The ways in which companies operate has changed significantly in recent years. With more emphasis put on environmental impact as well as the effects on communities, organisations have a lot more responsibility in terms what they are accountable for. Scandals such as the Volkswagen emissions one have rocked communities and the business-world alike to the core.
Corporate social responsibility (CSR) is an account of business performance with regards to its impact on the economy, the environment and the economy.
Corporate social investment (CSI) is a part of CSR and is used by companies in order to create projects or programmes that are aligned with the company’s values in order to contribute towards community upliftment.
For any company that wants to operate successfully, monitoring the bottom line is a key component of the process.
The triple bottom line is a three part accounting framework, based on environmental, financial and social impacts. It’s a driver of ethical investing. Rather than organisations only focusing on their financial bottom line, the triple bottom line means that they are also required to focus on various other factors, such as the community at large. and how the organisations operations affect the environment.
With any CSI project, the impact on stakeholders is important, so this measure is used as a guide on how to ensure that priorities are in check in terms of how the organisation conducts business.
The needs of shareholders are prioritised just as much as those of stakeholders, such as society.
A progressive company will further CSI programmes whether required to by law or not.
Studies indicate that companies that pay attention to CSI and CSR are more profitable than those that don’t. This is why paying attention to the triple bottom line when CSI strategies are put in place is key. CSI programmes can’t exist in silos. They should rather be complemented by the triple bottom line as a driver.
CSI offers an easy way of achieving the ideals and objectives of this measure..