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Edition 5 - September 2004

Much More than a Gimmick: why CSR Matters

CSR must form part of the 'core DNA' of a company

Brendan May, the new Head of Corporate Social Responsibility for Weber Shandwick, UK & Ireland, says businesses ignore CSR at their peril.

‘Can you look into getting me some of that CSR? We need some CSRs. Tell me what is involved – sent from my wireless handheld’. Thus read a ‘from the top’ email sent to a friend of mine. He forwarded it to me for my advice on how to proceed in framing that company’s CSR policy.

Less than inspiring stuff, although for the company in question it could mark the start of something huge. It also reminds us of how far corporate social responsibility has yet to travel in persuading businesses across Europe, let alone the rest of the world, that CSR is not only desirable, but essential to long term commercial success. There are several obstacles to this.

First, much of what is written about CSR is irretrievably dull. For all the valiant efforts of CSR experts to bring life and colour to the auditing of waste policy, light bulb use and the endless varieties of environmentally sound ink which are now available, most people glaze over, especially in the PR industry. For every shining example of a major consumer-facing CSR initiative, there is a boring treatise on the triple bottom line.

Second, although some people have been practicing CSR in all but name for well over a century (think of Quaker-founded companies like Cadbury) there is no long-established way of doing CSR. It is the subject of a growing number of university theses (who reads those?) and there are one or two very good books out there. But there’s no instruction manual. And few busy corporate executives would have the time to read one.

Third, CSR is still too often misunderstood as a bolt-on product, a box-ticking exercise, or an optional activity. Companies sometimes assume things they are doing constitute CSR when they don’t. CSR is not about philanthropy (although this might form part of a CSR programme), and it is not about recycling paper (again, this would be taken as read in a good CSR policy).

Fourth, companies struggle to get PR benefits out of doing the right thing. Naturally, the media are more interested in stories about people doing the wrong thing. Some companies are reluctant to place themselves on pedestals by sticking their neck out and raising the profile of their green or social credentials in case this makes them a target. Activists tend to target companies who make CSR claims over those who make none, even if this means attacking the goodies and ignoring the baddies. This quirk of activists’ tactics understandably makes responsible companies nervous.

Lastly, there is still some debate over the bottom line benefits of doing CSR at all. Interestingly, no companies who have been doing CSR properly for years pursue this argument; it is however the excuse of choice for those who are lagging behind.

CSR is not easy. It isn’t a product you can just buy, which is why that email I received was so revealing. It is a state of mind and must form part of the "core DNA" of a company if it is going to be worthwhile. Ideally any company’s commitment to corporate responsibility will be endorsed and owned by those at the very top of its leadership.

CSR is a particularly difficult area for the PR industry. Ask most CSR practitioners or NGOs and they will tell you categorically, even scornfully, that CSR is "not about PR". In a sense it is a fair point. There must be substance behind the spin. If it is a half-hearted attempt to keep NGOs at bay, it will not generate value for money or raise profile. In that sense there is no point in using PR if there is nothing substantial to communicate.

On the other hand, all substantive actions will be wasted if companies do not hire the best in the business to communicate their CSR work loudly and clearly. In addition to its societal benefits, CSR is providing entirely new angles for businesses to communicate with their audiences. At Weber Shandwick, we have the best people in the world to capitalise on this, combining high-level CSR experience with that of former journalists who have been at the very highest levels of the media.

It is generally agreed that in global terms CSR is most advanced in Europe. In Britain we like to think of ourselves as the leaders within the EU, although in fact the UK has no monopoly on the issue. France already has CSR legislation in place requiring major companies to report on their social and ethical performance. In the UK we tend to prefer voluntary routes, for now, although the British Government's Operating & Financial Review looks set to make environmental and social reporting in some form a legal requirement for listed companies. At EU level, a CSR framework is at a fairly advanced stage of development. There is little doubt that environmental and social legislation will increase across the region in the next decade. Just two of the huge threats faced by the planet - climate change and obesity - will guarantee this.

Across Europe there is growing interest in the social and environmental ramifications of a globalised world. Many citizens in Europe are realising that if a world of 6.1 billion people is already running out of resources, its prospects with 9 billion by 2050 are uncertain to say the least. Internet-driven NGO activism is helping raise awareness of these issues as never before. No sector of commerce will escape ever-higher levels of scrutiny. Somebody, somewhere is now calculating the social and environmental cost of every product on sale.

CSR, designed and communicated to the highest standards, is about corporate risk management as much as it is about improving the planet. It is not only monitored by consumers, but by regulators, investors and insurers. This means companies will have to design, implement and communicate greater accountability, transparency and substantive action than ever before.

It is therefore not a PR gimmick and anyone doing it well has a right and indeed a responsibility to shout about it. Increasingly, the question for companies is no longer about the cost of taking CSR seriously, but the price of failing to embrace it. Our role at Weber Shandwick is to help them do that, and tell the world.

© 2004 Weber Shandwick