What is a responsible business?

There a strong movement demanding that the business sector accepts it’s responsibility towards all stakeholders (people, planet, society, customers, supply chain and shareholders) rather than just shareholders.

Essentially, this triple responsibility (people, planet and profit) is called stakeholder capitalism. Other descriptions include conscious capitalism, inclusive capitalism, purposeful capitalism and responsible business. We prefer "responsible business" as it more clearly and aptly defines what is required of the business sector - taking responsibility towards people and planet issues as well as the responsibility to make a profit.

The urgent adoption of responsible business is now essential

Responsible business (stakeholder capitalism) means moving away from the predominant focus of the last 40-50 years on shareholder value (maximising corporate value). Companies making decisions to improve profits in the short term, over an extended period, will eventually damage the company’s long-term value, the planet, people and society at large.

Responsible Business

We are looking to advance the concept of a universal adoption by businesses worldwide of a purpose-led, responsible and holistic strategy focussed on achieving long-term and sustainable value for all stakeholders, employees, shareholders, the supply chain, society and, of course, the environment. Particularly, with regards to climate change, there is no option open to the business sector.

We know it is a difficult to do but it is not a difficult decision

IWe know that for some C-suites, it is a difficult choice between a stakeholder focused strategy and shareholder focused strategy where “success” is measured by profit and shareholder value.

Perhaps by understanding that triple responsibility (people, planet and profit) is a responsibility and not a choice, may make the decision easier to make.

People and planet issues are a responsibility and not a choice

But let’s make it easier for these 20^th century capitalists. It’s actually not a choice, it’s a responsibility to change and in the medium term you will have no alternative but to change. Responsible business will survive in the long-term, many irresponsible businesses will not.

“If you do not change today, what makes you think you will change tomorrow”

Unless the business sector accepts it has a responsibility towards people and climate issues, particularly with climate change, the world as we know it today will not exist in 50-100 years, certainly sooner for many disadvantaged people and regions.

What is a Responsible Business?

A Responsible Business is a:

workplace where its people accept that people and planet issues and making an ethical profit are a responsibility not a choice.
place where everyone, regardless of position, plays their part in helping to make the world a better place to live and work.
sustainable business where the long-term future of its people, of society, and of the planet combined with sustained and ethical profit is part of the over-riding strategy of the business.
workplace where people are fairly paid, happy and engaged in their work, where well-being is prioritised, where their work is purposeful and their actions respectful of the world we live in.

Further reading;

Responsible Business: CIPD https://www.cipd.co.uk/news-views/viewpoint/responsible-business#gref

Responsible Business Tracker; helping business find out how responsible they are. BITC https://www.bitc.org.uk/the-responsible-business-tracker/

People and planet issues as well as making an ethical profit is a responsibility and not a choice.

WE ARE A NOT-FOR-PROFIT ORGANISATION WITH A PURPOSE TO ENCOURAGE AND EMPOWER RESPONSIBLE BUSINESSES TO HELP MAKE THE WORLD A BETTER PLACE. OUR VISION IS TO MAKE RESPONSIBLE BUSINESS COMMONPLACE BY 2030.

All our materials are open source and are free for you to use as you see fit.

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