Social responsibility in business and finance refers to the ethical and moral obligations that organisations have towards society and the environment, beyond their primary goal of making profits. It encompasses a commitment to act in a way that benefits not only shareholders but also the broader community, including employees, customers, suppliers, local communities, and the environment.
Socially responsible businesses strive to minimise their negative impact on the environment. This may involve reducing pollution, conserving resources, and adopting sustainable practices in production and operations. This also involves contributing resources, whether financial or in-kind, to support social or environmental causes. It may include donations to charities, community development projects, or disaster relief efforts.
Socially responsible businesses actively engage with local communities. This could involve supporting local schools, sponsoring events, or participating in initiatives that benefit the community. Furthermore, businesses committed to social responsibility invest in the well-being and development of their employees. This includes providing fair wages, safe working conditions, opportunities for growth, and a healthy work-life balance.
Businesses that focus on social responsibility value diversity and inclusion in the workplace and respect human rights and adhering to international labour standards.
Socially responsible organisations may measure and report on their social and environmental impacts. This can include metrics related to carbon emissions, community development, employee satisfaction, and more.