CSR No Longer A ‘Nice Thing’ But a ‘Must-Have’

With a rapidly expanding audience tuning in to CSR activities,
it's impossible to ignore their growing influence on corporate
reputation. In the past 10 years, Cone's cause- related research
has documented Americans' increasing expectations of companies to
address social issues. A new study conducted last year by
Golin/Harris found that 74% of Americans say CSR is important to
their trust in a company. Seven in 10 Americans say they would be
willing to start or increase the amount of business they do with a
company based on that company's CSR record. And, according to
Environics' 2001 CSR Monitor, 80% of employees of large companies
say that the more socially responsible their companies become, the
more motivated and loyal they are as employees.

Even more compelling than the positive impacts of CSR are the
consequences of negative social practices. According to our 2002
Cone Corporate Citizenship Study, 85% of Americans say they would
be likely to speak out against a company among their family and
friends if they learned about a company's harmful social behavior.
As a sign that this "activist" trend is a global one, Environics
found a surge in the proportion of consumers worldwide who reported
that they had punished a company they perceived as socially
irresponsible in 2002.

The powerful influence of social responsibility - or
irresponsibility, for that matter - on reputation is why PR
professionals, as gatekeepers to and guardians of corporate brands,
are being required to embrace CSR as a must-do business practice.
According to a 2002 Jericho Communications survey, more than
one-third of Fortune 1000 CEOs assign the responsibility for
handling CSR issues to the corporate communications department. It
is becoming increasingly clear that CSR isn't only about how
companies behave, it's also about how they communicate their
actions and conduct to key audiences.

To help you execute and communicate CSR more effectively, we
offer the following considerations:

  • Define CSR for your company. Make sure that your senior
    executives are all talking about the same thing. CSR includes a
    broad range of complex internal and external business practices.
    Although they are vital components of the CSR mix, corporate
    philanthropy and community relations don't define CSR alone.
  • Build a diverse team. The development and execution of CSR
    strategies require a collaborative, concerted team effort. Create a
    decision-making taskforce that integrates and brings together a
    range of expertise and resources, including marketing, public
    affairs, community relations, legal, human resources, manufacturing
    and others. Put a formal process in place to approach CSR strategy
    development, ongoing implementation and continuous
    improvement.
  • Analyze your current CSR-related activities - and revamp them
    if necessary. Do your due diligence at the outset - understand CSR
    gaps and risks specific to your company. Research industry examples
    and cull best practices from leading case studies. Make sure to
    consider global trends, as Europe is far advanced of the U.S.
  • Forge and strengthen NGO relationships. The more than 300,000
    non-governmental organizations (NGOs) throughout the world are a
    powerful force on corporate policies and behavior, serving as both
    advocates and loud critics. Forge sincere partnerships with
    organizations that can offer you independent, unbiased insight into
    and evaluation of your CSR activities; provide expertise on social
    issues and developing global markets; and offer access to key
    influentials.
  • Develop a Cause Branding initiative. Create a public face for
    your citizenship activities through a signature Cause Branding
    initiative that integrates philanthropy, community relations,
    marketing and human resources assets. ConAgra Foods' "Feeding
    Children Better program," for example, is a multi-year initiative
    created to feed millions of hungry children through innovative
    partnerships, grant-making, employee volunteerism and education and
    awareness. This program recently earned ConAgra Foods the U.S.
    Chamber of Commerce's "Corporate Citizenship Award." (See PR NEWS,
    Oct. 13, 2003).
  • Walk your talk. Critics often assert that companies exploit CSR
    as a "PR smokescreen" to conceal or divert attention from corporate
    misdeeds and blemishes. Before introducing any new CSR initiative
    or drawing attention to good corporate behavior, make sure that
    your company is addressing stakeholder expectations of CSR at the
    most basic level.
  • Don't be silent. According to Cone's 2002 Corporate Citizenship
    Study, not only do Americans expect businesses to behave socially,
    the majority - nine in 10 - want companies to tell them how they
    are doing so. An overwhelming majority also say they prefer to find
    out about CSR activities from a third-party source, particularly
    the media.
  • Beware. Greater public awareness for your corporate citizenship
    record can be double-edged. Claims of socially responsible
    behavior, even sincere ones, often invite public scrutiny. Be
    prepared. Even if your company is not ready to proactively
    communicate about your CSR activities, be ready to respond to
    public inquiries immediately. Don't let the threat of public
    scrutiny keep you mute, though. More often than not, silence
    regarding CSR issues is translated as indifference, or worse,
    inaction.