From the socio-economic corporate social responsibility, it is imperative for the organisation to take care of the stakeholders, in this case the employees and vendors. Hence they should focus not to have things from companies that mis uses human resources and take a balance approach to safe guard the employee’s interest by looking out for alternative business and approaches and other management level cost cut measures without hampering the employees and their conditions.
For an organization, the employees are its biggest assets,as they are the ones who build the culture and work environment, and take it to higher levels of profitability through hard work and team effort. These employees must be taken care of so that they can always feel a sense of belongingness with the organization and feel motivated enough to give their cent percent efforts for the growth of the company. Having said this, the company must also remain competitive in the marketplace by offering top of the line products and services and employ measures to be cost effective in all areas to have a position of sustainable growth. However, this cost effectiveness must not come at the cost of employee welfare and wages. An unhappy employee can never contribute to growth in any form, instead such attitude will prompt them to leave and look for greener pastures.
Other stakeholder, the vendors are also essential part of the business, because an organization must take the responsibility of everything that happens at a vendor’s place. Be it poor work conditions, unequal and insufficient wages, child labour, unethical sourcing, corrupt work practices, gender discrimination and defying of pollution control norms or other ill practices. Any organization having alliance with any such vendor is a party to all these evils, and such dubious distinction can mar the reputation of it in no time, however big or famous it may be. Therefore, it is a company’s responsibility to avoid the tainted vendors and closely monitor them for the compliance of norms of ethical and sustainable work practices already agreed upon.