• Rising sea levels as the polar ice caps melt
• A fall in the numbers of fish, wild animals and birds
• Global food supplies reduced
• 290 million people could be exposed to the risk of malaria
Over the past few years, corporate social responsibility has become one of the most pressing issues facing employers. Climate change, also known as global warming, threatens not only commerce but almost everything that we hold dear. It is no exaggeration to say that, in many cases, it will jeopardise not only livelihoods but lives.
WHAT IS CORPORATE SOCIAL RESONSIBILITY (CSR)?
CSR covers all aspects of corporate governance. It is about how companies conduct their business in an ethical way, taking account of their impact economically, socially, environmentally and in terms of human rights. This moves beyond traditional stakeholders such as shareholders and local suppliers but also includes social partners such as local communities, and global responsibilities such as protecting the environment and ensuring good labour standards in overseas suppliers. CSR also includes relationships with employees and customers. It inevitably involves working in partnership with other organisations or groups. It can be seen as a form of strategic management, encouraging the organisation to scan the horizon and think laterally about how its relationships will contribute long-term to its bottom line in a constantly changing world.
Employer branding in respect of corporate social responsibility is involved with enhancing the reputation of the organisation. Recent research has shown that staff turnover falls and it becomes easier to hire new people when employers adopt a green approach, whilst graduates and professionals increasingly examine the CSR credentials when job-hunting. In order to attract and retain the very best young people, proactive approaches are now being undertaken especially with schools, colleges, universities and community groups.
Websites are being re-designed to highlight the environmentally-friendly activities that responsible employers are undertaking, whilst a small but increasing number of organisations insist on scrutinising a business’s policies and procedures relating to the environment before they are allowed to bid for certain contracts. Forward-thinking organisations are recognising that levels of employee engagement can be increased by adopting an innovative approach to the environment and publicising the positive impact, and where skills shortages exist CSR can be the difference in filling a tricky vacancy or not. Employees now expect their employer to adopt a like-minded approach to the environment and sustainability, and typically Generation Y employees take a greater interest in this area than other groups.
DRAWING UP A CSR STRATEGY:
• Clarify your core beliefs and values
• Make sure you know who your key internal and external stakeholders are and which issues affect your relationship with them.
• Get the top team on board, and know how to sell the benefits of CSR to different stakeholders.
• Understand how the CSR strategy is aligned to your business strategy and HR practices.
• Get endorsement for the CSR strategy from inside and outside your organisation.
• Communicate consistently.
• Training is vital, as CSR will only have an impact if employees are engaged: attitudes or behaviour won’t change otherwise.
• Effectively measure and evaluate CSR, otherwise the time, effort and money invested are based on assumptions, not results.
Having a corporate conscience is likely to become more of a draw card in the future, with more and more jobseekers stating that CSR will become an even more important issue over the next five years. A recent development has been the creation of a CSR competency framework along the lines of:
• Understanding society – understanding the role of each player in society, including government, business, trade unions, non-governmental organisations and civil society.
• Building capacity – external partnerships and creating strategic networks and alliances.
• Questioning ‘business as usual’ - openness to new ideas, challenging others to adopt new ways of thinking and questioning ‘business as usual’ attitudes.
• Stakeholder relations – identifying stakeholders, building relations externally and internally, engaging in consultation and balancing demands.
• Strategic view – taking a strategic view of the business environment.
• Harnessing diversity – respecting diversity and adjusting the approach to different situations.
More and more leaders of businesses and other organisations are now waking up to the reality of corporate social responsibility, as public opinion (largely as a result of the internet) re-shapes expectations and standards. Both good and bad organisational behaviour is more transparent than ever on a global basis.
Injustice anywhere in the world is becoming more and more visible, and less and less acceptable. Reaction to corporate recklessness, exploitation, dishonesty and negligence it is becoming more and more organised and potent. Employers, businesses and organisations of all sorts - especially the big high profile ones - are now recognising that there are solid effects and outcomes driving organisational change. There are now real incentives for doing the right thing, and real disincentives for doing the wrong things.
