Geoff Moore on the benefits of CSR to business
3 min read
Corporate Social Responsibility (CSR) has been around for a long time. You may have already developed a CSR strategy or have some CSR initiatives in your organisation. But have you thought about this from a strategic perspective? In other words, how does your organisation’s CSR strategy or initiatives link to your commercial strategy?
Responsible business and stakeholders
Many small businesses don’t like the term CSR. The ‘Corporate’ smacks of big business and the ‘Social’ seems vague, and makes no mention of the ecological environment – which nowadays has to be fundamental to any strategy in this area. So, if ‘Responsible Business’ chimes better with your organisation, think of it in those terms and simply drop CSR.
And then think of it with regards to your stakeholders, which helps to get rid of any vagueness in the concept. So, the questions become, who are the key stakeholders for my business, and what does being responsible to each of them amount to?
Usually, the key stakeholders include customers / clients, employees, suppliers, the local community, and the ecological environment. That’s not forgetting investors / owners, and it obviously helps if they are on board with this agenda. But if the strategy and practice around responsible business also has commercial benefits, then why wouldn’t they be?
Responsible business and business benefits
Sometimes, being responsible can look simply like a cost to the business. If you are not paying all your employees at least the Living Wage (and ensuring your suppliers are paying their employees likewise), then it would be an immediate cost, both in terms of raising the wages of those below that level, and in preserving differentials, to do so.
But you also have to ask what the benefits of doing this might be. And there is evidence that not only in this area of employee wages, but more generally with other stakeholders, there are benefits. Being responsible towards employees can lead to attracting better prospective employees, improve employees’ engagement, commitment and in-role performance, and lead to better employee retention. Could you quantify at least some of those benefits, and see if there is a ‘return’ on an ‘investment’ in this area?
Responsible business has also been found to have benefits in terms of operational efficiencies and product quality. It can lead to greater customer loyalty and better evaluation by customers of your products. There is also usually some ‘low-hanging fruit’ in relation to the greening of business – saving energy saves money, for example. And all of this can add up to an enhanced reputation and attractiveness to investors.
Philanthropy is also a common part of a responsible business strategy, and can be a key way of enhancing community relations. But again, this can be linked strategically to the core of the business. Boots’ support for Macmillan Cancer, for example, makes an obvious link between Boots as a pharmacy-led health and wellbeing enterprise and a charity that is working towards the same ends.
So, if you haven’t already, why wouldn’t you put together a responsible business strategy?
By Geoff Moore
About the author
Geoff Moore is Professor of Business Ethics at Durham University Business School. He teaches in areas such as corporate social responsibility, sustainability and business ethics and was also a founding member of the UK Association of European Business Ethics Network (EBEN-UK). https://www.dur.ac.uk/business/about/our-people/search-results/?id=2114&target=127937
