Commonly referred to as CSR, each company must adhere to providing CSR to the society they serve. This can be focused on their customers, suppliers and employees. A company cannot simply operate with the single motive of earning profits and achieve their other objectives. They need to systematically plan and allocate resources toward profit creation activities and the wellbeing of their stake holders.
It is important for a business to pay special attention towards their reputation and way of practice when dealing in the industry. there have being many instances when high-end brands were brought down in a split second because they were negligent and did not pay proper attention towards the wellbeing of their suppliers and employees. The best example is Nike’s manufacturers in Bangladesh. Due to their negligence, they had to compensate in millions of dollars and they had to answer to many pressure groups.
The first group of stakeholders that you need to satisfy, is your employee. You may have two or two hundred whichever it maybe you need to make sure that you provide them with good facilities, health cover, a fair number of paid leave days. These are the minimum whereas you can provide various other facilities that will make you seem like a better employer when compared to your competitor. Attracting and retaining highly skilled employees is vital for any type of business. therefore, you need to be updated with the current level of HR concerns and address them on time. In other words, you need to provide a solid reason for key employees to not want to leave the organization.
Another major stakeholder to your organization is your supplier(s). It is important that they are satisfied and maintain a positive attitude toward your organization. This will help when dealing with them and communicating your needs and work that they need to accomplish for the organization. You may have suppliers who are suppling for your competitors as well. In instances such as these, you will need to make sure that the relationship that you have with them is kept confidential and integral always. it would be advisable to treat your suppliers with respect and provide them with economic and social infrastructure if needed. This will enhance their relationship with you and they will be motivated to provide you a better service.
It is important to take care of the surrounding villages that your factories and offices are located in. For instance, you need to be extra cautions about the homes and communities who live near your factories since their lives will be affected if an accident occurs in the factory. In the past, there have being situations where a spillage of chemical gases had cost the lives of innocent families which caused the company to close due to the compensations needed to be paid and the reputation loss.