New Business Landscape
News circles the globe in minutes, public scrutiny of corporate activity has never been more intense, and the burdens of regulation grow heavier. Research shows that consumers and media want to know how products are made and at what social and environmental cost.
To thrive in this new environment, business is redefining its responsibility as corporate citizens. Corporate Social Responsibility has emerged as a strategic business discipline that aims to align the values of employees, consumers, shareholders and other stakeholders - and harness them to drive results and build a more durable reputation. In today's highly competitive economy the importance of ensuring 'positive impact' can be crucial to both corporate reputation and business success.
CSR and community involvement initiatives are increasingly having significant positive impact for many companies. Aside from generating considerable public goodwill, evidence shows that CSR can also assist companies to build links with policy makers, aid innovation, involve, motivate and retain employees, build corporate reputation and enhance competitiveness.
Many companies are now developing sustainable and mutually beneficial partnerships with community and volunteer organisations working in a variety of fields - including education, regeneration, employment, health, employment and homelessness.
In short, CSR is now seen as an essential element in good business practice.
Corporate Responsibility, Marketing and
Public Relations
CSR should be an intrinsic part of modern brand management, which means marketing and CSR departments need to work closely together.
The creation of government regulation requiring companies to outline their CSR activities in their end-of-year financials has widened the communication divide between CSR departments and marketing, with many CSR departments becoming aligned with the finance division, and in some cases directly with the board, rather than marketers.
The problem is that marketers often get very excited about products and attributes that, essentially, are quite dull. They do not see the fresh angles that embracing a CSR message can provide. What they should be doing is telling the brand's story, or the journey of the product. Increasingly, it's what the consumer wants to hear.
Eighty per cent of FTSE 100 companies now employ specialist CSR directors and issue annual CSR reports, and its importance as a business function threatens to rival, or even surpass marketing.
CSR is not limited to the creation of ethical products. Public demand now requires companies to show they are putting something back into the community by providing support for ethically led activities, and brands that don't tap into the trend are missing out. One thing is clear: if you introduce ethics or environment into a brand it is likely to sell a lot better than if you don't. Multi-nationals are queuing up to buy the brands that are doing this well, such as Cadbury with Green & Black.
Some brands are successfully integrating CSR; many more are failing to seize its full potential. With today's savvy and cynical consumer and a very crowded media landscape, brand communication must be an expression of authentic values and beliefs - words and actions must be aligned.
The timescales and returns on investment in CSR and reputation have a longer profile than in marketing. CSR should not be a question of budgets; it should involve a long-term view of the future of the brand, and its ultimate success.
So crucial has CSR become to business strategy - not only ethically, but also in terms of delivering profitability - that many argue there is no longer a case for keeping CSR and marketing separate. If we accept that customers are driving the business agenda, CSR needs to be aligned with the core purpose and strategy of the company. If CSR is aligned to strategy, it is aligned to marketing. There shouldn't be any conflict between the departments - in fact they should not be in different departments at all.
