Who’s Responsible?
What responsibilities do people have toward one another—and toward the planet? Does this change when people are part of a corporation?
We’re starting this next week of Financial Literacy Month with a discussion of social responsibility.
What does it mean to be socially responsible, and why is this important?
How can a for-profit company demonstrate social responsibility?
These are some of the types of questions kids will explore through a fun and focused activity from the FUTURES: Financially Literate Kids for a Financially Literate Society™ program, designed to help kids in grades K through 8 today to understand the importance of financial literacy to contribute as engaged and informed citizens in the future. Tomorrow’s leaders can even help to shape our society today. This game exposes kids to the big concepts that relate to social responsibility.
But Corporations Aren’t People, Are They?
First, ask kids to take a stab at defining social responsibility. Explain that it means that, as members of a society, people are responsible for the welfare of all citizens and we are also responsible for the health of the planet. When we apply this concept to business, it means much the same thing: corporations can and should find a balance between economic growth, or profit seeking, and responsibility to society and the environment.
This idea might sound very serious or hard to understand for younger students, but, when you connect it to what we expect the students in our classrooms and members of our families to do, there are many familiar undertones that helps to make this concept more relatable, even to younger learners. Social responsibility for corporations is about acting responsibly and making business decisions that don’t hurt people, animals, or the environment while still bringing in profits. It’s about striking a smart balance. Social responsibility for corporations doesn’t stop once the profits come in—that’s when the socially responsible work needs to keep going. Socially responsible companies and their leaders and entrepreneurs understand that it is through these profits that even more benefits can be realized. Profits can actually help corporations contribute more with, for, and to society by giving back, making differences, and adding value.
The 3 Ps
Socially responsible corporations focus on three Ps—people, planet, and profits. When a company takes care if its employees, community, and customers, it is focusing on people. A company takes care of the planet by being sensitive to how it manages its waste, air pollution, and safety practices. When a company conducts business in ways that care of people and the planet and also makes a business profit, the company is on its way to being a socially responsible company. What that company re-invests some of its business profit to help make the world a better place, the company is contributing as a socially responsible company in all 3 ways—people, planet, and profits.
Once kids understand a little more about corporate responsibility, they’ll have the chance to put these ideas into action through a creative business scenario. It’s time to create a corporate responsibility strategy focused on the three Ps: people, planet and profit.
If the Shoe Fits…
Imagine you’re the CEO of a new clothing and shoe company. Your task is to create a proposal for your employees and board members to vote on that demonstrates the three Ps—people, planet and profits. The proposal should address these points:
With your family or classroom, discuss the pros and cons of each proposal and then have everyone vote on the best proposal.
What makes the winning proposal stand out?
How does it successfully balance each of the three aspects of corporate responsibility?
Can you envision an even better proposal with the best single idea from each “P” category (people, planet or profit)?
BONUS!
As a bonus activity, have students research socially minded businesses online and then determine if any of the companies’ approaches overlap with the proposals they created. What other ideas did the businesses implement?
Visit Us Every Day in April
Tomorrow we’ll continue our series of posts for Financial Literacy Month with information about investing. Kids will become familiar with the stock market and learn key terms while taking part in some hypothetical stock purchases.
For more information about FUTURES: Financially Literate Kids for a Financially Literate Society™ for students in kindergarten through eighth grade or to download any of the 29 sections of the program, please click below.