Profit maximization is undoubtedly the main reason that explains the existence of most businesses. While companies strive to make money to survive, it is becoming clear that they need more than capital and customer-oriented strategies to make a profit to sustain the business. Businesses must look at diversity and corporate social responsibility to be successful in the current complex business environment. Corporate Social Responsibility (CSR) is aligning a company’s activities with the social, economic, and environmental expectations of its stakeholders (Cho, Kim &Mor Barak, 2017). Diversity is about creating an environment that is welcoming to all types of people despite their traits that makes them different from the majority in the company (Boudreaux, 2018). In this sense, a business that needs to exist in the market as a leader for long needs to have in place measures to integrate diversity and CSR to generate more revenue for its existence. Since it is becoming mandatory for businesses to create a positive CSR, diversity is affecting all companies despite the nature of their operation.
Will diversity impact the socially responsible business?
The Renewable Green Energy business is socially responsible; however, it will still need to consider diversity to enhance accountability, ethical operations and also attract more talents that will make it successful. Targeting customers with environmentally friendly products and encouraging them to use environmentally friendly energy is entirely being responsible as a business. However, such a firm will still need to have the right employees to talk to diverse people in society and lobby them to understand the products from the company (Hansen & Seierstad, 2017). It implies that the socially responsible business must have internal policies that are friendly to any employee that possesses the talents they need to push for their agendas and win customers. In this sense, the business must align with diversity to be able to attract top talents in the market to promote its objective.
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Additionally, the socially responsible business must be able to recruit leaders and managers with a diversity mindset to create a culture of diversity that will enhance transparency, accountability, and positive image to the public. Leaders and managers that have a diversity mindset push for bias-free policies. Furthermore, such leaders create a business environment where every culture matters (Krause, 2017). They strive to promote equity, transparency, and accountability in all business operations. A culture of transparency, accountability, and ethical leadership that comes due to diversity is critical for the success of all businesses despite their CSR score.
Will diversity impact the other entities?
Diversity is likely to affect Non-Profit and Public Sector Entities because they will be in collaboration with the Renewable Green Energy business, and they will need to be transparent, accountable, and remain ethical to succeed. It is critical to understand that companies are not charities; they are about making a return for their bottom line. These opportunities and aspirations lead to better communities and more significant growth for the company. When a business is mindless of issues such as gender, religion, and races, it appeals to the community with a diverse population demographics. In this sense, such a business is likely to attract more customers and gain a competitive advantage (Hansen &Seierstad, 2017). For both Non-Profit and Public Sector Entities, the aim is to interact with potential clients from a diverse workforce.
Furthermore, the aim is to remain financially stable to manage the operations. It implies that they need transparency, ethics, creativity, and accountability to succeed. All these factors are possible with leaders who have a diverse mindset to create policies and cultures that favor all manner of diversity in the organization.
Despite the nature of a business, diversity is a factor that entrepreneurs need to understand and practice to succeed in the current competitive and complex business environment. Therefore, both the CRS business, Non-Profit and Public Sector Entities will feel the effects of diversity. They will need to create a culture that is sensitive to diversity to succeed in the business.
References
Boudreaux, C. J. (2018). Ethnic diversity and small business venturing. Small Business Economics , 1-17.
Cho, S., Kim, A., &Mor Barak, M. E. (2017). Does diversity matter? Exploring workforce diversity, diversity management, and organizational performance in social enterprises. Asian Social Work and Policy Review , 11 (3), 193-204.
Hansen, K., &Seierstad, C. (2017). Corporate Social Responsibility and Diversity Management. Switzerland: Springer International Publishing .
Krause, F. (2017). Corporate social responsibility and diversity management: a win-win situation? Comments from the case of Germany. In Corporate Social Responsibility and Diversity Management (pp. 75-91). Springer, Cham.
