Table of Content
1. Why is "people, planet, profits" a more media-friendly message than a triple-bottom-line approach to CSR?
2. On what grounds could the CSR initiatives of a corporation be dismissed as "window-dressing"?
3. What is meant by the term sustainable capitalism?
4. Based on the information in this case and a review of GenerationMS manifesto document, is there any correlation of its proposal to the commonly accepted tenets of CSR?
5. What challenges do you foresee in the broader acceptance of sustainable capitalism around the World?
6. How would you go about introducing sustainable capitalism in your company?
The Triple Bottom Line is a principle which is termed by John Elkington. This principle promotes an overall market performance evaluation focused on three major components are
This is structured to evaluate an enterprise's economic, social and environmental performance (Elkington, J. 2013). This theory suggests that if the company only gives attention to the profit margin from its business and avoids or forgets about the people or the planet, then the business will not be able to afford the costing.
The word People Planet Profit is a reiteration which is simple and easy to commemorate. People tend to remember what they understand easily. So something which gives a clear and can quickly be learned by the people is also a positive media message.
The word Triple Bottom line does give the viewers a clear picture. The word triple bottom line is not as rhythmic or catchy to the people as people planet profit. The main aim of any message is that the audience actually recall and visualize the information and through this, they are encouraged to benefit themselves from that information in their day to day business or where it is necessary. So for a lame man, the rhythmic word or a catchy sentence is more user friendly than a word which does not give them a proper meaning to recall.
Corporate social responsibility is a concept that has been evolving for a long time. But recently, with the global market scenarios, it is vital for an organization to create a good relationship and have certain responsibilities towards their stakeholders can be influenced by the organization's activities. However, most corporations view this term either as free and optional commitments towards society and their stakeholders. It is a method to boost their corporate identity and publicity (Taylor, J., et al., 2018)
So it can be said that if an organization have went far and has implemented fraudulent aspects but on the other hand, they are presenting that they are following the CSR towards the society and its stakeholders then this can be said as window dressing (Connors, S., et al., 2017)
So it can be said that an organization should not only present to its viewers for their goodwill that they are following the corporate social responsibilities but should actually have a certain duty towards the people and the society on which it is doing the business. But due to lack of proper legal consequences, these businesses organizations take it as granted.
There have been immense changes that took place in the industrial sectors. The term sustainable capitalism is a new concept that is emerging recently. Capitalism has significant strengths and is entirely superior to any other system for generating economic activity in a business enterprise. It helps in allocating capital and balancing the market forces.
It is a structure that aims to optimize long-term economic efficiency, introducing market changes to discuss specific requirements while taking into account all expenses and bringing ESG ( economic,social and governance) factors into the cycle of decision making (Drainville, A. C. 2017). It helps an organization to measure performance as well as evaluating both threats and openings. It also motivates the companies to construct a long-term term and competent financial rewards.
Capitalism has shown to be versatile and creative enough to meet the specific requirements in a few countries.
Corporate social responsibility (CSR) is a procedure that the companies use to guarantee that the intention of the business continues to profit the stakeholders of the company. To do so, a company must abide by the four tenets of corporate social responsibility (Ghilarducci, A. C. 2017). These tenets are as follows -
● Economic Responsibility
● Legal Responsibility
● Ethical Responsibility
● Philanthropic Responsibility.
Through the manifesto, Generation Investment Management (GenerationIM) has implemented ways to develop sustainable capitalism. They have taken five plans to establish a system which can help them achieve sustainable capitalism by the year 2020. These plans were taken keeping in mind the responsibility of a company towards society. So it is well evident from the case study and after understanding the five actions that these plans which are taken up by them are correlated with the commonly accepted tenants of CSR (Duradoni, M., & Di Fabio, A. 2019).
Sustainable capitalism is an emerging concept and a totally new thing for the World to accept it. Many organizations have already adapted to this new concept, whereas there is still scope for other businesses to understand the benefit of it.
But there are few challenges that sustainable capitalism faces which need to be focused on, especially when the resources are constrained for the businesses. These challenges consist of momentary dependence on the improvement of the Gross Domestic Product as the sole indicator of development, transforming capital and shifting aside the actual requirements (Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Faezah, J. N., 2020). The other threats are Changing demographics, growing global capital market uncertainty, and rising climate change.
However, even though the current system of capitalism has proved its dominance, it is abundantly evident that most of the forms in which it is practised today do not take adequate account of its influence on society and the World.
Significant research has been done to recognize numerous ways in which sustainability capitalism promotes the creation of value for a business enterprise(Schawbel, D. 2013). It has a beneficial impact on a company and helps to gain profit. A business to sustain for an extended period of time has to adapt to certain changes with the change in the business environment. Sustainability is used by successful organizations to build financial and strategic benefits in the long-run (Boutilier, R. 2017).
A company should adopt three aspects to establish sustainability in the organization and obtain benefit from that sustainable capitalism. These phases are -
● Strategic advantage
● Operational effectiveness
● Compliance and risk management
When business enterprises experience the transition to develop into more sustainable by applying these aspects, it is generally apparent in the organization that this sustainability does not require compensation between productivity and environmental and social changes. Rather it helps to boost the activities and encourage creativity (Di Fabio, A., & Peiró, J. M., 2018)
So it is a well evident fact from various examples that by Incorporating sustainability into the strategy and processes of the business enterprise, the administrators can clearly run a successful and stronger business and the status of the corporation improves for a more extended period of time. This also helps to achieve success.
So if I have to implement it in my company, I will follow the three phases as discussed above and ensure that it is well adopted by my business to provide corporate social responsibility to the society and the stakeholders.
Boutilier, R. (2017). Stakeholder politics: Social capital, sustainable development, and the corporation. Routledge.
Connors, S., Anderson-MacDonald, S., & Thomson, M. (2017). Overcoming the 'window dressing' effect: mitigating the negative effects of inherent skepticism towards corporate social responsibility. Journal of Business Ethics, 145(3), 599-621.
Di Fabio, A., & Peiró, J. M. (2018). Human Capital Sustainability Leadership to promote sustainable development and healthy organizations: A new scale. Sustainability, 10(7), 2413.
Drainville, A. C. (2017). The fetishism of global civil society: global governance, transnational urbanism and sustainable capitalism in the world economy. In Transnationalism from below (pp. 35-63). Routledge.
Duradoni, M., & Di Fabio, A. (2019). Intrapreneurial self-capital and sustainable innovative behavior within organizations. Sustainability, 11(2), 322.
Elkington, J. (2013). Enter the triple bottom line. In The triple bottom line (pp. 23-38). Routledge.
Ghilarducci, A. C. (2017). The Economics of Ethics.
Taylor, J., Vithayathil, J., & Yim, D. (2018). Are corporate social responsibility (CSR) initiatives such as sustainable development and environmental policies value enhancing or window dressing?. Corporate social responsibility and environmental management, 25(5), 971-980.
Schawbel, D. (2013). John Mackey: Why Companies Should Embrace Conscious Capitalism. interview with John Mackey published on Forbes. com on, 15.
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Faezah, J. N., & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249, 119334.
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