So, what is responsible business?

Since the Organisation for Responsible Businesses launched in 2010, this has been our definition of responsible business:

As discussed below, evidence suggests that certain approaches to responsible business have become little more than a tick box exercise, especially in the corporate world. We believe that an organisation, whatever size or sector, can only be described as operating responsibly if a values-based, holistic approach is embedded and communicated authentically throughout the organisation in a way that aligns people, planet, profit and purpose.

Consider means to give attention to a particular subject or fact when judging something else; to care about or respect. Values-based businesses should embrace a regenerative approach that aims to create a net positive impact on the environment, society, and economy. This approach to responsible business is reflected in the Members’ Pledge that all members of the Organisation for Responsible Businesses make as part of their application process.

Responsible business is often equated with Corporate Social Responsibility (CSR) or Corporate Responsibility (CR). But responsible business is not about size. It embraces all types of business, including freelancers and sole traders. While CSR has been marred by the misuse of large corporations, ORB has a more inclusive approach, using the term “responsible business.” Genuine responsible business entails embedding core values into every facet of operations, rather than treating it as a mere checkbox exercise. ORB has always emphasised the importance of integrating these values into business plans from the outset, fostering a culture of responsibility internally and externally. Unlike traditional CSR approaches, which may focus solely on philanthropic activities, ORB advocates for a holistic integration of values, accessible to individuals and micro-businesses alike, without the need for costly and less appropriate accreditation methods.

ESG (Environmental, Social & Governance), if embraced authentically, is a comprehensive approach that is more aligned with responsible business principles.

ESG considerations differ for large corporations versus smaller businesses. In corporate settings, Governance focuses on how the Board of Directors direct and control a company. For smaller businesses, it correlates with a more ‘grass roots’ approach; essentially the systems that are in place to manage the organisation, meet legislative requirements, and ensure transparent decision-making and ethical leadership.

Organisations of all sizes should consider their environmental impacts, but steps that need to be taken to reduce negative impacts and increase positive impacts will always vary greatly according to the size and type of an organisation.

Positive social impact requires consideration for all stakeholders including employees, customers, suppliers (including those in the supply chain) and the local community. For small businesses, a positive community impact often ripples through their activites unquantified.

Our Responsible Business Standard (RBS) certification guides small businesses through tailored ESG efforts, ensuring alignment with their size, type, and overall positive contributions.

If you have employees, responsible business starts here.

The workforce is invariably a business’s greatest asset and should be treated as such. You will reap the rewards!

The evidence is overwhelming that a trained, engaged and motivated workforce will result in less absenteeism, less presenteeism, reduced staff turnover and more productivity.

If you don’t have any employees, the same principles apply – look after yourself!

Environmental legislation continues to increase and there are few businesses that are not required to adhere to specific rules and regulations. And yet it is still estimated that business could make £6.4bn per annum in savings on costs such as paper, waste disposal, water, heating and transport.

How much could your business save?

Although there is without doubt a business case for reducing environmental impacts, the climate crisis and devasting environmental impacts of plastic and other waste streams is surely a far bigger reason to ensure you are embracing environmental changes in your business.

Most individuals are increasingly concerned about their personal environmental impacts and it makes total sense to take those concerns into the workplace. According to the size of your business, you may even find employees who would happily take on the role of ‘Environmental Champions’ to help ensure best practice is understood and embedded throughout the company.

Considering the needs of the local community and getting involved in a way that suits your business can have numerous benefits – and can be fun too!

Community engagement can boost your reputation and is an excellent way of engaging and motivating employees.

When possible, sourcing supplies and recruiting locally will also help support the local economy.

An important aspect of community engagement is considering how, if possible, you can support young people. This could be through a mentoring scheme, offering work experience or apprenticeships.

How well do you look after your suppliers, distributors and customers?

What improvement could you make to improve your business efficiency and reputation?

How do you ensure the goods and services you provide delight your customers?

Do you build good relationships with your suppliers?

And do you know anything about the supply chain involved in the goods you purchase? For example, could they have been made by child labour?

Do you operate in an open, honest and transparent way with employees, customers, suppliers, distributors and other stakeholders?

Do you bring your personal ethics in to your business?

Greed and lack of transparency has brought the economy to its knees. A new value culture is now imperative for business success.

We encourage companies to Nail Your Colours to the Mast: “to defiantly display one’s opinions and beliefs and show your intention to hold on to those beliefs until the end.”

In other words, not just to do the right things but also openly convey that message.