CSR taking on greater importance at public companies

Ever wondered about the reason behind the sudden jump in CSR programs? Well, according to executives doing business: impacting communities is the main reason behind CSR programs.

In a survey released today by Weber Shandwick’s Social Impact, a communications program formulated to address pressing social issues, corporations are seeking to invest in philanthropic or socially responsible initiatives to help their business gain ground in developing communities. The second most important reason for these funding efforts is to give the corporation an opportunity to see its value in action, the agency said.

The survey, conducted in October by KRC Research, includes results from more than 216 corporate executives who are part of Fortune 200 companies and are involved in philanthropic, social responsibility and community relation practices.  

The most striking part of the study shows that more executives are placing emphasis on CSR programs over other business-oriented motivations. Roughly, 30 percent of executives choose social responsibility efforts over customer loyalty, which accounted for 15 percent. On the other hand, 6 percent choose to raise the bar in eliminating competition.  Coming in at 4 percent are concerns surrounding engaging and maintaining employees.

‘We are seeing a shift in how and why CSR programs are undertaken,’ says Paul Massey co-founder of Social Impact. ‘Corporations are looking at community needs and asking how they can narrow and better focus their resources and expertise to foster genuine change on specific critical issues.’

Some other areas explored in this research include the importance of nonprofit organizations for CSR programs. 60 percent of executives said that they are involved in funding opportunities for nonprofits. In their view, CSR investments in nonprofits are more effective because they build a strong foundation that supports a critical infrastructure to drive communication between the business and the consumer.

‘[Our] team has definitely seen an increase in interest from the corporate sector on how best to leverage new and existing nonprofits partnerships to create enduring and mutually beneficial social impact,’ says co-founder of the Social Impact team, Stephanie Bluma.

Also, almost all the executives responding to the study feel that senior leadership can promote the success of CSR programs. Bluma says ‘developing a clear vision and focus for CSR works best when senior management is at the table to help narrow the choices.’

Furthermore, more than one in three of the corporate executives said that community engagement and communications go hand-in-hand. About 59 percent reported an increase in communications around their community within a 12-month period. Having well-defined CSR goals and executive support coupled with expertise can promote successful strategic communications that are essential when luring the target market.

Finally, more than one in three corporate executives (34 percent) said that the most important point they learned from their organization's implementation of CSR is how it demonstrated their company's commitment and impact within the communities they serve.  

‘This research validates the importance of collaboration and partnership in building successful CSR programs,’ Bluma added.