You run a company.
You take a responsible stance and go beyond the minimal legal requirements.
You deal with people (suppliers, customers, the community etc) and the environment in a responsible way.
You let the community know you are doing this.
People like buying things of companies that are 'nice'.
You make more money
Making up for, and even surpassing, the losses made for changing your ways in the first place.
The benefits of CSR.
Thursday, 22 January 2009
Starbucks, a case study.
In there words:
Contributing positively to our communities and environment is so important to Starbucks that it’s one of the six guiding principles of our mission statement. We work together on a daily basis with partners (employees), suppliers, farmers and others to help create a more sustainable approach to high-quality coffee production, to help build stronger local communities, to minimize our environmental footprint, to create a great workplace, to promote diversity and to be responsive to our customers’ health and wellness needs.
They even have an environmental mission statement:
The 'Workers independent news' says: Starbucks is considered a leader in socially responsible business practices: an early adopter of health care for domestic partners, pioneered benefits for part-timers, has a very multi-racial workforce including up to top officials, emphasizes training, often promotes from within.
Its VERY difficult to say weather or not Starbucks does these things because its good for business or because they feel like they 'should' or whatever. But then, is that important? As long are they are doing it should we criticize their agenda? I think thats an interesting argument. My gut says don't look a gift horse in the mouth, but my brain dosnt like the patronizing way they wallow in there 'goodness'.
A Personal experience of CSR.
In my time in India working for an Ad agency we got to spend a lot of time with the boss, we discovered he considered it his RESPONSIBILITY to give something back. There are no rules and regs saying you have to out there, but he felt India was part of him and a need to try and fix some of the massive problems it had. Running an ad agency is borderline 'ethical' at the best of times, but he felt you could of set the shallow perpetuation of consumerism he was partially responsible for with something truly good. Its been proven that smart advertising can really do good, look at the tap project. I find this was of thinking interesting and appealing, that you can sooth your heart and soul by trying to help people with the tools you have, i.e. 'creativity'. On a personal level i sometimes worry i will kind of wake up when i'm 35 and think "what am i doing selling bank accounts or pot noodles".
In advertising, how can we be more socially responsible. There should be more tap projects out there. If you were to pool the thinking power of all the advertising agencies in the UK for one week, how much 'good' could be done?
Tuesday, 20 January 2009
Book: Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause
This book literally outlines the ways in witch companies take part in CSR.
It outlines the 6 main ways in the body of text above.
BOOK: Citizen Brands: Putting Society at the Heart of Your Business
This book makes the point that being a 'good' citizen (company) actually acts as a great foundation for success, it seems you can have your cake (be a CSR company) and eat it (make loadsa cash).
What's in it for the companies.
The thing is, (most) companies are out to make as much profit as possible for its shareholders, that dosnt make them evil. The world as we know it was built on capitalism and nothing is going to stop that. BUT, CSR must be mutually beneficial to the company and society for it to have a future, so what positives do companies experience from CSR?
improved financial performance
reduced risk exposure
identification of new products and new markets
enhanced brand image
increased sales and customer loyalty
improved recruitment and retention performance
creation of new business networks
increased staff motivation and enhanced skill set
improved trust
enhanced corporate reputations
improved government relations
reduced regulatory intervention
reduced costs through environmental best practice leading to more sustainable profitability
So i get the gist of it, but what can they ACTUALLY do?
Examples of action companies take in the name of CSR:
articulating a relevant organisational philosophy and incorporating it into mission, vision and values statements
drafting a meaningful code of ethics that is consistently applied
revising employment relations strategies
social and environmental reporting and audits
strategic philanthropy
undertaking pro bono work
employee volunteering
public education programs
mentoring programs
corporate community partnering
cause-related marketing
community forums
Examples to follow.
So what does it mean?
Wikipedia says: "Corporate social responsibility is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large."
Basically, its companies supposedly giving back to both the individuals around them and society at large. A lot of businesses are thought to be these large evil organizations that shrewdly take advantage of 'us little people' to make a buck, weather or not this is the case for giving something back or not it seems companies like to be seen to 'do good', they take the time to make these things as public as possible. Probably to offset some of the 'harm' they are thought to have done, and make you feel a bit better the next time you buy a coffee or whatever, if you know they have planted a tree.
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