Concerns about corporate social responsibility (CSR) occupy not only consumers
but managers too. Public expectations of ethical standards in business—
especially with regard to the environment and fair trade—are running high.
But what exactly is the business case for CSR? How should companies go about
shaping their ethical policies?
Erica Hauver
Llead partner of the sustainability and climate change practice at Price
Waterhouse Coopers
Attention on environmental protection and the scarcity of resources has
improved the business case for CSR. Organisations that are more
environmentally efficient can be financially efficient too and should be
able to cut costs. Consumers want affordable sustainable products; that’s a
challenge, but equally it presents a business opportunity.
Companies must understand what the issues are in their sector. These could be
about raw materials or labour and human rights issues in the supply chain.
Ty Jones
Head of corporate responsibility, Bank of Scotland Corporate
CSR policies are now closely related to corporate reputations so they’re a
part of business risk. In shaping CSR policies, organisations must have a
clear vision of what they want to do and be realistic about their goals.
Ambitions can mushroom and be difficult for smaller enterprises, especially,
to manage.
Getting an independent assessment of your policies is useful and you need to
maintain the dialogue with key stakeholders to keep abreast of public
expectations.
Brendan May
Managing director of Planet 2050, the corporate and sustainability practice of
Weber Shandwick
CSR affects a wide range of business relationships. A vital factor now is the
ability of companies to attract and retain talent. People want to know about
the ethical credentials of potential employers—they don’t want to work for
companies who end up with bad press on page one of newspapers. And investors
want to move away from businesses that are high-risk to those that are more
sustainable and don’t fall foul of regulation.
Jessica Sansom
Head of sustainability, Innocent drinks company
Minimising the negative impact your company has on the environment and the
communities it dealswith helps you save money and improve your business
relationships—from suppliers to employees. We sell drinks on the basis of
taste and health. If consumers like our ethics too, that’s good.
People also need to be aware of the accusations that can be made against them.
We’ve been accused of ‘greenwash’ recently over transport. We blend drinks
in Holland and bottle in the UK. We think it’s actually more efficient and
environmentally sound transporting in bulk, but we’ve had this challenged.
You have to be able to explain your policies.
Richard D North
Writer and broadcaster, media fellow, Institute of Economic Affairs
CSR policies can bring companies peace and quiet with consumers and
regulators, so in that sense there’s a business case for it. But consumers
can be suspicious now that CSR programmes are used to justify the charging
of premiums for goods and that it’s just a business “bolt-on”.
Businesses should not pretend to be something they are not and consumers are
now asking who is actually paying for some of these policies. I believe that
there’s a growing appetite for people to speak honestly to their own
self-interests.
