Until recently, most large businesses were driven almost exclusively with a single goal in mind: maximising profits. In the last few decades, things have changed.
Business success is defined beyond profitability, growth rate and brand recognition. In today’s world, customers, employees and other stakeholders judge a business by how it impacts the community, economy, environment, and society.
On the 20th anniversary of the Alfred Mizzi Foundation, Julian Sammut, the foundation chairperson, gave an overview of how Alf. Mizzi and Sons Ltd put their corporate social responsibility into practice. The foundation supports social, environmental and philanthropic initiatives to improve Maltese society.
The foundation is best known for its involvement in soup kitchens, especially in a joint venture with Caritas Malta and the government, but it is also involved in other environmental, philanthropic and cultural initiatives that aim to improve the well-being of our society.
This is a shining example of how social solidarity can be practised. Other businesses must follow this example by doing what is best, not just for their companies, employees and shareholders, but people and society at large.
Corporate social responsibility is a form of self-regulation expressed in initiatives or strategies, depending on an organisation’s goals.
Businesses must define their corporate social responsibility strategies guided by the triple-bottom-line concept: profit, people and planet. Economic responsibility is, of course, crucial. The end goal of economic responsibility is not just to maximise profits but also to ensure that business operations positively impact the environment, people and society.
This is particularly relevant in the current local economic context, characterised by the employment of an increasing number of low-paid third-country workers who sometimes work in precarious conditions. How a company treats its employees plays a significant role in its overall success. If employees feel unappreciated and believe they are simply a means to an end for the employers to make money, it will significantly affect the standard of their work.
The threat to the local environment due to overdevelopment also needs to be addressed by businesses with a sensitive social conscience.
The Mizzi Foundation does well in getting involved with environmental NGOs that often act as the voice of conscience in our society. More businesses must become socially responsible for the common good of our society. This may sound simple but there are a few caveats. Sammut poignantly remarks: “There have been times we have been let down, or we felt our money was not spent as well as it could have been.” This is why it is crucial to identify the right partners to invest in the well-being of our community.
The public, employees and consumers react positively to companies that embrace long-term social responsibility.
At a time when social solidarity is becoming less of a priority for many individuals, business leaders need to show the way to a return to traditional values that promote the common good of the whole community. It is positive to see companies conscious of their impact on all aspects of society, including economic, social and environmental.
It has been encouraging to see CSR also being put to good use to help the arts, an important but grossly underfunded sector. This can be a mutually beneficial partnership, where businesses enhance their public image and contribute to cultural enrichment while supporting artists and creative communities.
Corporate social responsibility must never be merely a business trend. It is something that is going to be necessary for a long time to come.