Performance is the execution of an action and something accomplished.
- Economic Performance is a function of its success in producing benefits for its owners in particular, through product innovation and the efficient use of resources.
- Economic Performance is very important to a firm's stakeholders particularly its investors or owners, because performance eventually provides them with a return on their investment.
Triple Bottom Line: the mesurent of business performance along social, environmental, and economic dimensions
- People will translate talk about Economic Performance into just talking about profit.
- An organization makes a profit when its revenues are more than its costs in a given period of time, such as 3 months, 6 months, or a year.
- Customers play a BIG role in economic profits
- Profits accrue to firms because customers are willing to pay a certain price for a product or service, as opposed to a competitor's product or service of a higher or lower price.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
In the business world, Social and Environmental Performance is referred to as Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) is a concept whereby organizations consider the interests of society by t taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities, and the environment in all aspects of their operations.
This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families, as well as for the local community and society at large.