Corporate Social Responsibility is about what business can do – not about what business must do. It is about opportunities and business benefits – not about obligations or new rules. And the sooner companies develop integrated approaches to identify and react to opportunities the better. And the quicker they put business returns and stakeholders, and specifically the consumer, at the forefront of CSR the better for both them and the CSR business model.
Tangible business benefits are ultimately realized through operational efficiencies (CSR strategy) and effective communications (CSR communications), through PR, advertising, brand, online and other ways to bring the benefits to the consumer and other stakeholders. What is needed is an integrated CSR strategy and communications approach, that is aligned with brand identity and positioning, to effectively engage target stakeholders, especially consumers, and build brand trust, loyalty and affiliation. By working across a company’s different functional areas, understanding and working within the commercial realities of a company, and making stakeholders key, CSR can strengthen and improve the businesses of companies.
CSR strategy development, which is informed by business objectives, market realities and stakeholder input, provides company direction for risk minimization, operational improvements and future growth. This strategy should be informed by and aligned with brand identity and positioning that helps position the company to stand as a responsible and leading corporate citizen – thereby building brand trust, loyalty and affiliation.
CSR communication strategies positively engage stakeholders, specifically consumers, and create on-going dialogue and interaction with the company. This engagement is in turn used to continuously inform strategy, refine brand identity and positioning, and propel continuous improvements creating a cycle of CSR leadership and business benefits.
This integrated approach provides companies with tangible benefits targeted at their own and their stakeholders’ commercial, social and environmental needs as well as the methodology to continuously improve their business, ensure CSR leadership and business benefits, and strengthen brand trust and value – now and in the future.
So, what’s my beef with PR? They play a central role in all this, right? Yes they do. A key role. But my problem is that almost all of them see this as vanilla PR. Yes, they’ll talk about how important it is and say all the right things – remember, they are in PR. But then they will focus on all the philanthropy work of the company – not the operational impacts. They’ll write CSR reports full of beautifully crafted stories of how the company has helped some poor family in Ethiopia, and hardly ever talk about what is material to the company. They’ll pitch the good stuff to the media, but not engage with stakeholders on the bad stuff. They’ll devise participatory employee volunteering schemes, but not talk about the lack of union representatives of the 5% of the workforce that got cut in the last round of ‘streamlining’. And they won’t mention that some workers in the supply chain might be just as bad off as that family in Ethiopia. They’ll talk and talk about the good stuff, because they don’t actually know how the company operates. It doesn’t help that they always talk to corporate communications/public affairs or corporate affairs (take your pick) and hardly ever to product development, HR, manufacturing, logistics, supply chain management or H&S.
One of the experiences that I despised the most while at the International Business Leaders Forum was the PR agencies constantly running to us to help them in their communications of their clients CSR practices. And this ‘advice’ can range from helping them write a CSR report to just telling them what CSR actually means, or just ‘engaging’ stakeholders. But when it came to the client or public, they acted as if they knew everything. Man, they can tell you in so many ways how they can bring the CSR of your company to life – whether you actually have CSR practices or not is irrelevant.
The problem is that PR agencies are geared towards communications. Yes, it might be aligned with the brand or corporate values if you are lucky, but PR agencies know zilch of operations. They will spin you stories on how important operations are, but they know very little of the actual dynamics of business outside communications. PR agencies are good at the communications bit, and consultants are good at the operational bits. But they talk different languages and have very different views on what brings value to the company. PR agencies see the value of CSR as how they can ‘PR’ it. Talk about it, blow it up bigger than what it is and pull off a few gimmicks. But CSR will remain outside of the company and remain without value if you have a PR approach to it. Yes, PR agencies all of a sudden have CSR departments and talk the talk. But have a close look at the people they employ at the CSR unit – PR or political campaigning backgrounds. Not those who have an understanding of operational improvements or even global developmental backgrounds. CSR will remain meaningless if we allow it be driven by PR. It must be driven by both communications and operations. And we need people to understand both. If not, well then we will continue to not bring business benefits AND development gains.
Just look at what consumers believe – they believe everything is spin. And they are not far off when it comes to the role of PR in all of this. And the examples like Wal-Mart and their online strategy is not good stakeholder engagement. But it happens when you drive your CSR through PR communications. PR has a role to play, but they need to get their house in order before they kill off CSR completely.
But don’t worry. PR is not the only guilty one from an agency side. Those consultants. They know nothing of communications. Or actual business benefits. They’ll do your CO2 emissions whether you make cars or plant trees. And design new eco-friendly offices whether you are a financial institution or farmer. No, they’ll sell you anything as long as it can relate to something in your operations. Don’t get me started on them…