Understanding the Simple Facts of Implementing Good CSR Practices
Returning to my home country six years ago, I must say there is still so much work to do in terms of getting as many companies to commit to doing good with its business practices. Even in flagship events around the globe like the International CSR Summit, I rarely see speakers, moderators, and best practitioners coming from the Philippines. While I know a few are already doing the practice and some are in the inception stage, yet slower pace, I cannot heed the fact that I am truly missing my CSR job --- A LOT. I always feel that urge to step out of my sanctuary, widely open my mouth and heart, and speak about CSR for 24/7.
In the recent years, many individuals, initiative groups, and companies seemed to have different interpretations about corporate social responsibility. As a result, each has implemented methods according to its own mandate. Not that those methods aren’t good or accurate. In fact, any CSR practice is effective as long as it is GOOD. We only want to avoid using the term CSR just for advertising and branding even if in reality, there is completely lack of practice. It is important that your business activities are aligned with the CSR programs you developed.
What really is corporate social responsibility (CSR) in its most logical terms? Our impression of it need not be complicated as it can usually lead to an excuse for non-compliance or taking it for granted. CSR goes beyond philanthropic missions. There has to be a commitment to get involved physically, mentally, spiritually, and emotionally.
One should see CSR as simply having the effort to persist to exhibit ethical practices in every aspect and little detail of a business. Because eventually, the good that we do comes back to us a thousand-fold. This is why a socially and environmentally-responsible business is a sustainable business operating and earning beyond profits.
Skye Schooley gave a simplified and rightful definition of CSR in her recent article published on Business News Daily. She said, “CSR is an evolving business practice that incorporates sustainable development into a company's business model. It has a positive impact on social, economic and environmental factors.”
In the real sense, businesses have the power to enforce a genuine positive change because it has direct access to the immensity of resources. This is why CSR is so essential because there has to be measures in the way such power is enforced. But given the gratification of bettering the planet, what is really in store for businesses? The answer lies greatly to the positive impact of building a credible reputation.
Trust is the most essential outcome and benefit of having a functional CSR program. For example, if your business operates in an environmentally and socially conscious way, customers are more likely to think and feel that your business is also doing exactly the same good things in all the other facets of your business. Ultimately, this kind of impression breeds trust!
There are two types of consumers – the wise and the carefree. The present economic condition has resulted to the rise of more wise consumers outnumbering the carefree ones. Therefore, it is helpful to bear in mind that before this majority of consumers purchase your product, they would want to find out more about how was the product made and the impact it has created.
Do you think consumers feel fulfilled or directly responsible for the products they purchase? Yes. For the wise consumers, becoming aware of the direct source and outcome of the product they purchased greatly affects their feelings. In fact, 55% of consumers are willing to pay more for products from socially responsible companies.
The best kind of branding that any business can achieve is by Championing CSR. It means that it outperforms beyond the standard expectations based on the environmental, economic and social points of view, and it is able to keep it that way.
Once you’ve got the right mindset about CSR, it’s time to work on the functional strategies to implement the good practices. You see, feasible strategies can greatly improve consumer confidence, business referrals, and brand patronage. Keep in mind that there’s always a bonus – it leads to increase in revenue generation for your business. Therefore, CSR is very crucial for your company's reputation as it is for the environment, society, and the whole planet eventually.
The tip is to make CSR the core of your business and not just a stand-alone program. Do you know that it could also be a very effective tool to manage reputation? Yes, it is. This piece will tell you why investing in CSR is best for your business.
Making reference to ISO26000 is a smart move for your business if you are contemplating on embracing CSR. The ISO26000 is not the typical standards for certification. Rather, it provides a comprehensive guidance on social responsibility and sustainable development. It will shape your business as to how it can operate in a socially responsible manner and act in an ethical and transparent way. In this way, you are contributing to the welfare of the society, economy, and environment around you. Keep in mind that subscribing to this initiative defines the destiny of your business.
