In the past, companies only needed to provide an excellent product and great service to keep customers, clients or members coming back. In today’s modern business world, that’s not enough. People are increasingly drawn to companies that recognize the importance of being socially conscious. Companies that incorporate social responsibility into their business model prove that a dedication to these principles goes a long way, both for the cause and their reputation.
Corporate responsibility is a form of corporate self-regulation that, if adopted, is a core tenet of their business practices. Thus, all actions taken by the company are filtered by asking a basic question, “Are we being socially responsible in our business decisions and actions?” According to an Academy of Management Review article, many corporations are engaging in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law."
Traditional core tenets still remain the standard; such as to increase long-term profits through positive customer experience, and incorporate high ethical standards to reduce business and legal risk. However, corporate social responsibility strategies go beyond the standard by encouraging companies to have a positive social impact on consumers, employees, investors and communities.
When a customer, client or member is aware a business is actively engaged in corporate social responsibility and they choose to support that business, the two (in essence) have a social partnership that benefits an individual, an organization or a community. Technically, they are invested in each other. It may only be one transaction, or it could ultimately translate into a long-term relationship.
Today, there is a growing pool of investors seeking to invest capital in socially responsible businesses. Socially responsible investing, or ‘social conscious’ or ‘sustainable investing’ is any investment strategy that seeks to consider both financial and social return. Generally, socially responsible investors support corporate practices that have a positive impact on society.
There are several motivations for sustainable or socially conscious investing, including personal values and goals of the corporate mission. Sustainable investors aim for strong financial performance, but also believe that these investments should be used to contribute to advancements in environmental, social and governance practices (or ESG).
Socially responsible investing, based on social ideals, is gaining ground and is generally fueled by younger investors and women. Even though it isn’t mainstream yet, it’s here and it’s rapidly expanding.
In the United States, at least $7 trillion is invested in strategies focused on environmental, social and corporate governance causes, according to Envestnet PMC. That's up from $3.7 trillion in 2012 and $639 billion in 1995.
TrikleTrade is a marketing platform and virtual bulletin board that encourages social ideals through our many services and activities. Our mission is to connect people who want to inspire and be a part of positive change. People that invest in our effort, invest their time, their expertise and their goods, for the benefit of others. We offer this platform as our way of being a socially responsible corporation.