How CPR resonates with other topics
Creating Shared Value
Social and entrepreneurial value do not have to contradict each other; a company's entrepreneurial success and the quality of its surrounding environment are interdependent. In the long term, corporate profit goes hand in hand with healthy social and political structures. The result is a symbiosis between state and company.
Tripple Bottom Line
The Triple Bottom Line (TPL) concept expands the traditional view of value creation that focused on economic performance only by taking into account social and ecological factors as well. This understanding of profit also in terms of people and planet demonstrates a holistic approach to sustainability and corporate responsibility. However, it still lacks the political dimension which forms the core of CPR and could help to make TPL truly strategic.
Corporate Digital Responsibility
Corporate Digital Responsibility (CDR) describes the voluntary commitment to doing sustainable business in the digital sector. It embraces a responsible approach to digitalization and technologies to create transparency and trust among customers, stakeholders, and society at large. The importance of digitalization for the overall social cohesion thus has an intrinsically political dimension looking at the implication on societal participation and the potential for education and discourse.
Business diplomacy describes the transfer of the concept of government diplomacy into the business world. For multinational corporations, this means establishing strategic management of geopolitical opportunities and risks in order to stabilize the earnings base worldwide. Managers need skills comparable to diplomats, such as cultural awareness and political foresight.
Corporate Citizenship was defined by the World Economic Forum in 2006 as “the contributions of business to society through the combination of core business activities, social investment and philanthrophy, and participation in the public policy process.” Companies are seen as citizens having to obey basic civil rights and, if necessary, to advocate for their implementation.
Progress and Innovation are not merely driven by economics but by purpose. Importance lies in creating identity for employees and customers. It is seen as a blueprint for a new transformative economic era in which companies and markets are driven by the goal of investing in the prerequisites for the realisation of their values. It is crucial that customers and employees can identify with the values of companies.
Strong democratic institutions are elementary for sustainable societal and prerequisite for economic success. This is reflected in the UN Sustainable Development Goal 16: "Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels."
The categories Environment, Social, and Governance are used as a classification by investors and designed to encourage companies to act responsibly. However, the concept of governance falls short as the internal focus of corporate governance does not do justice to the current challenges faced by companies.
What’s your take on these debates with regard to CPR? Do you have further suggestions? We highly welcome your feedback!