The social domain of the business incorporates the well-being of the communities, institutions and other related intermediaries and stakeholders. The activities of this participants work separately as well as are overlapped. These all create a kind of circularity helping and looping each other. Indeed, both the government and business major motto adds value to the society.
The companies are focusing on the strategic social purpose for shared values and creating social identities, the CSR helps to make the impact sustainable as well as enhance their brand identity and reputation. The core of business should be doing good and fair in its mission, i.e., providing qualitative and healthy product and services to the society and it should being from ethically handling its employee. An unsatisfied internal employee domain of organization could be the whistleblower of the organization which may dampen company image in the social domain.
Contemporarily businesses are going beyond employee-employer relation and providing social entrepreneurship, developing intrapreneurship, employee stock ownership as its positive impacts ultimately reside in the social domain. The CEO of “Chobani”, announced to give 10% ownership in the company stake to all its 2000 employees (Groll, 2016) is an example of how a company can build CSR into its corporate strategy.
The government play vital role to establish and maintains legal forms, policies and programs in the society. Government is self-enforced and voluntary with CSR and its sustainability (Thiel, 2016) . It creates a conducive environment which facilitates the smooth running of business, define rules of law to maintain security and assurance. Perhaps in various circumstance government/ regulator makes CSR initiatives mandatory. Back in my country, it was mandatory for banks and financial institutions to invest at least 3% of its total profit in the training and development programs of employees. Government looks after human rights, health, education et cetera but political philosophy, political interaction, and activities play important in shaping CSR methodology. Though each of the entity has their own dimension in society to work, often they get overlap. For example, if natural calamities happen then business and government come side by side to serve the affected locations.
Though the measurement of the CSR impact in the social domain is difficult to measure, still it’s essential. Its philosophies lie in protecting and harmonizing 3P’s (People, Planet, and Profit). Its impact can be measured by analyzing the outcome it had on the economic, social and environmental well-being of the society. Data could be achieved from regulators, researchers, funders and other related stakeholders and also from the company’s own R & D department, it helps to get various financial and non-financial indicator. Oil giant Shell produced sustainability report to see its social impact and the London Benchmarking Group (LBG) scheme calculates the input, outputs, and impact of charitable activities (Balch, 2011) . Key Performance Indicators(KPI) could be the basis for analyzing the impact of CSR but often the subjects might not be straightforward and technical. For example, it could be hard to measure the impact of organizations new liberal dress code policy on the productivity of employees.
Bibliography
Balch, O. (2011, September 2). Measuring social performance is difficult but essential. Retrieved from www.theguardian.com: https://www.theguardian.com/sustainable-business/blog/measuring-companies-social-impact-performance
Groll, M. (2016, April 26). Chobani is Giving Employees Shares in the Greek Yogurt Company. Retrieved from www.nbcnews.com: https://www.nbcnews.com/better/careers/chobani-giving-employees-shares-greek-yogurt-company-n562691
Thiel, M. (2016). The Social Domain in CSR and Sustainability: A Critical Study of Social Responsibility among Governments, Local Communities and Corporations. New York: Routledge.
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