Wednesday, January 19, 2011

Is there such a thing as internal CSR?!

Many companies have made Corporate Social Responsibility (CSR) part of their corporate agenda, and for good reason. Corporate businesses are now expected to hold themselves accountable for issues that hardly used to feature on their radar. Usually CSR is understood to relate to three domains: environment, technology and communities. Corporate efforts are dedicated to protecting the environment, to weigh in the effects of new technology, and to care for communities, whether globally or locally. These activities constitute what is typically understood as CSR, that is a responsibility towards parties external to the company, with the understanding that they benefit the company by promoting a better image, and from the good will created locally and globally. And of course, CSR raises the level of good karma in the world! The recent focus on CSR has veered from external efforts to internal. Internal CSR addresses the need and well being of employees, as well as job seekers, by encouraging diversity, by promoting health and well being in the work place, and by providing rewarding employee benefits. Sounds like nothing new? Maybe. Certainly many policies supporting diversity and improved work conditions were instituted in the 60s and 70s. What's new about it is the combination of both external and internal CSR as a unique ethical concept. Companies are not supporting diversity simply because they are under obligation to do so by law, but as part of a general effort to be responsible. We at Tribe were recenlty honored to help KPMG celebrate winning the Catalyst award which crowns their massive push to create company-wide diversity:

KPMG - "Catalyst" - Accolade award winner from Tribe Pictures on Vimeo.

At the moment our Tribe team is also working with Hess to develop an effective employee communications strategy, which will include raising CSR awareness, both internal and external. While external CSR inspires more confidence in customers and communities, it creates a climate of pride and dignity within the company. Employees are more likely to endorse ethical values in their work if they feel the company truly embraces them. Reciprocally, while internal CSR is of direct benefit to employees and job seekers, it improves the corporation's image to the public at large.

Here are several interesting articles about the current wisdom relating to CSR:

This project is being implemented in Trinidad and Tobago where high level of absenteeism and low productivity is crippling the private sector. The goal is of implementing internal CSR initiatives to create safer and healthier work environments linked real labour productivity gains including increased employee motivation, reduced absenteeism and rate of employee turnover, and higher productivity and efficiency in production processes.
http://www.iadb.org/en/projects/project,1303.html?id=TT-M1012


The two following studies concern themselves with assessing the level of CSR in the company, how it is perceived and what goals to set - an important part of an effective CSR strategy:
http://www.essays.se/essay/53556b2582/
http://www.accaglobal.com/general/activities/sustainability/acca/csr


A very clear look at what CSR is, historically, legally, and ethically as well as its definitions, limitations, and benefits:
http://www.referenceforbusiness.com/management/Comp-De/Corporate-Social-Responsibility.html

In this piece out of Canada, Maclean’s looks at the interesting trend of companies choosing to continue corporate social responsibility initiative despite the economic downturn. Expected to be the first budget items cut, most companies actually stood strong and continued their efforts. Others saw the weak economy as an opportunity, using the situation to jumpstart their own socially responsible programs at a discounted cost. This trend emphasized the importance of long-term planning in a business environment.
http://www2.macleans.ca/2010/06/14/a-conscience-choice/

In a blog post by Matt Kopac of email marketing company iContact, the firm highlights their recent corporate social responsibility efforts which led to a goal of becoming a “B Corporation.” B Corps are companies that use “the power of business to solve social and environmental problems,” and there are already 285 of them in the US. This is an interesting business trend that strays from the traditional “profits first” approach that has been followed in the US business culture.
http://blog.icontact.com/blog/icontact-getting-serious-about-corporate-social-responsibility/

This introductory post in a series on corporate social responsibility focuses on the factors and events that have caused the idea of corporate citizenship to grow so aggressively. CSR is first defined in a clear context, before author Gregory Unruh argues that the phenomenon began in 1995 with the birth of CSR reporting. This was followed by a series of events stemming from the twin crises confronting Royal Dutch Shell.
http://blogs.forbes.com/csr/2010/05/07/part-i-in-a-csr-series-corporate-citizenship-in-a-global-economy/?partner=whiteglove_google

with research and contributions from Andrew Chase

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