CorpComms Magazine

Stand-alone Corporate Social Responsibility (CSR) departments may soon be a thing of the past as corporate leaders accept the long-term business case for sustainability and the need to integrate related activities within day-to-day business, according to a new report.

An overwhelming majority of business leaders advocate greater integration of sustainability into day-to-day company activities, with 96 per cent supporting its incorporation into company strategy and operations, 91 per cent pledging to employ new technology to address sustainability concerns over the next five years, 88 per cent backing its integration throughout their supply chain and 86 per cent committed to appraising investors of its value as a long-term investment.

The report, 'A World in Trust - Leadership and Corporate Responsibility,' from Echo Research in conjunction with the International Business Leaders Forum (IBLF), suggests companies need to implement performance measures directly linked to responsibility and trust if they are to drive future success. It also demonstrates that a relentless focus on short-term results and the bonus culture is damaging trust in companies.

The media spotlight has increasingly focused on corporate responsibility and the low carbon industry over the past decade, according to the report, and business leaders predict consumer interest and legislative pressures will drive even greater focus on corporate behaviour in the future.

But companies looking to integrate sustainable practices into their business activities will face challenges. The recession has led to financial restrictions while investors continue to focus on short-term profits. Similarly, there is a fear that those international businesses that might not abide by the same ethical codes of practice will be able to undercut more responsible corporate players.

Business leaders believe that governments have a key role to play. Companies operating under hazy or impractical governmental guidance, or in an environment where the government either cannot or will not enforce legislative rulings, or attempts to escape its own constitutional responsibility, are at risk of sidestepping truly sustainable practice.

The report found that it is essential to involve employees in corporate responsibility initiatives in order to drive and maintain momentum once the initial buzz has died down. Involving teams and instilling enthusiasm in new employees while implementing initiatives in a constant and disciplined way is vital.

Those companies that introduced innovative staff benefits, put waste to good use or bought directly from the economically disadvantaged received the most positive media reception for their sustainable activities. However, the report found that companies that companies who had previously been accused of implementing sustainability initiatives out of self-interest or who previously had poor track-records in this area were not disadvantaged in press coverage of their current activities.

Companies that exhibited a poor sense of social justice, such as the banks during the bonuses scandal, or those who denied facts that threatened them commercially, such as drinks companies that refused to acknowledge the link between pricing and consumption, received the most negative press coverage.

Graham Baxter, acting chief executive of the IBLF, said: 'For trust to flourish among sceptical customers, corporate responsibility must be built-in rather than bolted-on.'

Sandra Macleod, group chief executive at Echo, said: 'We've been tracking CSR since 2000, and have seen it move from PR-driven 'greenwash', through to it becoming critical to the organisation's success in driving innovation and change in order to be trusted and valued in the long run.

'This is not a route map for the half-hearted, nor is it a PR exercise. Our leaders spoke of their commitment, focus, determination, and drive to address the business challenges and opportunities with stakeholders and partners in a completely new way in order to be successful and truly fit for the future.'

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