Monday
Sep132010
Tip: Study Corporate social responsibility
Monday, September 13, 2010 at 11:31AM
Since last year the Indian Government is preparing a bill making it mandatory for large companies to earmark at least two percent of earnings for CSR (corporate social responsibility), according to an article I read in the Economic Times. At the same time China is hosting the 2010 Summer Davos addressing Sustainable Growth, investing almost 150 million USD building the meeting venture.
Clearly Western leaders have to prepare in order to maintain competitiveness and learn how to handle CSR questions, especially Sustainability.
It seems obvious that the traditional financial reporting system we use is not sufficient, the largest assets (brand and knowledge) do not appear on the balance sheet, and human resources appear as a cost... A sustainability report, showing where the company is coming from and how it intends to find resources in the future, would be a step in the right direction.
I beleive that the CSR efforts will be as crucial to business development the coming years as the Quality was in the 90's.
Clearly Western leaders have to prepare in order to maintain competitiveness and learn how to handle CSR questions, especially Sustainability.
It seems obvious that the traditional financial reporting system we use is not sufficient, the largest assets (brand and knowledge) do not appear on the balance sheet, and human resources appear as a cost... A sustainability report, showing where the company is coming from and how it intends to find resources in the future, would be a step in the right direction.
I beleive that the CSR efforts will be as crucial to business development the coming years as the Quality was in the 90's.
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