What matters in CSR?
The role of CSR in the current business arena is not only significant, however inevitable.
We live in the era of glass-box businesses: https://www.linkedin.com/pulse/2017-your-internal-culture-brand-david-ma...
Organizations, which operate according to brand ideals and create real positive value enormously outperform those, which do not: http://www.jimstengel.com/grow/research-validation/
Tangible benefit relation between CSR and profit growth is proved: http://www.onrec.com/news/news-archive/kenexa-study-finds-tangible-link-...
Unique Selling Proposition is not possible via competing, you will sometimes win, sometimes lose, but: e.g. B corps gain incomparable advantage through their responsible operations. (For further information about how to gain the USP sustainable for your business, contact Fatima Homor, because it must be fitted on your organization.)
While your business utilizes the society for its organizational goals, it must give back in order to keep the balance. We are our own consumers, clients, suppliers, partners.
Those, smaller companies, where the CSR reflection is faster and easier to measure, the probability of long-term sustainability is much higher, compared to others, where value additive behavior is missing. MNE’s CSR implementation might appear on the companies balance sheet later, however the purpose of CSR is not putting more money into the pockets of the shareholders, however is what it is called: the socially responsible behavior and actions of the corporations. In order to be able to gain the real benefits of a core-business embedded CSR profit, growth has to become a result-goal only instead of main corporational objective.
Costs of CSR shall be explained from different perspectives. First of all there is a definite passive cost of not implementing CSR, since in this case the MNE spends huge amounts on competition, running after customers, trying to sell them, instead of attracting them to have the true willingness to shop their products. MNEs without effectively implemented CSR lose money because of its non-existence.
Corporations spend a lot of money on advertising; the largest budget always goes to the marketing departments. However it is hard to measure the profitability of a certain campaign, or its elements. Isn’t it the same in case of CSR? Didem Sinik (PepsiCo, Turkey, Corporate Communications Director, 2016) explained that after careful calculation of the marketing budget to advertise their long-lasting CSR activities (since 2003) would cost ten times more, than what they spend on CSR yearly. The board refused the marketing campaign. The workers, voluntarily from their salaries, cover the major costs of their CSR activities. The PepsiCo CEO, Indra Nooyi describes the CSR attitude clearly: https://www.linkedin.com/pulse/leave-crown-garage-what-ive-learned-from-...
It has become obvious that regardless of its size, if an organization does not take its social responsibility seriously, firstly it loses sight of one of its biggest chances to achieve incomparable advantage; second, the social environment is gradually diminished - destroying the clientele base itself. The second result affects directly the corporations, since both the workforce and the consumers, partners come from the local societies. In case the possible stuff is not well educated, the potential customers don’t have enough money or don’t trust the production; they won’t shop and most importantly won’t become loyal customers.
The importance of CSR seems to be for some corporations still just another tool for further profitability and growth, paid PR or marketing tool, however Korosec (2013) expresses that CSR is a must. CSR must be separated from marketing, and the most optimal implementation is the reorganization of the corporate goals, attitude, the way business is done and the processes performed, the employees, partners, customers and the environment treated.
CSR is a phenomenon of how to become more unique and do well while doing good, (Andreu et. al, 2015) however it should create a new organizational presence. Governments are far less powerful and rich as enormous corporations to change the direction of how business is executed.
The new era of business has started. Shall we call it the next industrial revolution?
Although we can state one fact for sure: business has always been changing millions of lives. Corporations are built up of human beings; we are our own customers, suppliers, shareholders, managers, subordinates, and judges.
The interconnectedness is evident.
Multinational enterprises have become more powerful than governments and have the sheer ability to change societies. The societies we live in, all of us.
My continuous research work and experience state the art of real advantage for a multinational enterprise or an SME, the way how its uniqueness is based on thoughtful value additive corporate behavior.
Competition will always mean the calculation of who is one step behind or further, however the only achievement, which has always been rewarding, adding back where we get from.
Corporate social responsibility is the way of organizational behavior, how the organization as a whole operates, how it creates sustainable and unique advantage, which does not compete. The matter of question is not whether we agree on the interpretation of CSR, but whether we execute it or not in that way, how it shall be in order to gain incomparable advantage.
Via 25 genuine interviews in 2017 with mammoth organizations' top leaders such as Ferrero, Google, Sony Pictures, PepsiCo, UNICEF UK and NGOs and with the help of enormous amount of academic articles and real-time examples the answers are in the CSR strategies built by : why should a company be socially responsible, what does it actually mean, what happens if it does not step onto this road, what might be the obstacles, how it can get over of them, and most importantly how should CSR be done and what are the proved consequences.
Thank you for reading it, I wish your business incomparable advantage based on CSR!
You can contact in the upper right corner.
Fatima Homor MBA