In 1929, the dean of Harvard Business School, Wallace B. Donham, said in a speech: “Business started long centuries before the dawn of history, but business as we now know it is new—new in its broadening scope, new in its social significance. Business has not learned how to handle these changes, nor does it recognise the magnitude of its responsibilities for the future of civilization.”
It’s safe to say that more than 80 years later, business has recognized its responsibilities, through the evolution of corporate social responsibility programs. And in 2011, the progress made in CSR has been significant, says Larry Parnell, associate professor of strategic PR at George Washington University’s Graduate School of Political Management—great not only for businesses and communities, but also for PR professionals.
“I continue to believe that CSR is the best route for PR pros to get the proverbial seat at the table—provided they employ best practices that became more prevalent in 2011 and will be even more common in 2012,” says Parnell.
CSR’s rise in 2011 is also noted by Dave Stangis, VP of CSR at Campbell Soup Company. “I’m seeing CSR leadership everywhere—from the world’s largest companies to those privately held,” says Stangis, “I’ve been preaching CSR integration since the ’90s and it is great to see it coming to critical mass.”
What Stangis can’t stand are pundits who question the value of CSR, saying it’s a fad and a waste of time.
“Would someone please let them know we can’t hear them because we left them at the station years ago?” says Stangis.
Pundits aside, CSR is looked at positively by consumers, as a Cone/Echo CR Opportunity Study released in October 2011 found 81% of consumers worldwide say companies have a responsibility to address key social and environmental issues—and beyond just their local communities.
And just how did public relations do in communicating CSR issues in 2011? PR News got the CSR communications highlights and lowlights—as well as top trends to look for in 2012—from a variety of CSR executives.
Their verdict? Corporate social responsibility’s reach is spreading throughout more organizations, and the programs are being tied to product launches and the business bottom line. Now that’s progress. PRN
Carol Cone: Managing Director, Brand & Corporate Citizenship, Edelman
What illuminated the CSR space in 2011? The January 2011 Harvard Business Review cover story by Dr. Michael Porter had our clients, prospects and friends buzzing about “shared value.” It seemed like everyone flipped a switch at the same time: Don’t just give away money, even if it builds corporate reputation; instead explore issues that are in significant alignment with the core business.
Key CSR trends in 2012: First, greater recognition that employees are the engines for organizational innovation; second, a growing demand for integrated reporting, which combines financial and CSR metrics; and third, the use of 360-degree communications to tell CSR stories, which will be more humanized in 2012.
CSR action communicators at smaller organizations should take in 2012: Align programs to support business objectives; focus on the most promising opportunity and cull those on the periphery.
Bill Morrissey: VP of Environmental Sustainability, The Clorox Company
Most significant CSR accomplishment within at Clorox in 2011: We produced an integrated report that combined our financial, environmental, social and governance performance. It’s one of the first integrated reports in the consumer packaged goods industry, and one of a fairly small number produced today in the U.S.
What distinguished the CSR space in 2011? Cross-industry partnerships. Earlier this year, Coke shared its 30% plant-based packaging technology with Heinz. Expanding production volumes with Heinz brings the unit costs down and makes this kind of investment much more palatable. Open innovation will drive real change in the CR space.
Key CSR trend in 2012: Consumers’ increased expectations for transparency about the products they use and the companies behind them. Clorox was among the first major consumer packaged goods companies to launch a voluntary product ingredient communication program for its cleaning, disinfecting and laundry products in the U.S. and Canada.
Jonathan Yohannan: Senior Vice President, Corporate Responsibility, Cone
Most innovative in CSR approach in 2011: The Patagonia “Don’t Buy This Jacket” campaign directly and boldly addresses the sustainable consumption issue with consumers. The brand is running toward its business impacts and addressing them in a way that’s appropriate and authentic.
What distinguished the CSR space in 2011? Brands using technology to communicate and engage with consumers around their business impacts—using mobile apps to empower consumers to understand ingredient safety and make the right purchase decisions, for example.
CSR blemish in 2011: The disconnect on the parts of executives between the impact of business policies and impact on reputation. For instance, Bank of America unveiling $5 fees only to retreat after backlash in the midst of the Occupy movement, the mortgage mess and the U.S. government bailout.
Key CSR trend in 2012: Shareholder activism. Groups will continue to elevate and apply pressure on businesses to be transparent and evolve business practices.
Tara Greco: Senior VP. Corporate Responsibility, APCO Worldwide
Most uplifting CSR approach for 2011: Marks & Spencer’s carbon neutral bra, which outsold bras in other lines by 40%, proving that CSR can be tied to positive sales.
CSR blemishes 2011: In the U.S., guidelines for carton marketing need clarity. Consumers are confused as to what benefits these products have. When there is a clear message, cause marketing can be successful, but now it’s like the Wild West.
Key CSR trend in 2012: CSR integration across the business. Why? The investment community is more interested in CSR. The number of unique Bloomberg users of environmental, social and governance (ESG) data is up 50% this year. That’s significant.
CSR action communicators at smaller organizations should take in 2012: Large or small businesses—but it’s more critical for small businesses—should inform employees and excite them about CSR. Make sure they are telling the right stories, as they are your best ambassadors.
CONTACT:
Larry Parnell, [email protected]; Dave Stangis, [email protected]; Bill Morrissey, c/o [email protected]; Carol Cone, [email protected]; Tara Greco, [email protected]; Jonathan Yohannan, [email protected].