Rewrite the below discussion on total societal impact, defination of what is CSR and Society? and the difference between CSR and TSI.
DISCUSSION:Total Societal Impact
NGOs, Government Organisations, and other well-wishers participate significantly in solving the problems faced by various societies in the current world, especially in the developing countries (Adu-Gyamfi, Awuah, &Amakye-Boateng, 2019). They do so by giving out donations, which are used to fund various programs and projects that aim at solving issues faced by such communities. These problems include hunger, poor housing, poor healthcare services, and lack of access to clean water for drinking and domestic use. Businesses also contribute to these efforts through Corporate Social Responsibility (CSR) (Sudirman, Upe& La Ode Herman, 2021).
What is CSR and Society?
CRS involves businesses donating a certain portion or percentage of their earnings to fund community development projects (Sudirman, Upe& La Ode Herman, 2021). However, it is true to argue that CSR is not enough to solve the problems faced by society and address environmental issues in the current world. A society includes certain communities, which include individuals belonging to different classes, different religions, with different levels of education. A society also includes stakeholders in various sectors of the economy; for example, in the agricultural sector and food production, the farmers are stakeholders, and they are also a part of society. Businesses and corporates are not viewed as homogeneous members of a society since they are viewed as having the main aim of making profits but not being involved in societal affairs. To adequately participate in addressing societal and environmental matters, companies should apply the Total Societal Impact (TSI) approach rather than Corporate Social Responsibility (CSR).
The Difference Between CSR and TSI
The difference between TSI and CSR is that CSR is just a norm or regulation that businesses should adhere to be socially accepted. Notably, in some countries, the law provides that companies operating within their jurisdiction should spend a particular percentage of their profit on social work (Dube, 2019). On the other hand, Total Societal Impact is where a company uses a way to innovatively create solutions to societal and environmental issues as they do business and profit. In this case, the entrepreneurs’ interests (whose goal is to make a profit) will be met while solving society members’ issues. Political goodwill and support from various governments and international organizations will help the TSI approach grow in the business world and ensure that no party is exempted from TSI policy and legislation mandates.
An Example of Application of TSI
Take an example of a company that is doing business in the textile industry. Suppose that company works together with NGOs and Community Based Organisations (CBOs) in developing countries that experience semi-arid climatic conditions through contracting farmers to grow cotton and sell their harvest to the company once they harvest. In that case, the company will have helped the society members in such areas to make good use of their land in an area generally considered less agriculturally productive. Through these NGOs and CBOs, the company can initiate capacity-building programs to enlighten the society members (farmers) on how to realize huge and high-quality yields and plant trees in their farms to help reduce desertification and counter environmental issues like climate change. That way, the company will have acquired a reliable supply of raw materials for their textile productions and at the same time contributed to solving societal and environmental issues in the given locality.
A Real Company Applying TSI
Mars, Incorporated is a great example of a company that applies TSI principles. Its main products are coffee and cocoa. They work together with NGOs who work with small farmers to enlighten the farmers on how to realize the significant and excellent quality of coffee and cocoa. This helps them to create a market for the farmers as they establish a reliable supply of raw materials for their business. While other companies that deal with similar products complain of the fear that the supply of such raw materials may be unsustainable in the near coming future, Mars, Incorporated is assured of a stable supply of the raw materials thanks to their TSI program. This program is no doubt beneficial to the company, society, and the environment at the same time.
Conclusion
If the corporates wish to participate significantly in societal development and bringing solutions to the problems faced by societies, they should consider implementing Total Societal Impact rather than Corporate Social Responsibility. TSI brings benefits to both the business and society. TSI will also bring about more sustainable solutions, as compared to CSR. National governments and international organisations such as United Nations (UN) should support TSI and develop policies to ensure that all parties (businesses, investors, politicians and lawmakers and other stakeholders in the business world and various industries) are included.
