What is a responsible business?

Key elements of corporate social responsibility

Being a responsible business is about setting your business up today to be more resilient tomorrow in light of future challenges and expectations. It’s about being a good corporate citizen, subscribing to the 3 P’s (people, planet, profit) or the Triple Bottom Line. It’s about having a positive impact.

At RBC, we see a responsible business as one that embeds sustainable practices systematically across their organisation in five key areas – People, Governance, Environment, Marketplace and Community. This framework allows us to help clients address sustainability issues to deliver economic value as well as improved environmental and social outcomes. This framework is similar to the B Corporation impact areas and the former Business in the Community Corporate Responsibility Index.

People

This is about your people and the culture of your organisation. How you treat your employees and contractors will affect how you attract future talent, how satisfied they are and whether they remain loyal and engaged. The culture you create is based on your values and leadership, and your approach to diversity, work-life balance, and health and safety. Your investment in your people and culture can set you apart from your peers or competitors. This, in turn, affects your ability to deliver your products and services now and ultimately your growth.

Governance

Does your top-level leadership set the bar for responsible business practices, and do your policies and systems ensure ethical practices throughout your organisation? With the current spotlight on large corporations and the financial industry in particular, now is the time to make sure you’ve got the right structures, culture and practices in place.

Environment

Do you understand the impact of your operations, products and services on the local and global environment? These could be specific to a local waterway or air quality, regional challenges like the use and disposal of plastics or hazardous waste, and of course global challenges like the use of fossil fuel and their contribution to climate change. Responsible businesses focus on positive impacts through the use of organic products, recyclable or less packaging, creating energy and waste efficient processes or opting for/investing in renewable energy.

Marketplace

Your customers are the lifeblood of your business. Are you prepared to deliver for them in line with their expectations now and in the future? Are your products and services contributing a better world? Responsible businesses may choose local suppliers, or suppliers employing those from disadvantaged or Indigenous backgrounds. A responsible business will look to do business with suppliers with Fairtrade or other recognised certification such as Supply Nation, ISO 14001 or FSC. With the spotlight on modern slavery, you don’t want to get caught without a 360-degree view of your supply chain.

Community

Local to your operations are other businesses, residents, local authorities and non-government organisations, and a mix of cultural groups including your employees. It’s a diverse group of stakeholders with increasingly high expectations about how you operate and positively contribute to their community. Responsible businesses also consider the needs and expectations of a broader community, for example, the city or country they operate in or even the global community – especially when it comes to global issues like adapting to climate change. Responsible businesses balance their future growth with the communities that support them.

Need help navigating your journey to more responsible business practices?