social compliance certification that allows companies to ensure fair workplace practices across its entire supply chain.

SEDEX SMETA: A social compliance audit program that helps businesses ensure the ethical and responsible social and environmental performance of their sites and suppliers.

ISO 14001: A certification that implements an environmental management system to improve a company’s environmental stewardship.

ISO 45001

*Profit is dependent on people and people are dependent on planet

Equity, Environment, Economy is the same as people, planet, profit

Benefits of sustainability in business:

1. Increased revenue
2. reduced energy
3. reduced waste
4. reduced materials
5. increased productivity
6. reduced turnover
7. reduced risks

*sustainabilityadvantage.com is free

*sustainability is right in the middle of economic, environmental, and social = the triple bottom line

*Everything comes from nature so society depends on the environment and the economy is a by product of society.

We are all dependent on photosynthesis

Social Impact Archetypes:

1. Shareholder maximizer (focuses on regulatory and reputational risks
2. Corporate contributor
3. Impact integrator
4. social innovator

>B-Corps are mission driven companies that balance purpose and profit

  Harvard University found that The world average pay ratio of highest paid to lowest paid employee is 144:1, but 6:1 for B Corps.

Now capitalism has been responsible for every major innovation that's made this world a more inspiring and wonderful place to live in.