Corporate Social Responsibility (CSR) means that enterprise is sustainable. Sustainability may sometimes seem to be a hype, an all-embracing container concept. This is probably because it is used in many divergent areas. To provide better insight into the container concept, the main themes involved are shown below for the categories People, Planet and Profit.

 

First-order and Second-order Profit

Sustainability directly influences the financial performance of companies. First-order profit is concerned with the link between saving money (cost reduction) and the sustainable use of resources and the environment. Second-order profit is concerned with earning money (increasing revenue) and the sustainable use of scarce resources and the environment.

First-order Profit	Second-order Profit
Saving on internal energy consumption leads to lower energy costs	Developing a new, more sustainable product for customers or end customers
Saving on the internal need for materials leads to lower cost of materials	Developing a new, more sustainable service for customers or end customers
In some instances, recycling of materials is cheaper than producing new materials	Assuming a new role in closing the chain (extraction, separation or recovery) as a means of earning money.

These themes run throughout the entire chain. To achieve sustainable improvements, companies will have to look (even more) beyond the borders of their own organisation and collaborate with other chain players. In fact, chains are becoming circles.

Opportunities and challenges for government organisations

As a municipality, province, district water board, healthcare institution, housing corporation or educational institution, you are at the centre of society. Besides fulfilling a social function, you are expected to work in a financially responsible manner, showing respect for people and the environment. In other words, Socially Responsible Enterprise. Berenschot can help you contribute to current social issues and strive for sustainable growth. We do so on the basis of the ISO 26000 standard for Corporate Social Responsibility (CSR).