The transition of CSR from a useful “add-on” for brands to a “must have” is generally agreed upon as a Good Thing: organisations across the globe are now aware of the necessity of sustainable business and responsible corporate citizenship.

 

But this new prominence has made it harder for brands to negotiate the marketplace, as it becomes increasingly swamped with businesses promising sustainable behaviour. We asked sustainability experts whether there was still any competitive advantage to be gained from displaying strong CSR.

 

“I think displaying strong CSR enhances competitiveness more so than ever – but only as long as your CSR programme has integrity. Sustainability is becoming “business as usual” for many organisations, but familiarity certainly breeds contempt, so to stand out you need to be clear on your messages and ensure that your CSR activities are logical and relevant to your brand. Kyocera Mita has focused much of its CSR activity on helping customers to reduce the environmental impacts of our products during the usage phase. We also work with our local council on business issues affecting the area, as this is something where we can lend relevant expertise.

Clarity of communication and consistency is important. Customers are far more cynical and savvy than they used to be when it comes to assessing an organisation’s claims and any inconsistencies will stick out like a sore thumb.

 

In some ways, the proliferation of companies that are putting more focus on sustainability lends the issue a measure of credibility. Of course there can be an advantage in being first to the party, but unless there is a subsequent groundswell of interest in the issue, an organisation can be prey to the “so what?” factor. What matters in a crowded market is that CSR activities have integrity and relevance.

 

We’ve begun to witness the phenomenon of “values-matching” in the corporate environment, with organisations looking to work with those who share their approach to corporate citizenship. This leads to business opportunities and thus makes it much easier to prove return on CSR investment. It’s important for companies to be able to demonstrate that they have a coherent approach to corporate citizenship in order to seek out and win these values-matching opportunities.

 

The only way to avoid accusations of inauthenticity is to be completely up front and open about your CSR activities, and the motivations behind them. We believe that commercial success is a logical result of acting honourably in the world: CSR is therefore an important element of success.”

 

“CSR has changed a lot in the last 20 years. Companies are no longer considered good corporate citizens simply by supporting local charities and minimising their impact on the environment. They are completely re-considering how their products and services can have a positive social and environmental impact, while still supporting business innovation, growth and profits. 

 

Charities too, no longer just want hand outs, they want to add value. Because of this, CSR has become about creating economic value in a way that also creates value for society, by addressing its needs and challenges.

 

At VocaLink, our CSR initiatives include supporting the Watford Mencap Children’s Centre. The Centre supports children with disabilities and needs £200,000 a year to run. VocaLink recognised that it could offer Mencap something of more value than a financial donation. We provided the charity with a channel to market, through an art exhibition that auctioned off paintings by Mencap’s children, where VocaLink customers were invited to create an audience of bidders. This gave VocaLink an opportunity to meet and network with its customers, and ultimately improve its relationships and Net Promoter Score. 

 

Strong CSR also improves advocacy among staff, supporting the principle that your employees are your greatest asset. At VocaLink we publish a CSR report annually and also conduct a staff survey to measure the impact of CSR on staff learning, development and motivation. 87% of staff felt inspired or motivated by CSR in 2009 and this rose to 94% in 2010.”

 

“In our modern world of twenty four hour media and the ever increasing sprawl of online social networks it is rather de rigueur to be cynical and scoff at organisations that attempt to demonstrate that they are being responsible. Companies are to some extent currently caught between a rock and a hard place with this issue. To my right we have the shareholder value disciples that write about enterprises wasting their money on pointless “do-gooding” efforts. And on my left we have the campaigners (and not infrequently politicians) who seem to think that most corporate activity involves some sort of suspect “stuff”. This corner usually argues that CSR is really a PR inspired camouflage to divert unwanted attention from all the dodgy things the company is actually getting up to.

 

Of course both sides are completely missing the point because they don’t understand the relevance of CSR concepts in the first place. Public opinion has changed over the last few years. Businesses are expected, perhaps more than ever before, to be responsible in the conduct of all of their activities. That doesn’t mean they have to get things right all of the time. But it does mean that have had to respond to this change and demonstrate that they have done so. Today’s successful enterprises understand this, have embraced the change as part of what they do and reflect this within their branding, marketing and communications.

