Leaders in the corporate social responsibility (CSR) field have a real language problem.
Today’s best companies have CSR departments that are lead by bright, energetic, committed social pioneers – people who believe in their work, who see the social good their programs produce, and who know that their efforts bring value back to the business. However, when called to share their success with management and investors, these same people struggle to penetrate the C-suite ennui that dilutes their triumphant tales of schools built, lives enhanced, and wetlands preserved.
When told well, a story of corporate social or environmental excellence is an effective way to connect with consumers: we are proud to buy Fair Trade Coffee from Starbucks, we feel good when we put on a new pair of Levi’s ECO Jeans, and we secretly consider Ben & Jerry’s a health food due to the company’s tradition of environmental and social justice.
These stories testify to the strength of a company’s CSR program, but say very little about its success as a business unit. And ultimately, that’s what CEOs and investors need to know. When CSR departments engage the business without mastering the language of business, they miss an opportunity to demonstrate their value to their most important audience.
-Claire Moroni
May 6, 2008 at 3:30 pm
I couldn’t agree more that CR people need to communicate in the language of business. In that respect, it’s no different to the challenge that has faced HR professionals for years (and it’s why I recently undertook an MBA).
However, part of the problem is also implicit in the examples you give – of schools built and wetlands preserved. It will always be difficult to engage business leaders (and other stakeholders for that matter) unless CR initiatives are demonstrably relevant and material to the business’ operations.
This is one of 5 golden rules I’ve identified for developing CR as a source of brand and competitive advantage – see http://www.sasdesign.co.uk/knowledge/article.php?knowID=23
July 15, 2008 at 5:20 pm
You hit the nail on the head- it is pivotal that social strategy aligns with business strategy. When a company chooses to address a social issue that is relevant to a company’s activities and competitiveness, the company’s CSR will add value to both the firm and society. Strategic CSR will also survive during an economic downturn because of this added value.
Patagonia and REI have done an impressive job integrating their CSR into their business:
http://www.managesmarter.com/msg/content_display/incentive/e3i5ec77cd24943021357876aa2d974a977
-Aneesa Arshad