Gone are the days businesses and society as a whole had nothing to speak in unison. Today the social elements are not hidden from the corporate world and business as an entity has evident direct and indirect ties with the society. Businesses today have realized the advantages of having a positive social impact and are coming forth to incorporate this into their core business strategies.
Business decisions and its outcomes have a huge impact to its internal and external stake holders. It influences the employees, customers, vendors, competitors and changes with different business outcomes. In various countries abroad, the society as a whole expects businesses and organizations to have a positive impact with their outcomes. The most crucial impact an Organization has on the society is on the economy through various factors like the salary an employee gets, the prices charged to customers, the expenses that get incurred in the supply chain, distribution etc. An example of having a positive impact on the customers is through the companies giving them a good value for the price they pay for their products or services.
Effective corporate governance practiced in an Organization can ensure a moral and ethical impact on the society. Effectively monitoring and auditing the operations of an Organization can reduce corruption within and can curb the malpractices which may directly or indirectly affect the external environment. Additionally companies work upon huge data transactions and information which is easily accessible to the masses. Jeopardy in such situations can cause a loss of trust among employees and the customers alike. Businesses can be affected if there is a lack of trust and a negative image is created in the eyes of the people due to bad business practices.
Apart from the social, moral and ethical factors, a significant area of impact a business has is on the environment. Companies are directly responsible for the environmental hazards that are caused on a daily basis in terms of the energy consumption, waste etc. Companies that undertake measures to manage the waste, implement policies which can reduce the energy consumption and develop a sense of responsibility within the employees to contribute, will have a very favorable impact and contribution to the society.
Best practices adopted as a part of the business thinking will directly guarantee a positive image for the company and corporations need to incorporate these healthy activities to maintain their status and manage crisis.
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