The socially responsible leader should practice the following two things:
– Recognize the aspects of core subjects of social responsibility which applies to the company. GRI states these aspects under the Materiality principle. This is a very concrete exercise. Get together with business line managers and identify the significant economic, environmental and social impacts and the company’s actions which substantively influence the assessments and decisions of stakeholder.
– Engage stakeholders in planning and implementation of the strategy. The social responsible leader should care about the environment in which the company operates. By environment we mean people and places. This is the second concrete exercise each executive should do. Get together and identify the stakeholders. Who are the people the company is affecting by its activities? Who are the stakeholders who can influence the company’s decisions on short, medium and long term? The communication with stakeholders is key for the credibility of the company.