Businesses are under scrutiny at all times for a variety of reasons. One reason is that companies are often considered responsible for many of the world’s problems. For example, businesses are often blamed for causing environmental damage, exploiting workers, and contributing to social inequality.
There is a lot of evidence to back up these claims. For example, a study by the University of Manchester found that businesses are responsible for about 60% of global greenhouse gas emissions. Another study by the Unicef Institute found that child labor is most commonly used in industries dominated by businesses. And research by the Institute for Economic and Social Research has shown that businesses are the main drivers of income inequality.
Businesses have a responsibility to society. But what should companies prioritize when it comes to their commitment?
There are many different ways to answer this question. Fortunately, businesses can develop strategies in these specific areas.
Workforce Labor Responsibility
Workers are the lifeblood of any business. Without employees, companies would not be able to function. This is why businesses are responsible for ensuring that their workers are treated fairly and given good working conditions.
Businesses can take responsibility for their workforce by ensuring they are paid a living wage. A living wage is an hourly rate that allows workers to cover their basic needs, such as housing and food. The living wage is different from the minimum wage, which is the lowest hourly rate that businesses are legally required to pay their workers.
The living wage varies from place to place, but it is usually higher than the minimum wage. For example, the federal minimum wage in the United States is $7.25 per hour. The living wage for a single adult in New York City is $15.42 per hour. In Los Angeles, it is $13.34 per hour.
Paying workers a living wage is good for business. Studies have shown that employees paid a fair wage are more productive and have lower absenteeism rates.
Businesses must also be aware that they are not violating any labor laws. These laws vary from country to country, but they all aim to protect workers from exploitation.
There are many labor laws, but some of the most important ones relate to minimum wage, hours worked, and health and safety. Businesses that violate these laws can be fined or even shut down.
Environmental Responsibility
Businesses have a responsibility to protect the environment. This means reducing pollution and wastage and using resources sustainably.
Businesses can reduce their environmental impact using renewable energy, such as solar and wind power. They can also reduce their energy consumption by making their buildings more energy-efficient. And they can reduce pollution by using environmentally-friendly manufacturing processes.
Sustainability is good for business. It can save companies money and make them more attractive to consumers and investors. If you want your business to be more eco-friendly, you can partner with experienced environmental consultants to help change your operations.
Businesses that don’t take responsibility for their environmental impact are increasingly being held accountable. For example, in 2015, the State of California sued Volkswagen for cheating on emissions tests. The company was forced to pay billions of dollars in fines and settlements.
Societal Responsibility
Businesses have a responsibility to society. This means contributing to the well-being of communities and helping to create a fairer world.
Businesses can take responsibility for society by investing in social programs. These programs help people in need, such as the poor, the sick, and the elderly.
Investing in social programs is good for business. It can help companies attract and retain employees and make them more attractive to consumers and investors.
Another way businesses can take responsibility for society is by ensuring that their products and services are accessible to everyone, regardless of income. This includes offering affordable prices, providing financing options, and accepting government assistance programs.
Making products and services accessible to all is good for business. It helps companies tap into new markets and increases customer loyalty.
Customer Service
Businesses have a responsibility to provide good customer service. This means responding to customer inquiries and complaints, providing accurate information, and resolving problems promptly.
Businesses that provide good customer service are more likely to retain and attract new customers. They are also more likely to earn positive reviews and word-of-mouth recommendations.
It will be a standard for the business to continue providing good services for the customers and their own sake.
Final Thoughts
Businesses are responsible to their employees, customers, shareholders, and the planet.
Environmental impact is one of the things that businesses should protect. Business owners should also do sustainability for the company to last longer. And finally, societal responsibility means that companies should help create a better world.
