Corporate Social Responsibility is Crucial These Days

What do Walmart, Shell, FedEx and General Mills all have in common? They all have recently released annual Corporate Social Responsibility (CSR) reports, describing the many ways in which their organizations are working to better the world in which we live. It’s quite a sea change from a few decades ago when big business saw steady growth, rising profits and a climbing stock price as pretty much their only responsibilities to shareholders. For years, the only social contract many companies felt obligated to fulfill was job creation.

Not so in 2017. Now, it’s about ‘doing well by doing good.’

From green buildings to gender equality to community philanthropy, organizations of all types are putting huge resources behind their CSR efforts. A 2014 report by the consulting firm EPG found Fortune 500 companies in the U.S. and U.K. were spending more than $15bn a year on CSR work. New teams are wholly devoted to managing Corporate Responsibility plans and communications. Why? The easy answer is because it’s considered ‘the right thing to do.’ But the reality is that a rich, robust and highly visible CSR program is becoming a necessity to win over clients, employees, and just about every other stakeholder in their organization.

Who cares?

Surveys show the growing importance of Corporate Social Responsibility both for external and internal audiences. On the external side, it’s become a critical component of sales and marketing efforts. Clients and prospects want to ensure they’re partnering with a company that takes its larger role in the world seriously. CSR also is touted by investor relations teams intent on demonstrating to shareholders a commitment to social finance goals, environmental sustainability, or employee issues such as diversity and inclusion. In some cases, the traditional company annual report is taking a backseat to CSR glossies, at least in terms of production value and how widely they’re being shared.

Internally, organizations are using Corporate Responsibility to amp up employee engagement, recruiting and retention efforts. Community volunteering, matching grants for charitable donations, and an array of employee affinity groups create a bond between worker and employer that transcends the workplace. They foster a set of shared values that’s increasingly important to employees of any age, but especially to millennials. And that translates into worker loyalty and reduced turnover. HR teams are leveraging CSR activity to woo new-hires, knowing they can attract more engaged employees. One study cited by the Columbia Business School even found that workers settle for lower wages at firms with a strong commitment to CSR. Talk about a win-win.

Shine a light

Of course, you can have the most well-intentioned Corporate Social Responsibility program, but it’ll never reach its full potential if nobody’s heard of it. CSRWire Report notes, “[R]ecent studies suggest that it is critical for companies to not only develop CSR initiatives but to effectively communicate them as well. The days of not communicating CSR developments are numbered because the marketplace is steadily demanding greater transparency.”

To quote ‘80s pop band Tears For Fears, ‘Shout, shout! Let it all out!’ That's good advice for communicators when planning their Corporate Responsibility outreach. Every day, employees have to sift through loads of information, and social initiatives are a great opportunity to use a variety of media and platforms to motivate them. Broadcast emails and intranet content can be supplemented with video of volunteers cleaning up a park in Chicago, animation of solar panels being installed in Cambridge, or the CEO explaining a new peer mentoring program in India. Social media outlets offer the chance both to reinforce what you’ve told employees as well as to spread the word among outside influencers via Twitter, LinkedIn, YouTube and the rest.

It’s all good

Whatever your business, to thrive nowadays means a commitment to social responsibility is almost a given. Improving the greater good is laudable in itself. We all benefit from cleaner air, healthier communities, and more equal paths to success. But don't underestimate the value of communicating your Corporate Social Responsibility efforts frequently and creatively to reach all your audiences. You want to set your enterprise apart and leave a lasting impression.

After all, it’s the right thing to do.