Just when you thought you’d mastered corporate governance... CSR arrives on the scene.
The World Business Council for Sustainable Development defines it as ‘... the continuing commitment by business to behave ethically and contribute to economic development, while improving the quality of life of the workforce and their families as well as the local community and society at large’.
The Australian Human Rights Commission describes it as ‘corporations having a degree of responsibility not only for the economic consequences of their activities, but also for the social and environmental implications.’
No longer is it sufficient to simply provide jobs, pay taxes and provide customer service. It’s all about your organisation committing itself to the present and future wellbeing of society, and actively supporting a sustainable global economy. CSR is widely recognised as a major contributor to company reputation – and we all know how important that is to business success – inevitably impacting on share price and product sales.
Potential employees are more likely to seek out organisations who can demonstrate a commitment to CSR. An organisation’s CSR activities can have a measurable influence on employee morale and retention. Employees who are satisfied with their organisation’s commitment to social and environmental responsibility are likely to be more positive, more engaged and more productive than those working for less responsible employers.
Ask yourself this. How highly is your organisation regarded in the local community? What measure does it take to protect the environment? Does it actively support good causes? Does it look after its employees? Does it have a reputation for caring?
There is increasing demand for organisations to be more open, more accountable and willing to report publicly on their performance in social and environmental arenas – no matter what their size or activities.
Common views on CSR range from...
‘It is fundamental to the positive reputation a business builds in the minds of its employees’
‘It distracts from the fundamental economic role of businesses’
‘It is nothing more than superficial window-dressing’
‘It is an attempt to place more control over powerful multinational corporations’
“Organisations with no measurable commitment to CSR are less likely to attract top performers”
What is your view?
Tony Heywood is a Fellow of the Design Institute of Australia, founder of Heywood Innovation in Sydney Australia and co-founder of BrandSynergy in Singapore.
tony@heywood.com.au
www.heywood.com.au
www.brandsynergy.com.sg
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1 comment:
Tom,
An excellent and thoughtful coverage of the topic which asks the right question.
My former employer where I was a senior VP had an outstanding commitment to the United Way and also allowed employees to choose one of their own charities to support as the United Way was an executive decision.
In the early 1980s when we were struggling to win our customers' loyalty our President told those of us he assigned to work with him on the annual fund raising campaign that this was an opportunity to show the community the skills, expertise and caring our managers and employees had for the communities we served. It was also an excellent training ground for our loaned staff who worked directly with the campaign for several months as a development opportunity. These people came back refreshed and revitalized and they were never the same as their commitments to the community were strengthened through their heightened awareness of the needs of others.
I would add one caveat to the article. Employees who feel the company doesn't care about them or their needs will not be enthused and energized by commitments to CSR. It won't raise their engagement or loyalty scores unless the commitment to CSR is mirrored in the internal treatment of the employee base.
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