Skills Guide - Corporate Social Responsibility

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What is Corporate Responsibility? Corporate responsibility, CSR, sustainability or responsible business practice are some of the terms used to describe how businesses are trying to align their values and behaviour with the expectations and needs of their stakeholders – customers, investors, employees, suppliers, communities, national & local government and society as a whole. It’s about how businesses, through their operations, products or services, manage their impact on society and the environment. Corporate responsibility is not cheque-book philanthropy. Although an important activity and one that can form part of a corporate responsibility strategy, giving cash to charitable organisations is not a true holistic understanding of corporate responsibility. Corporate responsibility is also not the same as public relations. CSR should not be seen simply as a tool for a company to improve its image. To be successful it should be embedded in the organisation at every level. Corporate actions need to match CSR claims. Responsible businesses not only think about short-term returns but also about building longer-term sustainable businesses that create economic, environmental and social value. CR is about business strategy. It needs to start from the very top of the business, be supported throughout, and reflect the values that make the business. Michael Holland, EVP for CSR – New York, Edelman has called CR, “A belief system for a company. A good example of using this belief-system approach is that of Marks and Spencer. That company’s corporate responsibility strategy is reflected in everything it does. The approach is called Plan A – because there is no Plan B. The business case for Plan A is robust and M&S is proving that a sustainable business can be profitable. If corporate responsibility is seen just as something to bolt-on to central operations of a business with no alignment to it then it will inevitably backfire. Stakeholders understand the language of CR and if they think an activity has been initiated to try to mask other behaviour or actions they will perceive that the firm is not being true to the values of CR. Why is it important? Reputational risks Trust in business has decreased dramatically. According to the 2012 Edelman Trust Barometer, public trust in business was 38%, falling to the levels it identified in 2009 after the financial crisis. Not surprisingly banking and the media were the least trusted sectors. The Edelman Trust Barometer also indentified that 72% of people believed it was important for a company to be involved in solving social and environmental problems. The Trust Barometer states that the public’s scepticism makes message repetition necessary and that 64% of people need to hear something three to five times before they believe it. If trust in business is to increase, the public needs to hear about it time and time again. Stakeholders are more empowered than ever before and consumers are making betterinformed decisions on how they want to deal with global companies. New communication channels and non-stop chatter across multiple social networks have created an “always-on” world where stakeholders can create and distribute content and react to messages in real time. One person can alter a long-standing corporate reputation in a single tweet or by posting a mobile video short on YouTube.

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Global mega trends The issue is not just about concern for reputation management. Businesses are managing their own sustainability by pursuing goals that go far beyond public perceptions. Corporate responsibility is essential for the long-term sustainability of a business. Many businesses are now seeing that engaging with communities is not just a PR exercise but fundamental to market advantage. It is part of building a competent, strong and competitive business. This is where the real change will happen. By 2050 there will be 9 billion people on the planet. Every business must consider what its role is in delivering sustainable quality lives for the 9 billion people. By 2050 many traditional business models will no longer be feasible and certain products/services will become obsolete or their production will be untenable because of resource constraints and other changing external factors. Businesses must develop their thinking to challenge conventional business models to ensure their business prospers by responding in the right way and at the right time to the issues that sustainability raises. Responsible business behaviour is not just about a business reducing a little waste or a little carbon. It is about fully embedding transformational thinking into every aspect of the organisation. It requires leadership at the highest level, and CEOs and other business leaders are best placed to deliver this. Value to bottom line At the same time, the responsible business agenda continues to thrive and global brands are shifting their focus to broader and deeper issues surrounding sustainability, accountability and governance concerns; adopting new models that boost their bottom lines (61% of people are more likely to buy from companies with good reputations) and trying, with varying success, to communicate that message effectively to influence and educate their stakeholders. What does it mean to a PR professional? The importance of understanding and addressing the responsible business agenda is critical to a PR professional. As the above information demonstrates there are risks, but there are also great opportunities if it is done right. If a company isn’t doing it right in the first place then there’s a problem, but many communications professionals are in a unique position where they are able to advise and guide a business to ensure that the corporate strategy will withstand public scrutiny. While global companies can see the reasons why they should adopt and maintain their CSR strategies, many communications professionals are wondering how they can effectively convey this message to their audiences and improve their brands’ reputation. The activity that a PR professional might be asked to communicate under the CSR banner is powerful stuff. A client might have received an award for having policies that encourage and support a diverse workforce; they might be involved in recruiting ex-offenders or young people from the care system; a client might have made their business carbon neutral or have set up a long-term, sustainable partnership with a charitable partner. If this activity has been done by a business because they believe it is the right thing to do as a responsible business with clear alignment to their core business operations, then a PR professional should be confident shouting about it. If it is an ill thought out, half-hearted attempt to be seen to be doing the right thing, then it will neither generate value for money or raise profile for a business. Social media and corporate responsibility Social media can be a valuable channel through which a communications department can talk about sustainability issues. Mathew Yeoman, social media sustainability consultant and

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author of #FAIL: The 50 Greatest Social Media Screw-Ups writes: “Social media is underpinned by the need to be transparent and authentic and is dependent on collaboration and a strong community. Those values also are crucial in practicing sustainability so it was an easy leap for companies to embrace social media as a way of communicating sustainability and CSR initiatives.” However, as already mentioned already in this guide, it’s impossible to use social media for communicating CR activity if a business isn’t behaving responsibly. In fact, social media can become a dangerous communications channel if a business uses it to communicate or defend an activity that has no alignment to core business strategy or is being used to mask other behaviour. It would then backfire. Yeoman continues: “For social media and sustainability to really combine and drive change in companies, the two business philosophies need to be applied throughout the organisation - think of it as sustainable social business, or Social Inc. for want of a better term.” Taking CSR social: The do’s and don’ts of communicating CSR via social channels Do identify where your stakeholders are and listen to what interests them. Do update your chosen platforms on a regular basis with new – and compelling – content. Do enable marketing and CSR teams to work together. Do think of clever or creative angles for news and stories that promote human interaction. Do encourage interactivity on corporate blogs wherever possible. Don’t be afraid of showing a human face. Don’t leave all your sustainability communication via social media to one person. Don’t rush in before you’re sure of your overall business strategy and how social platforms can help you to communicate it. Source: Lucy Fisher, ‘Social Media: CSR and social media – new bedfellows?’ B2B Marketing Magazine By Vicky Gashe MCIPR Vicky Gashe is Head of Media at Business in the Community (BITC) a charity that stands for responsible business. BITC is a unique business movement – the largest business-led charity of its kind – committed to building resilient communities, diverse workplaces and a more sustainable future. BITC works locally, nationally and internationally with members to transform businesses and transform communities. BITC believes that responsible leadership is the ability to balance doing both. BITC has five campaign areas that impact on the workplace, marketplace and community on which it asks members to work with it. It offers a range of services that challenge, support and inspire members and help transform their businesses. In short, Business in the Community (BITC) is focused on initiating a shift in public perception to view business as a force for good.

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