A socially responsible business (SRB) is a generally for-profit venture that seeks to leverage business for a more just and sustainable world. The objective of the SRBs involves more than just maximizing profits for the shareholders; it is also about creating positive changes and making valuable contributions to the stakeholders such as the local community, customers, and staff. In other words, the SRB is both profit-oriented and socially responsible as these companies seek to make financial gains, and at the same time, aim to improve the well being of the community. In doing so, the businesses engage in the voluntary initiatives with the aims of improving in various areas ranging from the social to environmental aspects of the society.
The concept of SRB is considered to be the highest level of involvement between the company and the community in which it operates. It holds a similar concept to Corporate Social Responsibility (CSR) in terms of having a common goal to make positive contributions, minimizing harmful effects, and being a force for good in society. The main difference is that the SRB goes beyond these activities and ultimately aims to create a market space for itself. It can be achieved through forming partnerships and alliances with the local community and collaborating with groups such as non-governmental NGOs. The SRB prioritizes a socially responsible activity and demands to create a long term relationship with their community.
CARLEN PARTNERS | WHAT IS A SOCIALLY CONSCIOUS BUSINESS?