Corporate Responsibility - a key to success?

Only a few decades ago many participants in the debate argued in tune with Milton Friedman’s classical view that the primary and perhaps sole purpose and responsibility of the corporation is to maximize profits. Today, the debate has turned around to a much more sophisticated discussion. Is it possible that being ethical and proving sustainability in all business operations, actually enables profitability? It could be.

A voluntary based concept
Corporate Responsibility (CR) has indeed been a subject for discussion since it originated. However, the debate on what CR actually entails has gained even more attention. The concept may involve a range of different strategies and policy documents – from the obvious need to follow the law to the extravagant environmental campaigns. As it is a mainly voluntary based concept companies are executing different strategies, all depending on the energy and enthusiasm for doing good by doing well.

UN Global Compact and reporting needs
The importance of CR has gained momentum in the establishment of different international networks, such as the Global Compact which was initiated by then UN Secretary-General Kofi Annan in 1999. He called on business leaders to embrace and enact within their own corporate activities ten core principles derived from universally accepted agreements on human rights, labour, the environment and anti-corruption. Along with increased attention for new strategies, policies and global networks follows a larger reporting needs. It could seem frightening at first, but as any other consideration to sustainability, the proof is in the results. It might appear as the Corporate Responsibility jungle. Nevertheless, throughout the past decade several companies have shown that engaging in CR may indeed prove to be positive on many accounts.