CSR - Valuable if Done the Right Way
Category: Blog - February 01, 2008
Does it make you raise an eyebrow when you hear about energy companies trying to get you to use less energy? Or when recreational vehicle (snowmobile, ATV) companies develop programs to protect nature and the environment? Maybe it should.
CSR – or Corporate Social Responsibility – is one of the latest “buzz ideas” that has taken Fortune 500 companies and small businesses by storm over the past few years. (There’s even a newswire dedicated to it.) Millions of dollars get pumped into company budgets each year for this loosely defined idea. Regarded as a minor PR or marketing tactic years ago, top executives all over the world are now warming up to the idea of CSR being a top brand-building and sales initiative. But, depending on how a company implements its social responsibility strategies, this idea of serving society for the greater good can sometimes have an adverse affect on the company.
Beyond Good Company is a solid read on CSR and corporate citizenship, including an interesting and unbiased look at how business strategy is now aligned with CSR and how “these issues pose potential risks and portend significant opportunities.” While most of these companies have good intent, many CSR campaigns focus on fixing a problem their company directly causes. Therefore, it’s important companies do their research and identify the possible risks and backlash their efforts could cause.
CSR campaigns can be a double-edged sword and, if not properly developed, the time and money spent on CSR campaigns can have an damaging affect on business – one of the reasons top companies have developed CSR departments and spent millions of dollars to hire and obtain the most qualified PR and marketing minds to drive these strategies. Companies today are not only selling products and services, they are selling the idea they are conscious of the world’s new and changing needs and are better “citizens” than their competitors. As a result, companies work to add more value to the company’s mission – something they hope the consumer recognizes.
The value is where companies need to be careful. Some CSR professionals argue it’s important to focus a CSR campaign on issues that directly try to reverse a negative affect a business causes. While this may make sense in a majority of the cases due to a company’s profile, I would argue that for some companies it makes sense to stray away from the core business and look elsewhere to still be a corporate leader in society – at least do sound research to prove it makes sense. Too many times we’ve seen a PR crisis develop from an under-researched and forced CSR program focused on improving an image. (See Walmart.)
Developing a program that makes sense to your core customer (beauty products – breast cancer awareness, shipping services – armed forces support) will likely put a company in a position to be an advocate without the unnecessary risk of PR backlash by trying to fix a problem the company directly causes. For example, a multi-national shoe corporation could eliminate the risk of being viewed as hypocritical if they decided to donate shoes and help inner city youth instead of being a partner in advocating change in international labor laws.
While trying to prove its value to understandably skeptical consumers and CEOs, CSR continues to face an uphill battle when proving its worth to the bottom line and sales-driven minds of business leaders. But one thing these minds can’t deny: CSR has built itself as a pillar of business models and will continue to shape and influence business models in the future. Hopefully increasing the value of society while increasing the bottom line.
Matt Hansen
Account Supervisor
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