organizations and government. Others claim that societal problems, such as
pollution and poverty-level wages, have been brought on by corporations’ actions,
and it is the responsibility of business to right these wrongs. Reasons for being
socially responsible include the following:
• Being socially responsible can raise customer trust and identification with the
firm, which in turn, builds customer loyalty, often leading to higher profits.
b. Growth of Social Responsibility: Companies are coming under increasing
pressure from governments, advocacy groups, investors, prospective employees,
current employees, and consumers to make their organizations more socially
responsible. One way firms can do this is by joining the United Nations Global
Compact (UNGC), which is the world’s largest global corporate citizenship initiative.
d. A big part of the B Impact Assessment is measuring a firm’s sustainability.
Sustainability is the idea that socially responsible companies will outperform their
peers by focusing on the world’s social problems and viewing them as
opportunities to build profits and help the world at the same time.
• Environmental sustainability is concerned with minimizing or eliminating
threats to the physical environment.
e. Green Marketing: Green marketing is the development and marketing of products
designed to minimize negative effects on the physical environment or to improve
the environment. One approach that firms use to indicate that they are part of the
green movement is to use third-party eco-logos.
Examples: Eco-logos include the chasing-arrows recycling logo (the product is