Uncovering hidden truths: identifying the basics of corporate environmental responsibility

As organisations have evolved, many things that were once viewed as acceptable have become unacceptable. One such element is that of corporate social responsibility (CSR). Previously, organisations could get away with irresponsible actions and behaviour under the guise that their actions cannot directly be linked to any negative implications. This was especially relevant within the environmental responsibility element. However, continued deterioration in sustainability terms has caused an uproar within consumers and other stakeholders. This has prompted firms to become more cognisant of their initiatives and practices as well as their impact on the different sustainability metrics. Many businesses are now judged based on how sustainable they are, and the resulting outcome can impact their performance. Even organisations that have longstanding reputations are susceptible to these consequences. Brand loyalty is no longer tied to just the products and services on offer. If consumers are not happy with the sustainability efforts of the business, they are likely to sever connections regardless of their previous relationship. This makes stakeholder management a more complex element in terms of sustainability. That is why many firms have invested significant resources to develop sustainability plans and incorporate them into their strategic plans. Ramya and Baral (2024) sought to investigate the underlying elements within the environmental responsibility concept in order to better understand the core dimensions that are at play.Even though CSR is a newly important concept, it has several implications for businesses that can make the difference between success and failure. While CSR entails several areas including financial and people-related, the one with the most focus for organisations is the environment. This is because it has been the most neglected by organisations. Business can be held partly responsible for the environmental state of the economy; therefore, it only makes sense that they should contribute to reversing these effects as well. The concept of corporate environmental responsibility (CER) has gathered a lot of intrigue. The benefits that firms can achieve when engaging in CER are evident, just as are the consequences of not taking it seriously. Viewing CER as a secondary goal is what has led many organisations to their downfall. Consumers are more environmentally conscious than ever before, so firms need to follow suit with this demand. It is likely that this interest in environmental causes will change, so it is in their best interest that businesses continue to invest in innovation towards these areas. While there has been steady progress in these areas, there remains a lot of work to be done. This requires novel ideas as well as mindsets to shed the previous judgements and to adopt new ways of looking at these environmental and sustainability issues.An interesting perspective to take in dealing with CSR is viewing the natural environment as a stakeholder. Like any other stakeholder, this would entail considering the needs of the environment and catering to them to make sure that they are satisfied. Stakeholder management is a critical skill all organisations need to master. The power that stakeholders have cannot be denied; therefore, viewing the environment as a crucial element in this regard can help organisations form strategies that are relevant for tackling various environmental issues. It is also beneficial to understand the conflicting expectations between various stakeholders, including the environment. For example, while consumers may want a cost-effective product or service, doing so may mean using methods or resources within the environment that are detrimental. These types of tensions are largely ignored when the environment is viewed as a tool and not an essential network within the business relationship. Rather than just being a material element to be used, it should be seen as a contributing factor to organisational value. Just as human capital used to be seen as a resource that organisations can exploit to one that is critical to the success of the firm, this is the same shift that needs to happen for CER to be effective in the long term.The journey towards environmental consideration is not an easy one, and even large corporations struggle to maintain good standing in this regard. The goal is not to be perfect but to continue to make progress. This is not something that can be solved in a short timeframe, and even the scale of resources that the organisation has may not be a factor in terms of an organisation being competent in this area. It has been many years that organisations have worked with the exploitative mindset, where natural resources were to be used with little regard for consequences. Therefore, a shift is bound to take some time. This is where firms can explore different solutions to identify what works best for their business and activities. Just like any strategy, there is no “one size fits all” approach. So organisations may have to engage in trial and error before they reach a place where they can be confident in their CER initiatives and their impacts. Tremendous improvement has already taken place since environmental sustainability has gained popularity. Therefore, it is only a matter of time before organisations can propel forward with these practices.This review is based on “Exploring corporate environmental responsibility through practitioners’ lens” by S.M. Ramya and Rupashree Baral, published in the Social Responsibility Journal.