Then, there is also a school that sees a strategic business advantage to pursuing high profile CSR strategies (e.g. “green” business practices, targeted philanthropy, etc.) that intersect with niche markets it is interested in penetrating. These initiatives seek to build a positive affinity between the company’s (brand) and the new markets.
I guess there is a third category of businesses pursuing genuine, mission-based CSR strategies without an overarching financial interest. These cases are rare, particularly in challenging economic times when even the first two classes of CSR strategies experience some decline. In this third case, the CSR may be executed under a non-profit subsidiary of the parent company that is operated by its own executive leadership and governed by an independent board of directors. Company CEOs can be very instrumental in the development of this CSR category.
In sum, and more to the point, CSR is emerging as a broad array of strategies that range from self-policing to true altruism. Where any one company falls at any given time depends upon many forces acting both within and upon its core business.
Ernest Perry
]]>I’d also be willing to bet that many programs created out of the former turning into the latter.
I’d say if we even had all businesses utilizing programs that effected social improvements I’d be happy enough, regardless of which came first, the proverbial chicken or egg.
Good question!
Bill
]]>Thanks for participating and please keep coming back
Edison Reis
http://www.QualityAssuranceManagement.com
Rosana Tramontina Zuanetti
]]>There are only two reasons for a company to engage in CSR:
1. It changes brand recognition among the targeted customer base and is part of a revenue top-line growth strategy
2. It is part of the talent retention program - “we need to do CSR because our top performers will leave if we don’t do it”
Short of those two business reasons, anything else (e.g., “We all have an ethical responsibility to do something”) is at odds with the fundamental purpose of a company which is to generate profits in order to provide income/wealth to its shareholders.
Once you decide to do CSR for one of the two business reasons, then be specific about what makes the most sense for the company in the topic of its CSR commitment.
The major categories of CSR efforts typically are P, E, or F issues:
-Planet / Climate change
-Patriotism
-Poverty alleviation locally or globally
-Public policies or support for specific legislative referendums
-Economic development in the community (local jobs)
-”Feel good” topics like charities for children, animals, arts, healthcare
Whatever category you pick, be clear and exact about how the CSR affects either business reason 1 or 2 above.
Hope that helps.
]]>