There are few factors such as Corporate social responsibility, Financial performance
sustainability which an organization has to be accountable for while performing or running
their business activities. Corporate social responsibility refers to a process which focuses to
behave stakeholders of a company or institution ethically and in a responsible manner.
Ethically or responsible explains behaving key stakeholders such as shareholders, employees,
government so on, in a manner considered acceptable according to international norms.
Similarly, the term social incorporates economic, financial and environmental responsibility.
The main aim of sustainability is to create higher standards of sustainable. Corporate Social
Responsibility is a concept that is dominant in business reporting. The obligation of the entity
is to use resources to benefit society, through committed participation as a member of society.
There are few other definitions which describe about the social and environmental impact of
corporate activity when making decision. Many companies are adopting the global reporting
initiative guidelines and triple bottom line to report on economic, environmental and social
issues to demonstrate their socially responsible behaviour (Crowther,Aras, 2008).
A survey conducted by KPMG in 2002 found that 43% of world’s largest 250 Companies are
producing environmental and social reports. It was 35% in 1999. A means of communicating
the social and environmental impacts of organisations’ economic activities to particular
interest groups in society is called corporate social reporting. The reason why organisation
started reporting is people wanted to know more information on waste, air and water and so
on. Since early 1990s, most of the companies started producing environmental reports to
improve and to have positive impact of the entity to among customers, state authorities,
journalists and the press. An entity can have number of benefits from corporate social
responsibility and reporting (Wang &Lin, 2004). Those benefits are as follows
Better recruitment and retention of employee
Improved internal decision making and cost saving
Improved corporate image and relations with stakeholders
Improved financial returns
Sustainability-: Corporate sustainability refers to business strategies which helps to generate
long-term shareholders value along with adding social and environmental values to external
stakeholders. While assessing a company’s performance on sustainability, framework must be
developed to place indicators in context and within which relationships between different
policy goals links between attributes and goals. There are several ways to evaluate the firms
sustainability performance, financial measures, environmental measures, environmental,
health and safety auditing and business’s own practices. There must be provided company’s
operation and financial conditions information first to understand the company’s economic
sustainability performance. Sustainability and corporate social responsibility incorporate the
similar three major areas of environment, society and economy, whereas sustainability
focuses on action, like sustainable practice driving efficiency gains. Sustainability is
awareness which tells that each organisation is surrounded by stakeholders. Sustainability is
transformation and development of the organization as well as creation of its long-term value
based on innovation as well as intellectual and relation capital (Deloitte). There are several
benefits that a business can have from sustainability, some of the benefits are; identification
of the area that creates the organization long term value, effective economic, social and
environmental risks management, business stability relying on good relations with key
stakeholders and so on. Sustainability helps to transform potential threats and risks into
development opportunities for organizations from the public and private sectors (Deloitte,
na).
Triple bottom line-: The triple bottom line is a key system used by businesses to assess
profits through corporate sustainability solutions. The triple bottom line method tells you
to look beyond the traditional bottom line of business to make your business social,
environmental and economic. Social bottom line measures the return
on your business in terms of human capital, including your position in your
local community. Your social benefits are enhanced by fair and rewarding labor practices
and the involvement of the corporate community, can be measured by the impact of your
business activities on the local economy. The Triple Bottom Line approach to sustainability
takes the view that the smaller impact your business has on the environment and the fewer
natural resources you consume, the longer and more successful your business will be.
Controlling your Environmental bottom line means managing, monitoring, and reporting your
consumption and waste and emissions. This is typically the work of your EHS department,
though most sustainable business models also make waste reduction and green policies
corporate-wide values across all levels of management. A sustainability committee is often
required to communicate your sustainability solution and sustainability goals across all
departments. Economic sustainability refers to practices that support long-term economic
growth without negatively impacting social, environmental, cultural aspects of the
community. Business can expand how it understands its position in the current economy with
the help of triple bottom line method (Chamebrlain,na).
Deloitte, na, Sustainability and corporate social responsibility, response to the challenges of
the modern world, https://www2.deloitte.com/ru/en/pages/risk/solutions/sustainability-and-
csr.html
Chamberlain, A, na, sustainability management system: the triple bottom line, ERA
ENVIRONMENTAL Management Solutions, https://www.era-
environmental.com/blog/sustainability-management-triple-bottom-line
Crowther, D & Aras, G, 2008, Corporate Social Responsibility, https://www.era-
environmental.com/blog/sustainability-management-triple-bottom-line
Wang,L & Lin,L, 2004, Making Sustainability Accountable: A valuation model for corporate
performance,
