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Key MBA Models by Dr. Julian Birkinshaw, Ken Mark

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24

Corporate social responsibility: the triple bottom line

Corporate social responsibility (CSR) is a form of self-regulation that many firms have taken on, as a way of monitoring and ensuring their active compliance with the spirit of the law, ethical standards and international norms. One well-known approach to making CSR practical is to think about your ‘triple bottom line’ – making money for your shareholders, while also measuring the contribution you make to the communities you operate in, and to the sustainability of the planet’s scarce resources.

When to use it

  • To address the broad responsibilities your firm has to all its stakeholders.
  • To think through the costs you incur in using natural resources, and to account for these costs ...

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