Environment is the primary focus of CSR. In your business operations, are you mindful of reducing any damaging effects to the environment? It is ideal to focus and be conscious of the following practices that are also significant from a financial point of view:
- Managing waste
- Conserving electricity and water use
- Producing products that can be recycled and optimizing its life cycle
- Outsourcing from suppliers who use recycled or sustainable materials
- Controlling emissions
- Designing an eco-friendly office
- Creating business travel policies that covers carbon offsetting including creation of an efficient distribution network
- Purchasing from local sources to save fuel costs
- Working with environmentally-conscious distributors
Do you agree that employee turnover can be very expensive? Fulfilling responsibility to your employees directly affects your brand in a positive way. It is indispensable to remember and comply with the following employee expectations that are consistent with the ethics in employee relationships:
- Employees deserve a commensurate and competitive pay for the hard work and loyalty they pour out to the company.
- Create brands that improve the well-being of employees and provide access to safe working conditions.
- Map out a stable tenure of employment, if possible, or at least provide reasonable benefits.
- Provide regular professional development and career pathways by requiring employees to take up training courses and workshops.
- Promote cultural diversity.
- Implement and publish transparency reporting.
- Encourage an effective and open line of communication.
Relatively, developing fair trade partnerships can also realize big returns because you have a contented and productive workforce. Picture this --- the happier your employees are, the lower your turnover rate becomes.
The Center for Economic Studies, in its recent surveys, found out that when employees feel they are working towards a good cause, it increases productivity by up to 30%. These efforts can also increase the rate of employee engagement as a result of being able to experience a sense of fulfillment and purpose in one’s job.
Did you know that corruption is a major social concern that compromises the image of a business and its ability to compete in emerging markets? This is why engaging in anti-corruption strategies is an exceptional leverage to improve competitiveness. It is also a rational avenue for limiting the utilization of resources so that there is fair appropriation for the disadvantaged populations and prevents authorities from corruption or from the temptation of it.
In order for a business to ensure compliance in all its divisions and offices in other countries (if any), how do you think businesses can play a notable leadership role to improve results in the wider anti-corruption efforts? You can follow these proven methods:
- Make corruption as your strategic CSR issue and take practical solutions to social problems that you find critical to the business.
- Shift from long-winding and scattered agreements to outcome-based contracts that will develop real incentives for performance transformation.
- Broaden your efforts to influence anti-corruption in the public sector.
- Capitalize, incorporate, and align your resources and employees to better execute your anti-corruption strategies.
So what makes anti-corruption policies ethical for business thinkers and CSR professionals? If your business has a sturdy internal compliance program in place that is integral to your corporate social responsibility, you would be able to identify and mitigate bribes and corrupt payments. Not only does it guarantee compliance with the law, but it also maintains market competitiveness. At the same time, the benefits the society gets from the activities you operate manifest easily.
Do you know that volunteering must also be pivotal to any of your CSR programs? Yes, because it can enhance your corporate culture in various ways. Volunteerism strengthens your business. In fact, the gravity of feeling good through volunteering is even deeper.
By embracing volunteerism, it depicts the image of what your business upholds. What are the benefits of integrating volunteerism in your business? It attracts employee engagement and team building; it enhances employee retention; and builds up your branding. Well if you haven’t realized it yet, volunteerism serves the end result of your business as it does to your community.
Try to come up with feasible volunteering programs for your employees and encourage them to participate actively and meaningfully. Doing this can be mutually beneficial as it promotes employee reputation and motivation; improves weak skills and competencies; and reinforces trust and empathy.
The GLOBAL COMPACT NETWORK SINGAPORE has an extensive membership base of CSR champion companies. It has always kept its momentum in getting many companies and professionals actively involved in business sustainability and accountability. I encourage every business to learn best practices from these Singapore companies and find out how it has transitioned from the ordinary to becoming CSR champions.
How can you reach many positive reviews out of your many good practices? You must market your efforts and communicate your CSR programs effectively to the public. Promoting it extensively will inspire many publishers and patrons to write positive articles about your business. They can even go out of their way to help build a solid online reputation for your brand.
Ultimately, CSR significantly brings effectiveness in your corporate strategy. Be it to safeguard your brand or recuperate from the recent challenges, you’ll be able to bounce back instantly when people are posting positive comments about your business.
There are still a lot of people with high regards for social responsibility and environmental sustainability. Customers love to patronize brands that champion good practices. It also helps to embrace green CSR as a tactical means to reduce business risks and provide opportunities for cost savings. Do you know that even the simplest energy efficiency measures can generate revenue too? It certainly can.
So, never hesitate to highlight the CSR efforts of your business. You should consider it more as something worthy of doing to produce an outstanding ripple effect.