As never before, there are huge organisational advantages from behaving in a socially responsible way, with humanity, compassion, and with proper consideration for the world beyond the boardroom and the shareholders:
competitive advantage - customers are increasingly favouring providers and suppliers who demonstrate genuine socially responsible practices. Failure to do so means lost market share, and shrinking popularity, which reduces revenues, profits, or whatever other results the organisation seeks to achieve.
better staff attraction and retention - the best staff want to work for socially responsible employers. Failing to be a good employer means good staff leave, and reduces the likelihood of attracting good new-starters. This pushes up costs and undermines performance and efficiency. Aside from this, good organisations simply can't function without good people.
investment - few and fewer investors want to invest in organisations which do not “walk the walk”, because they don't want the association, and because they know that for all the other reasons here, performance will eventually decline, and who wants to invest in a lost cause?
morale and culture - staff who work in a high-integrity, socially responsible, globally considerate organisation are far less prone to stress, attrition and dissatisfaction. Therefore they are happier and more productive. Happy productive people are a common feature in highly successful organisations. Stressed unhappy staff are less productive, take more time off, need more managing, and also take no interest in sorting out the organisation's failings when the whole thing implodes.
reputation - it takes years, decades, to build organisational reputation - but only one scandal to destroy it. Socially responsible organisations are far less prone to scandals and disasters. And if one does occur, a socially responsible organisation will automatically know how to deal with it quickly and openly and honestly. People tend to forgive organisations who are genuinely trying to do the right thing. People do not forgive, and are actually deeply insulted by, organisations who fail and then fail again by not addressing the problem and the root cause. Arrogant leaders share this weird delusion that no-one can see what they're up to. Years ago maybe they could hide, but now there's absolutely no hiding place.
legal and regulatory reasons - soon there'll be no choice anyway - all organisations will have to comply with proper socially responsible standards. And these standards and compliance mechanisms will be global. Welcome to the age of transparency and accountability. So it makes sense to change before you are forced to.
legacy - even the most deluded leaders will admit in the cold light of day that they'd prefer to be remembered for doing something good, rather than making a pile of money or building a great big empire. It's human nature to be good. Humankind would not have survived were this not so. The greedy and the deluded have traditionally been able to persist with irresponsible behaviour because there's been nothing much stopping them, or reminding them that maybe there is another way. But no longer. Part of the re-shaping of attitudes and expectations is that making a pile of money, and building a great big empire, are becoming stigmatised. What's so great about leaving behind a pile of money or a great big empire if it's been at the cost of others' well-being, or the health of the planet? The socially responsibility zeitgeist is fundamentally changing the view of what a lifetime legacy should be and can be. And this will change the deeper aspirations of leaders, present and future, who can now see more clearly what a real legacy is.
WHAT CAN BE DONE?
Recycling - paper (print on both sides or even better don’t print at all), toner cartridges, rainwater
Energy reduction-switching off lights and computers at night, low energy light bulbs, use of renewable sources of energy, turning down the heating and air conditioning controls
Car-sharing - working with local authorities to encourage take-up, using rental car schemes that charge by the hour, opting for hybrid vehicles when renewing the fleet
Food and drink - buying locally-produced goods, only boiling the amount of water needed, making tea rounds so the kettle is not boiled for just one person at a time
Use of public transport rather than cars - some organisations are reducing their mileage rates to disincentivise car travel
Home working - removing the need to commute to the office as frequently
Cycle to work schemes - assisting employees purchase bicycles and the necessary equipment, providing locks, cycle racks and showers (renting facilities from a local gym or sports centre if necessary)
Telephone conference calls - reducing the need for individual calls
Video conferencing - for meetings
Interviews - video CVs, web cams and video conferencing
Volunteering - painting, gardening and clearing a children’s playground
Rewards for green behaviour - awards and financial incentives, paid time off work
Measuring carbon emissions in an attempt to become carbon-neutra - air miles, taxi miles, amount of waste disposed of.