Improving Performance and Profitability

Business executives and boards of directors are becoming increasingly aware of the importance of corporate responsibility. Governments, communities, shareholders and investors, customers and employees are all expecting companies to conduct their business in a fair and ethical way. Stakeholders now expect engagement and responsible business practices. An increasing number of well-informed stakeholders with instant access to information are ready to use their influence to reward companies they perceive to be responsible. The stakes in terms of competitive advantage and risk to corporate reputation are high.

Business executives realize that a new corporate responsibility strategy is needed to respond to rising expectations from stakeholders. A responsible business strategy creates shareholder wealth while meeting stakeholder expectations. Boards of directors and senior management are attempting to incorporate stakeholder opinions, expectations and concerns in business decisions, operations and products in order to improve performance and profitability. These forward thinking executives don't differentiate between their core business and corporate responsibility.

They:

1. Integrate the two and create competitive advantage;
2. Respond to rising expectations by changing their business strategy and practices; and
3. In doing so, they prove that there is no dichotomy between profit and responsible business conduct.

Self-regulation serves both business interests and the public good. Responsible and ethical business activities can be undertaken with an eye on shareholder wealth as well as stakeholder welfare. The two need not be at odds. Leading-edge corporations pursue business success within the bounds of law, ethics and fairness, while taking responsibility for their impact on society and the environment. It is in the long-term interest of their shareholders that they do so.

Making corporate responsibility (CR) work involves:

•  Knowing what the various interpretations of CR are;
•  Adopting a clear position on the CR spectrum;
•  Ensuring support from management;
•  Articulating what responsibility means to the company; and then
•  Making it work through a disciplined and consistent strategy.

In order to help companies improve their CR strategy, Brown Governance Inc. conducts Corporate Responsibility Audits for organizations in all sectors. Based on our exclusive and proprietary benchmarking tool, Brown Governance will customize your CR Audit and benchmark your efforts against leading edge standards and your peers.