CSR – just for the big ones?

image cc by Miss Rogue

Some days ago I've been invited by the serbian business magazin "Leader" to write about one of the most common prejudices: CSR is just for big companies! Read here:

„The current economic crisis is all about confidence and reliability.” How often did we hear this statement over the last months? How often high level bankers preached that their business was perfect until the “market” lost it’s confidence? How often experts tried to explain the current situation in an ineffective way? But how often did you hear “We are taking on the responsibility …”? Never.

Economy is not business between computers. All kinds of business still remain being human interaction – regardless the size of an enterprise. Considering this fact it shall be obvious that beside economic values to include social and environmental impacts has to be part of modern globally as well as locally thinking. And that’s exactly what’s behind the ideas of corporate social responsibility (CSR). Unfortunately CSR suffers two main prejudices: It’s mainly about “green” ideas and it is just applicable to big companies.

Acting in an responsible way includes consideration of the environmental impacts a company’s decision generates. Even the first step of identifying these impacts will help to improve awareness and performance. Knowing the problems and the risks will open new ways for the future as well as these considerations will show that ecologic responsibility is intrinsically tied to a sustainable business success. Being “green” is not a fashion trend it is an economic necessity a company will be held responsible for.

Concerning the prejudice of “CSR is just for the big ones”: Finally no human activity can escape the three basic pillars of CSR (economy, environment and society) – there always will be impacts on all of them. And – that’s the issue – the smaller a company is, the more locally it acts the more immediate it will be held responsible for it’s actions. So there is no way to say that SMEs (small and medium enterprises) should not care about CSR. It is just the other way around! And for most of these companies CSR is not an obligation or a threat it is a great opportunity!

So which are these opportunities?

After the first CSR survey the company will get as an immediate result an overview of all it’s activities and the related impacts which mostly already discovers risks and opportunities. These results can lead to e.g. more efficient energy consumption, better quality, higher motivated and loyal employees or simply will show new business opportunities. Getting deeper in the CSR process an active stakeholder engagement will significantly help to improve the company’s image and perception.

After knowing all the basic data and identifying areas to improve a strategy will be developed as well as an implementation plan. So especially for smaller enterprises this is the opportunity to settle up their first management system. Having a management system means nothing more or less than having a system of continuous improvement based on the simple PDCA cycle (Plan, Do, Check, Act). So finally working with CSR will help also SMEs improving their economic performance in the only sustainable way known.

The CSR Company started at March 17th 09 a project in collaboration with the Serbian Chamber of Commerce, CEI and the Austria Development Agency to "CSR to the people!"

An obstacle for SMEs which often occurs is the leak of knowledge and a missing network. Doing things together would be much easier and learning from each other would allow faster improvement. In the case of Serbia the National Chamber of Commerce will offer this platform in the near future for all companies.

A platform for education, best practice, know-how exchange and finally awarding. We are right now on the way to set up a national CSR competence centre which is aiming especially to the majority of Serbian companies – small and medium enterprises. So keep in touch with your local office of the Serbian Chamber of Commerce to benefit from these opportunities. … and there is no company to small for the challenges and benefits of CSR!

To learn more about this highly interesting project contact us, return to this blog or go to www.pks.rs

News on this topic will be available soon!

The human factor

As CSR has a lot to do with human thinking, behavior and weaknesses just have a look at this awardwinning short - and you'll keep smiling for the rest of the day.

CSR and the Media (MN)

image cc by Tristam Sparks

Media and Social Responsibility do not go together well. At least that is the picture we get when looking at the CSR performance of Media enterprises all over the world. Of course these companies are in a difficult position, only bad news is good news and sadly enough not every day a new scandal happens, that would fill the tabloid.

But what here is the real challenge of corporate social responsibility for media companies? Mind you, there is a real debate going on. Companies take a defensive approach to media relations precisely because there are so many examples of journalists with an actively antagonistic viewpoint - editorial comment masquerading as impartial reporting. But then that's part of the point.
Of course media also does good things. The delivering of news from around the world, without fear, without favour, has an immeasurable positive impact. Reporting environmental emissions of a service-intensive industry rather pales in comparison.

Media is one of the most diverse industries in the world, and it is full of contradictions. On the one hand, you have the for example the BBC, which is generally viewed as having upheld pretty high standards of impartiality throughout its history, and is imbued with a public service ethos that has influenced many other followers across the world. On the other, you have the real shark pool. The tabloid newspapers that will quite cheerfully destroy anyone that gets in their way, and apparently likes nothing better than to chalk up the scalp of a government minister or celebrity following some vitriolic campaign. These are the companies that employ the paparazzi who hound celebrities without mercy. Such newspapers recently took to publishing front page photographs of 'upskirt' shots of female celebrities - that's about as low as it gets.

Interestingly, most of the public all over the world would still trust the public broadcasting company more than they would the government. But the question remains - how does one approach the issue of social responsibility with the media? Here we have an industry sector that is hugely powerful - exactly why tyrants and despots have always tried to control it. In most countries, politicians have been shy of facing the fact that this is the one powerful industry that remains largely unregulated, mostly because whenever they look as though they might be about to try, the big guns come out and whichever hapless politician it is gets blown out of the water. On the other hand, there is no doubt that the media companies are right. When they are at their best, they can have a hugely positive impact on society. The benefits of a free press are there for all to see. Tyrants ultimately fail to control information and it can shape revolutions and change worlds. It is hugely positive. Done well.

But where is the pressure to do well? Public Broadcasters have done better than most, because they are under constant pressure both to justify their publicly-paid licence fee and also to show that they are independent of the government of the day. Many other media outlets are so nakedly the tool of their proprietor as to beggar belief. They get away with it only because nobody dares to take them on.

Most companies have to perform well to survive. Competitive pressure means that they produce higher quality products for cheaper prices. But there is no evidence that journalistic integrity is a key competitive feature. People choose their news source on the basis of the interesting scoops. And currently, the papers that feature the barely bikini-clad photos of celebrities in the jungle outsell those that analyse with seriousness the implications of, for instance, the current issue on environmental pollution.

So where is the business case here for social responsibility? What is the social responsibility of a media company? Surely, to tell the truth. To accord people a general expectation of privacy and dignity. To expose wrongs, but equally to allow that no-one is perfect. To entertain, for sure, but also to inform. And also to avoid conflicts of interest.

We promote to companies generally the value of measuring and reporting performance - so it should be here. Solid measurement would include number of complaints, and prosecutions, as well as standard measures such as environmental performance (yes, still relevant here!), employee satisfaction and impact on local communities. Oh, and some information about how the organisation has dealt with conflicts of interest.

There are many who feel that many are getting away with flagrant disregard for the former. If politicians cannot say this, because the industry assumes that they are angling to cover up their own misdemeanors - then who can? Most companies have to establish clear values, show leadership in embedding those values, and establish policies and processes for ensuring they don't fall short of them. The media industry currently believes it is so noble by inherent virtue of its calling that it needs to do few of these things. They are wrong. Nobody is immune and who rises high can fall down deep. The media in general is in danger of a steep fall if does not take its own CSR serious.