Shareholders expect companies to generate profits but, increasingly they also want companies to make a positive contribution to society whilst minimising negative effects on the environment. This approach to business – balancing economic, social and environmental interests is commonly referred to as corporate responsibility (CR) or sustainability.
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Companies are increasingly being held responsible not only for their own activities, but for those of their suppliers, business partners, and the community and people who use their products. They are held accountable not only by investors and shareholders but by the government, media, employees, community groups, non-government organisations, environmentalists and customers.
What market developments have driven CR onto the CEO agenda?
- International and, increasingly, local investors' rising interest in the performance of non-financial areas of the business.
- Customers’ growing interest in, and recognition of, a company's reputation in social and environmental areas. Outstanding efforts in Corporate Social Responsibility (CSR) are recognised at the Stock Exchange of Thailand’s (SET) Corporate Social Responsibility Institute (CSRI) annual CSR awards.
- The intensifying battle to attract and retain talent: good recruits want to work for and stay with companies that care about what impact they have on society and the environment.
In order to stay relevant, a business must respond to these developments as well as an array of issues in the CR arena. A sustainable business should be able to measure, document and report a positive ROI on economic, environmental and social bottom lines. The same goes for benefits to their stakeholders. To meetthe challenges of sustainability and CR, companies have to put these issues at the heart of their business.
Do these questions ring true with you?
How we can help
- How does sustainability affect my company's reputation?
- Can sustainability become a strategic advantage and open up new markets?
- How much of “doing the right thing” is enough, and where should I be doing it?
- How much do my current CR initiatives cost me? Do my contributions have a positive impact?Am I maximising the impact of my CR budget?
- How can sustainability reduce costs while qualifying for tax incentives?
- How can I build sustainability into my talent management strategy?
- Has sustainability been integrated into my key functions, e.g., supply chain, human resources, operations, corporate communications and marketing?
- Who in my value chain can I partner with to address sustainability issues, and how?
- What do I report? Does my non-financial reporting conform to local and international standards?
- Should I seek independent assurance to add credibility to my CR reporting?
As part of an international team of sustainability practitioners, PwC Thailand’s Sustainability Solutions Group can help you understand which issues have the greatest impact on your business; form a coherent strategy to address them, and support you through the often complex organisational changes needed to put your strategy in place. We can work with you on:
- Stakeholder engagement;
- CR strategy and framework;
- CR function set-up
- Carbon and climate change advice;
- Sustainability assurance and reporting advice;
- Sustainability due diligence;
- CR tax optimisation and structuring advice.
A corporate responsibility (CR) agenda begins with a commitment to incorporate social, environmental, economic and ethical factors into the company’s strategic decision-making. How do these factors affect the business and stakeholders? How does one address the risks and opportunities?