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Donna Ramsammy - Is it CSR or PR - CSR2021 Editorial
Is it CSR or PR?
In this issue, we examine how business is investing in human capital as an imperative of good corporate governance. The introduction of the ESGs and the drive for policy changes to generate more meaningful action towards the Sustainable Development Goals, is causing more companies to open up to the notion of purpose and responsible governance. There is a shared accountability by business, governments, and civil society in addressing pressing social and economic issues.
Interrogating this interdependency is a helpful way for businesses to find their purpose and how they might focus their CSR spend. But it is not just about the spending or the giving; it is also about communicating the impact – the positive difference a company is making towards a better society, a better world. To reap the returns of strategic CSR – i.e. likeability, trust and loyalty, a company has to first do good, and to do so in ways that are making a tangible or measurable difference.
Here’s the challenge for business. How do they communicate CSR without it sounding self-serving or like simple PR hype? There is a simple answer – make CSR an integrated part of the business strategy and business plan outcomes. The PR role is to communicate social performance as part of the overall business performance. CSR should underpin a company’s values; and how those values are being lived, needs to be communicated. Unlike traditional PR which aims to put a positive light on issues, strategic CSR takes risks - sometimes addressing controversial issues, or by speaking up in the interest of the greater good, or by sacrificing profits to do business ethically.
The cancel culture is turning up the volume on consumer voices. Today, consumers are canvassing issues that corporations have not had to deal with previously and there is a growing preference to support organisations and brands with credible DNA in social responsibility. Perhaps it is a result of the broken trust generated by the financial crisis, or climate change, or the Black Lives Matter and Me-Too movements; but the rise of social movements is certainly contributing to this shift. The result is that increasingly, more businesses are treating with social investment as an integral part of the business strategy and are creating legacy brands that are attractive to a new age of investors.
In August 2019, the US Business Roundtable amended their Principles of Corporate Governance to address corporate responsibility to the social good. In a summary Statement on the Purpose of a Corporation which was signed by 181 CEOs, they agreed to deliver value to all stakeholders “for the future success of our companies, our communities and our country.” This was underpinned by these five action-driven commitments which I have summarised as follows:
• delivering value to customers - leading the way in meeting or exceeding customer expectations.
• investing in employees - fair compensation and benefits, training, and education and by fostering diversity and inclusion, dignity, and respect.
• dealing fairly and ethically with suppliers - good partners to other companies, large and small, that help us meet our missions.
• Supporting the communities - respecting the people in our communities, protecting the environment, embracing sustainable practices.
• Generating long-term value for shareholders - grow and innovate; commit to transparency and effectively engage with shareholders.
Strategic CSR provides a powerful and differentiating factor for businesses that goes beyond profits. It builds enduring brands and deep customer loyalty. Consumers want to see companies that do good, succeed. Importantly, the good that a company does, has to be seen and understood - and for that to happen, the story has to be told. Done well, the story shares the values of a company, its commitment to ethical business practices and the progress it is making in those commitments.
