What is social balance?

The analysis of the social balance by an organization in the territory in which it operates is very important in view of the expectations that it casts on it.

Specifically, the social balance can be defined as the instrument in which they are detailed costes and benefits of the impact of the actions or activities that a company undertakes in society (or in a specific territory).

Thanks to this type of balance, any user can know if the company complies with the provisions of social responsibility and if the actions it undertakes go in favor or against the ethical-moral principles of its own philosophy or of society in general. . For this reason, the social balance must include both the positive and negative aspects that have been carried out.

Positives may include job creation, staff training, wealth generation, and donations. Measures taken to reduce (negative) social costs and acts that provide positive added value to society should also be included.

Regarding the social costs (or negative aspects), there are those that have to do with the environmental pollution, acoustic and visual. Also included are those activities that generate social conflicts, work accidents, excessive exploitation of natural resources, illnesses, unemployment ...

Thanks to this concept we can observe the importance and repercussion of the activities undertaken by a in society. It is essential that we evaluate in the most optimal way possible how we can improve these aspects, making the positive aspects more abundant than the harmful ones.

The degree of business involvement due to the social impact of their actions will affect the attitude of the company towards the decisions it makes. It is always preferable that the company is involved in recording what it does, with special attention to improving it.