Responsible Leadership and Corporate Social Responsibility: Metrics for Sustainable Performance

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Responsible Leadership and Corporate Social Responsibility: Metrics for Sustainable Performance Page 628-647 1. Executive Summary for this reading. One of the biggest challenges businesses face today is how to establish corporate social responsibility. An increasing number of companies have realized that being socially responsible and implementing sustainable practices can give them a huge advantage over their competitors. In order to determine if a company is being profitable as a result of implementing sustainable initiatives, the extent to which a company’s performance increases must be measured. The article discusses different metrics which are used by companies in order to measure sustainability. Companies are being asked to provide information on how they identify and measure their sustainability performance. These measures are usually implemented in ratios, which usually mean that the lesser the metric than the better the results. Furthermore, social responsibility metrics are also covering social issues such as human rights, labor and employment issues, supplier relationships, community initiatives, and corporate philanthropy. There are many different approaches that have been used to measure and monitor different companies’ progress toward sustainability and although the metrics aren’t a clear universal tool, they could still be used by different industries and companies. 2. Which are the three most CRITICAL ISSUES of this reading? Please explain why? and analyze, and discuss in great detail … The three most critical issues with this reading are that companies need to know where they stand against competitors, determine performance improvement, and forecast CSR earnings. Companies need to know where they stand against competitors in order to determine progress. Numerous companies have come to the conclusion that socially responsible behavior and

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