Corporations of today are arguably faced with a new risk reality where stakeholders hold corporations morally accountable. Companies that choose to embrace this new reality reap benefits in terms of reputation and branding, trust and communication.

Responsible corporate behaviour can give you the brand name that attracts quality investors and employees. Who does not prefer to work for a prestigous company?

The wide range of risks that organisations face today is accompanied by increasing pressure to be responsible, transparent and accountable for corporate behaviour across the board.

The new risk reality
Managing this new risk reality while guaranteeing consistent business results means staying ahead in all facets of corporate responsibility – environmental, social and economic.

What’s more, the accelerating activities linked to corporate responsibility shows it is here
to stay, and it is now clear that the integration of environmental and social issues into business practices was not just a passing phase of the 1990s.

In fact it is only by responding in the best possible way to these growing concerns that major players can assure themselves an ongoing position in today’s constantly evolving corporate scenario.

The responsibility of corporations
The World Business Council for Sustainable Development (WBCSD) defines corporate responsibility as “business’ commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life.”

Exercising corporate responsibility means finding and maintaining an effective balance between the environmental, social, and economic performance of your business. It can be seen as your contribution to sustainable development.

More precisely, the concerns pinpointed by the WBCSD, the UN Global Compact, the Global Reporting Initiative and the ISO Guidance Standard (ISO 26000) include:

• Human rights, as defined by the Universal Declaration of Human Rights
• Workplace and employee aspects, including occupational health & safety
• Fair operating practices including anti-bribery, and anti-corruption
• Organisational governance
• The environment
• Consumer issues
• The local community
• Social development

Business benefits
Responsible and transparent corporate behaviour brings clear benefits in terms of reputation, perceived brand value, the gaining of stakeholder trust and positive communication potential.

This in turn attracts both quality investors and employees. While governments around the world encourage companies to take increased responsibility for the environment and society surrounding corporations, the rest of the world is also increasingly vigilant.

So when companies openly comply with the multiple demands made in the new risk environment, the resulting goodwill can really make a difference. Not only does proper management of corporate responsibility bring results from within the company, it also attracts healthy attention from the investment community.