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How an organization can act socially responsible

by Matthew J. Geiger

Created on: February 13, 2010

All businesses have to deal with public relations issues to preserve their company’s image.  Certainly, this is no small chore when it comes to some disastrous comment made by a manager or product recall, yet there are good times for the pubic relations department as well.  It is when businesses reach out to improve the communities in which they operate that corporate America shines the most. For far too many reasons to exemplify, community outreach is beneficial to everyone involved in the operations of a business.



No business is an island.  Employees and consumers are members of our society while the mistreatment of one community directly affects us all.  This no more true than in the modern age as globalization has linked all the economies of the world together as one.  Because a business that supports a community is far more likely to be supported by that community, outreach can translate into greater support in terms of loyalty and commitment on behalf of employees as well as consumers.  In the face of corporate missteps, damaging accusations, or unhealthy competition, this can also help a business prevail.

Meanwhile, community outreach affects the attitudes and philosophies of employees.  Outreach offers employees better self-images and destressors, thus businesses will be able to capitalize on improved morale. Additionally, lower level employees will feel more supported by a business, which supports their community, and this may translate into a need for a smaller payroll or fewer fringe benefits.  At the same time, upper management may also feel more connected to a community.  As a consequence, these decision makers are far more likely to take into account ethical considerations that would undermine consumers and the company in the future.  

This greater sensitivity to ethical considerations, especially when applied across entire industries, discourages unhealthy competition and encourages healthier business practices that promote long-term success.  Strong employment and healthy communities are required for a strong base of consumers to exist in order to support global growth.  As an industry feeds our society, it generates a sustainable revenue stream only if the communities, in which its member companies exist, benefit.  As such, community outreach helps support the interests of businesses by ensuring communities around the globe prosper from the gains made by industry.

It is the function of businesses to serve our society by dispersing profits to maintain our economies.  When companies focus on their revenue, i.e. profit, versus revenue stream, i.e. sustainability, their short-sighted behavior will eventually undermine their success.  Community outreach is a means of guaranteeing a business will always have a strong consumer base to tap while customers can and will want to come back to that company. With globalization, a collapse of one economy translates into weak consumption in all communities, thus businesses must support the growth of all Peoples around the world.

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