Big business is arguably the primary place where sustainable and socially responsible practices need to be implemented if change is going to be made on a grand scale. And one of the best ways to encourage companies to sign on to socially responsible initiatives is to make a direct connection to the bottom line. This recent report from McKinsey Quarterly does exactly that, breaking down the financial value implicit in socially responsible business practices. Their case studies, like this one of IBM, illustrate exactly how financial benefits can be reaped from socially responsible programs:

“IBM has used environmental, social, and governance programs to establish its  presence in new markets. For example, the company uses its Small and Medium Enterprise (SME) Toolkit to develop a track record with local stakeholders, including government officials and  nongovernmental organizations (NGOs). In partnership with the World Bank’s International Finance Corporation, India’s ICICI Bank, Banco Real (Brazil), and Dun & Bradstreet Singapore, IBM is using the service to provide free Web-based resources on business management to small  and midsize enterprises in developing economies. Overall, there are 30 SME Toolkit sites, in 16 languages. Helping to build such businesses not only improves IBM’s reputation and relationships in new markets but also helps it to develop relationships with companies that could  become future customers.”

Filled with such real-life examples and well-organized data, this report is a great resource for businesses looking for quantifiable reasons to choose the socially responsible path.

Thumbnail image via McKinsey Quarterly.