The business of society building

Corporate. Social. Responsibility. Three words that, each on their own, are perfectly intelligible but, until recently, when placed together as a phrase became like something from a Lewis Carroll poem: nonsense. “Corporate social responsibility” as a phrase has been as oxymoronic as “gourmet cheese in a can”, “wise lycra fashion choices” or “must-see reality TV”. Today, however, corporate social responsibility (CSR) not only makes perfect sense, it is imperative to our way forward as a society.

What is it?

In truth, CSR is about engaging with reality, the reality of the nature of a corporation. Dr Attracta Lagan is a leading Australian business ethicist who has advised boards and CEOs in both the corporate and not-forprofit sectors. Lagan says, “Businesses have powerful impacts, social and environmental, beyond financial results, and must design their organisations to deliver better societal social and ecological effects. In fact, this has now become embedded in new reporting guidelines for all publicly listed companies called ESG reporting — environmental, social and governance.”

The underlying principle of CSR is the recognition that organisations must focus on stakeholders, as much as or more than they focus on shareholders. Stakeholders are the employees of the business, the clients of the business, the suppliers of the business, and the overall environment in which the business operates. That environment is not just the natural environment but also the social environment in which the business functions. An organisation that is socially responsible will have a