US companies embrace CSR as 'soul of the corporation'

One thing last year's BSR conference made clear is that thinking among US companies about corporate social responsibility has now moved  beyond the 'why' to the 'how' stage. The emphasis is firmly on human values rather than impersonal systems, with a growing  concern that matrices and indicators should not be used as an end unto themselves, but to help build the case for CSR.

The question being asked by the 800 odd conference delegates was not 'Why do we need CSR?' but 'How do we build supportive and sustainable business models that incorporate CSR and will produce the greatest impact for partners and communities?'

Good relationships the key to success

Participants defined successful CSR as a set of trust-based relationships where the human element can transcend institutional and structural differences. Numerous cases were cited where partners had very different motives for engaging in a project. The successful ones worked because of the trust established among partners: all were working towards an agreed vision, not a convergence of motivations. Companies are realizing that it is in their business interest not only to 'do the right thing' but to add significant value to the company by preventing problems before they happen, identifying opportunities for new products and/or for better product acceptance by their customers and employees.

Far fewer companies are apologetic about attempting to capture the business benefits of CSR than in past years. As the practice of CSR shifts away from philanthropy and more towards a business partnership model, there is a growing realization that sustainable success for a company depends on good relationships with investors (institutional and private), consumers, employees (including retirees and families), business partners (joint venture partners, franchisees, trade distributors and suppliers), governments (regulators and funding agencies) and communities (neighbourhoods, non-profits, issue groups and educational institutions).

Models are being developed to incentivize a workplace to adopt a partnership approach. Susan Scott-Parker from Employers Forum on Disability in the UK pointed out that the business case doesn't work when there are no rewards for change, when it's too hard or too costly, when staff are too busy already or when there is no inter-departmental coordination in the company.

A backlash against systematization

There is a growing backlash against the systemization of CSR. As organizations like BSR, AccountAbility and many others strive to develop matrices, indicators and scorecards to measure impacts, capture lessons and convince sceptics, the companies are talking about valuing individuals, human factors and values. Many of the corporates (most notably Ralph Larsen, CEO of Johnson & Johnson) noted their rising fear that CSR will become 'bureaucratized'. Instead of being an end unto itself, CSR should be the soul of the corporation, about people and values, not norms and standards.

Larsen made a strong case against setting up a separate CSR department, which he says would marginalize and 'deaden the essence of CSR'. All agreed the impetus for CSR had to come from the CEO or it was impossible to infiltrate the company.

There was a call in several sessions for an organization/agency to act as knowledge hub, clearinghouse, partnership broker: a global community bulletin board where donors and companies can post their available resources and strategic interests and cross-reference them with government and NGO postings of development and resource needs. Many companies said they wanted to get involved but didn't know what programmes existed out there or what expertise was available.

Amanda Blakeley is a Partnership Specialist at the World Bank Group. She can be contacted by email at Ablakeley@worldbank.org

Event Business for Social Responsibility annual conference
Date 8-10 November 2000
Venue New York
Theme Adding Value: Strengthening Corporate Social Responsibility Strategies