3.2 Diversity and social responsibility

According to Ganti (2024) ‘social responsibility is the principle that individuals and corporations should operate in a way that has a positive impact on society and the world.’ When applied in a business context, this is often known as corporate social responsibility, or CSR.

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Across most of the world, this is a voluntary commitment for businesses, the exception being India, which is the first country to mandate CSR spending through its corporate law framework.

Big companies often have departments dedicated to CSR, but for organisations without those resources, what part should social responsibility play?

Watch this short video to hear what Fair Trade USA, a global leader in setting corporate social responsibility standards, recommends for small businesses.

Download this video clip.Video player: Video 6: 4 Social Responsibility Tips All Businesses Need To Know

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Transcript: Video 6: 4 Social Responsibility Tips All Businesses Need To Know

BENNETT WETCH

I’m Bennett Wetch, and I am the vice president of technology innovation at Fair Trade USA here in Oakland, California. Fair Trade USA is a non-profit social enterprise that certifies farms, factories, and fisheries around the world. And we are a global leader in setting socioeconomic and environmental sustainability standards, which enable businesses of all sizes to easily incorporate social responsibility into their supply chains.

One of the suggestions I have for increasing social responsibility to your business is to clearly define a few things you want to measure well. It’s really easy to get caught up in the trap of let’s measure everything and then figure out what matters. But I strongly recommend identify two to three things that fall squarely within your business model that you actually have levers that you can control and focus on those and measure those well. Take that defined impact and work with every member of your organisation to define how that impacts their job.

How do the things they do every day drive towards that impact, whether they’re on the accounting team, the sales team, or anywhere else in your organisation. Recognise that small decisions add up. Every cup of coffee, every t-shirt, every purchase matters. So think about the things that your company buys on a day-to-day basis and choose the socially responsible option.

The final tip that I have for becoming a more social responsible business is to think beyond your four walls. Think about all the things that enable your business to run. If you’re a coffee company, it’s a little more obvious. You rely on coffee farmers.

But if you’re a marketing agency or another company, there’s still people you rely on. There’s vendors. There’s suppliers that you rely on. And so thinking of them as your employees and treating them fairly will ensure that your company can be more responsible and more successful.

In conclusion, it doesn’t matter what kind of business you have. Any business can be responsible. And that’s what we’re here to support at Fair Trade USA is the idea that no matter what industry you’re in, no matter what point in the supply chain you’re in, you can do good.

End transcript: Video 6: 4 Social Responsibility Tips All Businesses Need To Know

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Video 6: 4 Social Responsibility Tips All Businesses Need To Know

Even in this short video, you can see the links between social responsibility and diversity and inclusion. For example, when Bennett talks about identifying 2-3 themes and then making sure that all of your staff understand their part in the impact you want to have – this could certainly apply to inclusion.

Another useful way to think about social responsibility is to consider values. These might be organisational values, team values or personal values. If an organisation has defined values, they should be reflected in its priorities, style of working, approach to challenges, etc.

In her Trellis Group blog article, Sodexo’s Global Chief Diversity Officer Rohini Anand (2019) explains that diversity and inclusion, and CSR have many shared goals – with both ‘reaching out to disenfranchised communities, bringing new insights to the table and driving collaborative solutions to business challenges.’ Many of the skills used also intersect, from change management and community relations to measurement and telling the story. She goes on to suggest that greater collaboration between those working on these two agendas can only be beneficial.

Another significant driver of social responsibility is its importance to young people in the workplace – individuals who will either be future employees or customers for your organisation. Each generation has its own characteristics and Generation Z is thought to be the most ethnically diverse generation so far. Born between 1997 and 2012, and numbering approximately 12.7 million in the UK (Clark, 2024), members of Generation Z are known for their distrust of business and support for social responsibility.

In the ‘Purpose Pulse 2024’ report (Purpose Union, 2024), polling 1,638 Gen Z and Millennials in the UK and US, findings showed:

• 66% of Gen Z respondents were more likely to value a company that had a positive social impact
• 58% felt that companies were not acting on social issues enough
• 64% expected potential employers to achieve diversity targets on race and gender.

A diverse workforce can also enhance important business activities such as problem solving and innovation. You’ll find out more in the next section.