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CSR and Business Goals: Beyond Philanthropy
25 de May de 2022
Companies are as sensitive as a seismograph to the movements of society, and society reacts and conditions companies. They are not hermetically sealed compartments and they never were. It’s been like this, since the dawn of the free market. Adam Smith, the father of modern capitalism, already pointed out the importance of social responsibility as the driving force of liberalism. According to economist Aldo Olcese, “he was the first one to talk about private interest as a tool to excite public interest”, which makes him a pioneer on modern Corporate Social Responsibility.
This concept has been experiencing reformulations in recent times. During decades, CSR has been linked to philanthropy or donations — giving some of their benefits back to society through isolated actions. It was in the 50s that this area started finding its place inside big corporations and, although its philosophy was aligned to managerial goals, it didn’t permeate them — it wasn’t cross- sectional.
Investing in CSR to Win the Future
New CSR trends are starting to put social goals and strategies at the core of the business or, at least, presenting a cross-sectional approach to processes and areas. There are many companies that were born out of the heat of CSR whose principles completely align with sustainability, fair trade, human rights and ethics. Other companies that already existed have been taking some actions and prioritising social responsibility.
Experts think there’s no other way than putting CSR at the centre of every action and to fully commit to the transformation that society demands. It’s only in this way that business goals will converge with the new values of sustainability and fair trade. This means investing in CSR in the same way that companies have invested in digitalisation — a big investment and a firm bet to maximise future competitiveness.
A Goal for Each Part of the Chain
Users now have access to information like never before, as well as a critical opinion that’s stronger than ever. Cosmetic measures won’t do it. People currently celebrate and foster a greater involvement with social goals. Companies themselves, understanding the importance of transparency in this matter, showcase the value of their contribution towards sustainable production processes.
New CSR hopes to take part in the whole production and supply chain. It’s possible to reduce energy costs, water and raw materials, foster sustainability in every area, broaden the scope of Circular Economy, support local production, fair salaries, etc.
Keys to Maximising Social KPIs
A company’s KPIs don’t just speak the language of numbers. There are many companies that are already including CSR in their planning and integrating this area to management teams. These are some of the keys to turning Social Responsibility into an asset:
Investment: CSR requires a determined implication that can be achieved by supporting different actions regardless of their cost in order to get the social benefits and the benefits that come from aligning your actions to the users’ interests.
Transparency: How is my company helping the planet and the social economy? Access to information, nowadays, is huge. It’s not enough saying “we are a green company” and then hiding what we’re actually doing.
Opportunity: Circular economy and sustainable development must be understood as an ally for corporate visibility and operation. Also, you must be ready to take every CSR opportunity at every stage of the production process.
Pedagogy: Companies have great social impact and can be heard very loudly. It’s important that they know how to communicate what they are bringing to the table in order to foster sustainability in every area and among their clients and suppliers.
Evaluation: Social goals are already part of the profit and loss account. It’s important to be able to keep an eye on them and draw conclusions in order to analyse what’s been done and what’s been achieved; and then act accordingly.
CSR Virtuous Cycle
CSR executives know that the best way to implement changes is by having sustainable development culture permeate every department and the company’s strategic vision. It’s more about developing a culture than about promoting specific actions. Even if we have a well thought out plan, if there’s no implication, it’s worth nothing. CSR demands a chair in the top management table.
Clients can foster a convergence between companies and social goals, just like companies can educate clients with more sustainable habits. A virtuous cycle will develop between them and everyone involved. For example, suppliers can pressure the companies the supply for and help them reach new ways of producing. In this way, the whole chain becomes a showcase, both towards the inside and the outside of the company, boasting values related to recycling and circularity, fair trade, human rights and sustainable development.
CSR must also integrate all sorts of companies. Big companies have been investing and accommodating to social demands regarding sustainability and diversity. But medium and small companies can jump in as well and help build a more fair and viable world.
Corporate Social Responsibility goes beyond philanthropy — in the world of today, companies must integrate it with social justice and sustainability goals, know how to communicate it and invest in order to profit from social impact.
Click here to watch the complete talk on CSR with Celina Tamagnini, Co- Founder of Circoolar; Claudia Londoño, Director of Talengo; Catalina Arias, Sustainability Manager at Amazóniko; and Felipe Mendes, General Manager for Latin America at GfK.