 

The strongest message I have to companies wondering whether to hoist their CSR flag for public inspection is not why, but why not? If you’ve got it...why not flaunt it.”

 

“Of course there is still advantage in displaying CSR, but it’s not about CSR washing or PR (although this is important), it’s about running your business or organisation better and ensuring CSR is integral. 

 

It’s about the best use of resources and not abusing your power on any level. It’s about sustainability. CSR, if environmental, will be intrinsically linked to Human Rights, whether that be the workforce or the people that are affected by the organisation and its actions. McDonalds is a good example. 

 

In any sensible business, the board should be helping to drive CSR. It affects the bottom line if done correctly. Charity support motivates, thinking about the local community will help recruitment, the environment makes things sustainable and giving the consumer a better choice will in the end supply a known demand, which can be seen in action with fair trade and organic brands such as Green & Black’s.

 

I can’t see how there’s any such thing as a ‘less authentically responsible’ brand: companies and organisations that lie will be found out, and companies that only act sustainably for reputation’s sake are still making a difference. But you can use great PR, integration with other marketing activities, direct consumer engagement, and of course word of mouth and social networking to distinguish your CSR activities from others. 

 

The brands that really stand out in CSR are those that make sure it’s integral to their business. In The Body Shop it ran through every activity; Green & Black’s changed the chocolate bar industry; People Tree put ethical fashion on the map; and even utilities businesses such as Thames Water have changed the way we think about water. But it takes a long time.”

 

“During the mid nineties, we were one of the first companies to publicly commit to sustainability and to fully embrace it as a business model. We aim to be the first fully sustainable business by 2020, a goal we call Mission Zero. To us, Mission Zero is not about CSR and compliance; it’s about fully understanding and utilising the business benefits that sustainability can bring and embracing it wholeheartedly. 

 

Sustainability has brought our costs down, improved our products, and inspired us to look beyond what we thought was possible to launch pioneering products and services. We’re also recruiting the best people from the world’s biggest brands, which is unusual for a carpet tile manufacturer. And our commitment to Mission Zero means that people are staying for longer. 

 

It’s encouraging that an increasing number of businesses are embracing sustainability, but this also means that transparency is more important than ever. The rise in ‘greenwash’, the practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service or company, is damaging to both the environment and to industry. A scheme like Environmental Product Declarations involves disclosing what is typically considered confidential information about how our products are made. To make true progress towards sustainability and wipe out greenwash, companies need to focus on the facts alone.”

 

“The current financial climate means that value for money is more important than ever for consumers, whilst cost efficiencies and impact on the financial bottom line are priorities for businesses, putting increased pressure on budgets and potentially pushing corporate citizenship initiatives lower down the board’s agenda. 

 

However, it is crucial that businesses take a long-term view when it comes to their approach to CSR, so that they can capitalise on the merits it can bring in terms of brand building, retaining and attracting key staff, and winning future contracts. Investing in CSR now will give businesses a competitive advantage in gaining market share when the economy begins to recover and when consumers, customers and business partners begin to make purchasing decisions that are based on factors wider than price. 

 

The Grant Thornton International Business Report 2011 reveals that 56% of businesses still cite public attitudes and recruitment/retention of staff as key drivers in implementing CSR initiatives, demonstrating the importance of public opinion in shaping businesses’ attitude to CSR, and that companies recognise that adopting a proactive approach to wider corporate social responsibility issues can help them stand out in a crowded marketplace. However, reflecting the global economic climate, tax relief and governmental pressure had increased in importance since 2008, showing that businesses are increasingly making CSR decisions based on financial criteria. 

 

Clearly there are rewards to be gained by investing in these initiatives, and it’s important that developed countries continue to invest in this area. Companies in emerging markets are increasingly focusing on CSR in a bid to differentiate themselves and establish their credentials in the global marketplace. Companies that ignore the issue now may find themselves left behind when the global economy begins to recover.”