Why CSR is Greater than the Sum of its Parts?

Combining the three parts of social equity, environmental responsibility and corporate profit, Corporate Social Responsibility (CSR) is an important concept in today’s business climate. These CSR elements are also known by the catchy phrases “people, planet, profit” or “triple bottom line.” Auditing these components and creating an integrated plan to improve and capitalize on them, brings tremendous marketplace gains for a business. Not only are these three pieces of the CSR puzzle inseparable, but with positive feedback mechanisms, they also create a sum benefit much greater than any one of the parts.


If customers and employees are treated as important partners in a mutually beneficial business relationship, business profitability becomes much more sustainable over the long-term. Healthy, satisfied customers are loyal customers that will continue to return to the business. A safe, healthy and environmentally friendly workplace for employees causes them to take fewer sick days and stay with the company longer, allowing fewer work delays and decreasing turnover and training costs. By organizing and participating in social charity work, a business enhances name recognition, positive reputation and essential public relations value.


Corporate environmental sensitivity ensures the health and safety of customers, employees and a sustainable supply of natural resources. For example, reducing toxins and petrochemicals may not only lower manufacturing costs but also reduce risk management and employee insurance costs. Increasing efficiency in terms of water, energy and material use directly impacts the environmental footprint of a business, which alone has great marketing value, but also allows for a reliable supply of resources or expanded operations based on the same resource flow. Ecological restoration projects can have significant marketable offset value and can sometimes even provide ecosystem services to business operations.


Ensuring social equity and environmental integrity impact present bottom line profits and maintain longevity of profits. Efficiency measures, resource use reduction, employee health and safety and CSR marketing initiatives can reduce costs and improve brand value. Long-term business stability is sustained by preserving customer and supply chain viability through natural resource protection, customer loyalty and positive brand management opportunities. In turn, a more profitable business is able to spend more capital on social and environmental programs, which cycles back into profitability.

The inseparable nature of CSR components creates positive and integrated feedback mechanisms that sustain global business, environment and society. A systemized approach to people, planet and profit is one of the most important tools that a business can use to succeed today.


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