What do you think when you consider the definition of the word ‘asset’? Whilst they come in many different forms – fixed, tangible, intangible – ultimately, an asset is an item of value.

Assets can be managed and measured. They can increase and decrease in value. They can be gained, they can be lost. However, when organisations consider their portfolio of assets, it’s only a few trailblazers that incorporate arguably the most defining competitive advantage for economic growth within this index: their people.

Corporate Social Responsibility (CSR) is an understanding that the actions a business takes and the decisions it makes, have an impact on society and the environment that must be acknowledged.

It’s a beyond compliant approach to business operations known as ‘social practice’. It is taking the socially conscious effort to honour ethical values through considered business delivery to not only respect but drive positive change through Corporate Social Responsibility (CSR) to people and the communities in which we live.

Moral business ethics are underpinned in legislation and in the UK, we’re all fortunate to have corporate governance that embeds a benchmark of best practice specifically when it comes to social labour. Whilst we are seeing a transition into a socially responsible approach to extend into corporate environmental and economic impact, to date most mandatory legislation focuses on disclosure rather than directive.

Stakeholder capitalism is a management theory that is prevailing its way back onto the corporate agenda. It’s the strategy concept that focuses on companies’ stakeholder models which recognise universal priorities, arguing that alignment of collective needs (not just the shareholders) is the only way to sustain longevity in successful business operations.

In business, the default has been to rely on senior governing bodies and shareholders to drive the priority memorandum; this way of working is swiftly not only becoming dated, but damaging.

Stakeholder capitalism seeks to emphasise the benefit of recognising the priorities of all those who have a ‘stake’ in driving the success of companies. It is a stakeholder model that acknowledges the customers, the employees, the suppliers etc. in addition to those in the driving seat, the shareholders.

This stakeholder model concept is about recognising the pivotal importance of those both backstage and frontstage – the global audience and the global auditorium.

Unsure of your stance – ask yourself this: are you striving for long term value creation for all those involved over short-term profit and wins?