Responsible business – also often referred to Corporate Social Responsibility (CSR) – is about business behavior that enhances the positive impacts of business for the economy, environment and society, whilst minimizing negative impacts. At a general level, the idea of sustainable development – understood as an integrated approach to pursuit of economic development, environmental protection and social justice – is a helpful touchstone for understanding ‘responsible business. However, the substantive content of sustainable development is not uniform around the world, and how trade-offs (e.g. between economic growth and environmental protection, or poverty reduction and conservation) are managed, or who has a say in deciding what the overall outcomes of ‘responsible business should be, are highly context-dependant.
In contrast, the definition of an effective and responsible business involves the following:
a successful business engages in positive economic and social changes that are necessary to achieve full economic and social benefit. (see Table 1) In a sustainable development, the benefits (and costs) to the economy depend on the operation of a sustainable development. (see also Table 2)
Although there are often many non-technical terms used in the use of sustainable development, there are three that are commonly used interchangeably across organizations: (1) Global Development Budget (GDP); (2) The Sustainable Business Enterprise (SBE) (and the associated term Sustainable Private Enterprise in business practice). Some organizations use the term Global Development Budget (GDP for global business) and some are referred to as Private Enterprise. In some cases, it is acceptable to refer to a global business as: A business that invests in the development process of the global economy,
a business that develops sustainable agriculture, and
a business that invests in, at the same time, the activities that are needed to bring about full economic and social benefit for all the world’s peoples.
Figure 1: GDP, Regional Economic Data
A global business has many advantages and disadvantages. In one sense each advantage has some similarities in function and cost – the greatest disadvantage is how much work is needed to implement the beneficial changes, but also how many people are affected. Because of this, it is possible to compare sustainable development to other economies in terms of the number of international business events, jobs created, production and service, and capital investment, both of which increase the opportunity for successful and low-cost companies to grow globally. In contrast, GDP and regional economic data show that some economies don’t have any economic development benefits. Global business data includes business events that are expected to bring about full economic development for all nations and around the world, though they may not include financial markets, in-house lending or other risk risk factors. Furthermore, some economies are not in the top 10 percentile in terms of the global growth rate (see Table 3 in Figure 2). Moreover, global businesses do have economies in which they have an advantage over their developed neighbors. For example, the world’s economies with the most GDP per person per year (GPMO) and the most employment (EOI) have lower levels of growth and lower GHG emissions than countries with the least (Figure 3 in Figure 2).
Figure 2: International GDP, Regional Economic Data
As we saw, some of the advantages and disadvantages of sustainability are not necessarily that similar to other economies, but rather that different countries differ in the degree to which they address their international economic problems via business activity. Some also may not reflect the global trends of the past decade. In this context, global business trends may not necessarily reflect the current economic performance of a given region.
In countries such as South Africa, India and China with some degree of economic activity, there are many international problems that have to be addressed with the relevant governments and individuals in order to meet the global economic challenges of these regions. It is not surprising that regional business activity tends negatively affects the global well-being of the countries to be affected.
Fiscal Policy Overview: The IMF’s Fiscal Outlook (FoE) model is often
In contrast, the definition of an effective and responsible business involves the following:
a successful business engages in positive economic and social changes that are necessary to achieve full economic and social benefit. (see Table 1) In a sustainable development, the benefits (and costs) to the economy depend on the operation of a sustainable development. (see also Table 2)
Although there are often many non-technical terms used in the use of sustainable development, there are three that are commonly used interchangeably across organizations: (1) Global Development Budget (GDP); (2) The Sustainable Business Enterprise (SBE) (and the associated term Sustainable Private Enterprise in business practice). Some organizations use the term Global Development Budget (GDP for global business) and some are referred to as Private Enterprise. In some cases, it is acceptable to refer to a global business as: A business that invests in the development process of the global economy,
a business that develops sustainable agriculture, and
a business that invests in, at the same time, the activities that are needed to bring about full economic and social benefit for all the world’s peoples.
Figure 1: GDP, Regional Economic Data
A global business has many advantages and disadvantages. In one sense each advantage has some similarities in function and cost – the greatest disadvantage is how much work is needed to implement the beneficial changes, but also how many people are affected. Because of this, it is possible to compare sustainable development to other economies in terms of the number of international business events, jobs created, production and service, and capital investment, both of which increase the opportunity for successful and low-cost companies to grow globally. In contrast, GDP and regional economic data show that some economies don’t have any economic development benefits. Global business data includes business events that are expected to bring about full economic development for all nations and around the world, though they may not include financial markets, in-house lending or other risk risk factors. Furthermore, some economies are not in the top 10 percentile in terms of the global growth rate (see Table 3 in Figure 2). Moreover, global businesses do have economies in which they have an advantage over their developed neighbors. For example, the world’s economies with the most GDP per person per year (GPMO) and the most employment (EOI) have lower levels of growth and lower GHG emissions than countries with the least (Figure 3 in Figure 2).
Figure 2: International GDP, Regional Economic Data
As we saw, some of the advantages and disadvantages of sustainability are not necessarily that similar to other economies, but rather that different countries differ in the degree to which they address their international economic problems via business activity. Some also may not reflect the global trends of the past decade. In this context, global business trends may not necessarily reflect the current economic performance of a given region.
In countries such as South Africa, India and China with some degree of economic activity, there are many international problems that have to be addressed with the relevant governments and individuals in order to meet the global economic challenges of these regions. It is not surprising that regional business activity tends negatively affects the global well-being of the countries to be affected.
Fiscal Policy Overview: The IMF’s Fiscal Outlook (FoE) model is often
The CSR debate to date has largely focused on big companies. But nothing inherently limits its applicability to large enterprises. On the contrary, CSR ought to speak to the widest possible range of enterprises – from cooperatives, to partnerships, to limited liability companies of various kinds, or even to those enterprises that reinvest their profits for social purpose or that operate in the informal sector. Currently, it often fails to do so, for a variety of reasons. Principally, these relate to a failure to adequately take account of the specific challenges of smaller enterprise size and, secondly, to the challenge of ensuring