Knowledge Resource Centre

How CR Can Change Your Business

Melissa Davis

The business case

For businesses, however, the 'case' for introducing and maintaining CR is often constantly reviewed. Companies - particularly smaller sized ones - sometimes view CR as an additional extra and "nice to have" and something that takes a back seat when companies are preparing for tough times. Yet CR can be hugely beneficial to companies, both inside and outside of the business:

• CR reflects the new business environment: Business must respond to social change to adapt to a changing global context. Environmental and social concerns are becoming a part of this. Slow movers may be left behind or viewed as out-of-touch within a changing global society.
• It can improve efficiencies: CR practices can benefit business by introducing more efficient processes (particularly in the environmental context) as well as reasons for innovation.
• CR can be used to express 'brand values': A company needs to express what it 'stands for' through action, not just words. CR initiatives help demonstrate the 'values' of a company, such as engaging in a key partnership with a charity. This is likely to inspire and unite your employees. For example, mail and express company TNT, successfully boosted its reputation among its global employees, as well as awareness of its CR activities, when it set up an ongoing partnership with the World Food Programme (WFP) in 2002.
• CR is part of the ‘pitch’ process: Businesses are increasingly being asked to demonstrate CR competencies when working with large corporations (as players in the corporation’s supply chain).  CR policy needs to be turned into action.
• It is a legal requirement:  The UK Companies Act 2006 now requires that listed businesses report on both their environmental and social contributions. While full CR reporting is still not yet a legal requirement, it has become ‘best practice’ within many sectors as the leading companies now report.
• CR helps manage your reputation: Some companies respond to social issues to safeguard their reputation (and possibly avoid future litigation). Yet companies can also boost their reputation by having visible, responsible policies. For example, the Marks & Spencer ‘Plan A’ initiative, outlining its social and environmental policies, has helped increase awareness and trust in its brand.

Steps to implementation

While is may seem that every major company now has a degree of corporate responsibility in place, instigating action and behaviour change among employees is still the greatest challenge for many companies.  Introducing a CR policy is the easy part – actively making sure that it is implemented requires ongoing commitment and leadership.  Some key factors to success are: 

• Leadership: While executive level buy-in is a must, it is also key to appoint CR leaders throughout the business if CR is to be effectively implemented.  CR is a board level issue – and should be represented at the Board – but action needs to happen among employees.
• Internal communication: Ongoing internal communication and involvement from employees is key to effective CR implementation.  There is plenty of scope for creative ideas. Appoint ‘storytellers’ as the communicators in the business who can make things happen and demonstrate good practice.
• Create follow-through and a feedback loop: Many companies have KPIs (Key Performance Indicators) to assess where they perform well and what needs improvement. Used effectively, KPIs can help companies become leaders through ongoing review and improvement and can be included in the reporting process. Documenting ‘volunteer hours’ among employees can also be key to the measurement process.
• Look to best practice: Don’t seek inspiration from your own sector only.  Ideas can be gathered from other sectors and companies (large or small) in other industries.  Use them for inspiration, but also make sure you comply to best practice within your own sector.

If you’re taking some first steps in CR, your own employees are the best starting point.  Get them to participate in developing CR initiatives and ask for their ideas and feedback.  CR can be a means of motivating and engaging employees in the business which will, in turn, make them proud to work for your company and boost productivity as well as the employee brand.  If all goes well, it’s your employees that will talk positively about your company – and they, along with your customers, are the best communicators of your brand.

References

(1) A brand is valued at around one third of a company’s equity according to Interbrand.