CSR as the human
face of business
In our first Report we concluded that a coherent CSR strategy,
based on integrity, sound values and a long-term approach offered
clear business benefits. The benefits then perceived are
increasingly obvious to many corporate leaders: a better alignment
of corporate goals with those of society, and indeed of the
companies own managers; maintaining the company’s reputation;
securing its continued license to operate; and reducing risk and its
associated costs. In other words, taking the longer term view.
Since that Report, the key conclusions of which are set out in
‘Setting the scene’, the debate on globalization has intensified,
bringing further compelling reasons for companies to focus on
CSR. Today, therefore, our business-case argument has expanded
to include the following points.
Concerns associated with globalization, free trade and foreign
direct investment continue to be raised and could threaten
investment and economic growth. These concerns often center on
the belief that social and environmental standards are being
compromised, or that investment decisions are insensitive to local
needs and circumstances. CSR provides business with an
opportunity to demonstrate that this does not have to be the case.
Good CSR policies based on partnerships with host countries and
communities and on implementing the principles of sustainable
development can demonstrate a local commitment on the part of
even the largest global company.
CSR represents the human face of the highly competitive world
of commerce. Perception of this human face is a vital and
necessary part of society’s willingness to accept the significant and
sometimes (at least in the short-term) difficult changes brought
about by elements of globalization.
If international companies set policies, however well intentioned,
from remote corporate headquarters without also fostering
partnerships and local involvement in the communities in which
they do business, they are likely to fuel feelings of alienation and
suspicion. Business today simply cannot afford such alienation
since those very communities are vital to a company’s continued
commercial success. Business needs a stable social environment
that provides a predictable climate for investment and trade.
CSR is the means by which business contributes to that stability
rather than detracting from it. By establishing and maintaining a
corporate agenda which recognizes social priorities and is tailored
to meet them, business displays its human face to consumers,
communities and opinion leaders. Training, the transfer of skills
and expertise, new technological solutions, contracting of
services, helpful infrastructure development, as well as
community social and health programs and a clear commitment to
human rights can all demonstrate the will to be a good local citizen
and to help create sustainable livelihoods. By their social
contribution, companies show the human face of globalization and
reduce fears about the negative impacts of international business
on local life.
For any company, giving a high priority to CSR is no longer seen to
represent an unproductive cost or resource burden, but,
increasingly, as a means of enhancing reputation and credibility
among stakeholders – something on which success or even
survival may depend. Understanding and taking account of
society’s expectations is quite simply enlightened self-interest for
business in today’s interdependent world.
Source:wbcsd
