Nowadays, businesses want to be regarded as responsible corporate citizens. Socially responsible organizations would like to structure their production methods to fit in with increasingly strict environmental regulations. Such firms take seriously their environmental responsibilities in raw material usage, packaging, waste treatment and energy consumption. These businesses will honour commitments, not engage in misleading or deceptive product descriptions and provide a safe working environment for their employees.
Not all the businesses have such an outlook. Some business owners still regard socially responsible business practices as a waste of money, the cost outweighing any benefits. The majority of business owners, however, regard the cost of socially responsible actions as necessary expense. They make such a commitment an essential part of their business operation. They take a great deal of pride in the reputation their business has established and wish to protect its good name. These businesses want to be seen as responsible corporate citizens, conscious of the high standards expected of them by their customers and society at large.
2. What the organizations do in terms of social responsibility:
The business world of today is much more complex compared to that of 60 years age, requiring a higher degree of corporate social responsibility. Increasingly, shareholders are starting to question and call to account the decisions made by directors concerning the business's environmental performance.
2.1. Organizations which do well and bad in Australia:
In Australia, the Corporations Law now makes it compulsory for companies to provide more details about their environment activities. Environmental reporting is gradually becoming a more widely recognized business practice.
Recently, five million Australians own shares. These shareholders have instant access to vast amounts of information about companies. The result has been the development of new shareholder groups, many of which focus their attention on environmental issues.