2. Social business responsibility for internal Stakeholder
Internal Stakeholders such as employees and other member who are responsible for the company's growth.
It is a well known fact that every organization or business has a responsibility towards its clients or consumers. However, they also have a social responsibility towards their employees and all other internal members who are constituents as an internal stakeholder for the company.
The internal stakeholders are considered as important assets or human capital for the company. Also, their improvement has a direct impact on the company’s growth.
Human Capital :
Human Capital: The term human capital refers to all the employees and the skills, experience, and knowledge they bring along with them for the betterment of the company.
- He/she is an intangible asset or quality which cannot be quantified or listed on a balance sheet.
- Human capital increases the productivity and profitability of the company.
- The more investment a company makes in its employees, the chances of its productivity and success become higher.
Therefore, it is companies responsibility to build a conducive and sustainable environment for its employees. It all should start with fair practices and a decent work environment. This includes fair practices, labor rights, decent work, and the concept of minimum wage.
Business Model Innovation and Social Responsibility
Business model innovation has the potential to integrate value propositions in ways that enable businesses to gain a competitive advantage. The creativity, openness, and conflict-resolution skills are the pillars on which successful business model innovation relies. These pillars help the businesses focus on responsibility towards the employees, which is one of the three dimensions of social responsibility, along with the responsibility to the environment and society. Furthermore, embedding these social responsibilities into new business models can create a sustainable competitive advantage by attracting high-quality employees. Also, business model innovations help in enhancing the productivity of the employees and thus boosts the growth of the companies. It also helps the businesses have the competitive advantage over other similar businesses in the market. One such major responsibility starts by making the supply chain management sustainable.