A recent survey from McKinsey & Co. found that 90 percent of companies say they are increasing their corporate social responsibility from what they were 5 years ago. Environmental, social and governance issues are now being incorporated into key business strategies and employees and shareholders are playing a major role in this shift.
John L. Paluszek, senior counsel at Ketchum and a former trustee for the Institute for Public Relation’s predecessor organization, recently spoke with the Wall Street Journal Online regarding the increasing trend toward corporate social responsibility.
Citing GE and Toyota’s fuel-efficient vehicles as examples, Paluszek says companies are looking at using corporate social responsibility as a new marketing opportunity. Companies are also building their reputation by using causal marketing and offering donations to an organization once a product is purchased.
While beneficial, CSR practices are not without their challenges. In an economic downturn, Paluszek lists layoffs, reduction of benefits and outsourcing as issues that might lead to criticisms of a company’s CSR program. In the face of such challenges, managers must be aware of the company’s long-term reputation and open to dialogue and input from investors, the public and employees.
Companies should start considering investments that are socially responsible as simply smart business. The CSR investment should be “authentic in the sense of relating to what kind of organization” it is and should relate to the organization’s core competencies.
Paluszek offers three rules when implementing CSR practices:
- Do well at what you’re supposed to do
- Do no social harm or injury and improve the interface between society and business
- Do a little extra – be sure to monitor issues and be aware of the intangibles that can affect your company
To read the original interview, click How More Companies Are Embracing Social Responsibility as Good Business.
Jenn Moyer
Institute for Public Relations
