Corporate Social Responsibility
by Richard Broadbent
A successful brand image covers not only the goods and services a business provides but also the identity that it projects in the market place and how consumers think and feel towards it. A technique used by market surveyors is to ask customers how they would relate to a particular business if it was a chocolate bar, a beverage or a person. It is this emotional connection to an otherwise faceless corporation that is key to a long lasting and successful brand.
A good CSR policy can often be a good way of broadening the message of your brand and promoting a more positive emotional response from consumers. CSR is an initiative whereby companies integrate various social and environmental concerns into their business operations. The long term goal of CSR schemes are for businesses to ‘give something back’ to their local communities by either giving their services free of charge or by cooperating in social or environmental programs. These initiatives are often seen as mutually beneficial as CSR can lead to environmental sustainability and improved relationships with local communities whilst also providing the kick-back of enhanced reputation and exposure to new markets and consumers.
CSR has grown rapidly over the last decade in Europe since Jacques Delors set up ‘CSR Europe’ for leading European companies. In March this year, the European Commission tried to take this concept further with proposals for a European Alliance on CSR to make Europe a leading light on the subject. Indeed, there is a trend now for companies to report their CSR activities and audit them independently, although in April 2006 it was decided at a CSR Conference that reporting should remain voluntary.
It would seem that a good CSR policy does pay dividends. For example, when accused of causing an ‘obesity epidemic’ in the West, McDonalds and Coca-Cola could both point to their CSR activities promoting youth sport activities, sustainable environmental schemes and getting involved in local communities. This deflected much criticism and reassured consumers that the businesses they used incorporated a degree of self accountability. Again, not known for frivolously parting with cash, law firms in the UK have just celebrated their fifth annual Pro-Bono week during which solicitors and barristers gave their services, free of charge, to members of their local communities. By participating in this way, the law firms that took part enhanced their profile and reputation considerably for little loss to themselves.
Another advantage of a robust CSR policy is that it is an excellent way of enticing prospective employees. In the current graduate recruitment market most young bright things have a sense of moral and ethical duty inspired by gap year experiences or charity work whilst at University. A good CSR program is increasingly not only an attractive but also deciding factor for people who want to feel that their job is capable of giving ‘something back to society’. A business that can provide employees with this added feel good factor in their jobs will often find that its employees are more motivated and dedicated to their firm and its brand message.
For a business seeking to expand its brand image a good CSR policy provides a useful way forward. In the long run the benefits out weigh the costs, both to a firm’s reputation and future recruitment and demonstrates a degree of self accountability that is attractive to modern consumers
