ecently, the Babson Social Innovation Lab issued a report entitled Project ROI – Defining the Competitive and Financial Advantages of Corporate Responsibility and Sustainability. The report provides additional supportive documentation that corporate responsibility and sustainability best practices can generate significant financial returns and bottom line benefits. In their report, corporate responsibility has a broad and inclusive definition. It embraces several terms and concepts including “sustainability;” “environmental, social, and governance;” “corporate responsibility;” and “corporate social responsibility.” In essence, corporate responsibility refers to an organization’s or enterprise’s capabilities to:
What then are some key “corporate responsibility” and sustainability best practices that companies and enterprises can pursue and achieve improved performance? Are there potential target values that can be attributed to the use of these best practices?
The Babson Lab reviewed several major corporations and their corporate responsibility best practices, including Pirelli Tire, CVS Health, Lockheed Martin, Unilever, and IBM. These corporations are industry leaders and represent a variety of business and market sectors.
The potential targets for improved financial performance for large publicly traded companies include:
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Even though these opportunities were developed for large publicly traded companies, the same sustainability value opportunities hold true for small to medium size enterprises as well. Those companies in the furniture, automotive, food, and construction industries may have already begun to see these strategies being employed within their sustainable supply chain management programs.
All the best on your sustainability journey!