The future of CSR discussed with industry heavyweights
Over the last 20 years we have heard endless terms used to describe businesses that pursue profit responsibly: CSR; CR; CR and Sustainability; Ethical Business; Responsible Business; ESG; Social Impact; Purpose.
But are all these the same thing, just rebranded?
Less than 50 years ago business leaders were encouraged to think that greed was good: they should put profit first and the state would provide for those less fortunate. (Look up Milton Freedman if you don’t believe me!)
But long gone are the days of money-making being a business’s sole purpose. Arguably, thanks to modern working practices and legal frameworks (let alone consumer pressure and the media) no business would dare operate purely to make profits.
So, if businesses can now only make profit if they are seen to do it with ‘purpose’, have we in fact come full circle? All businesses understand the need to do more than simply generate cash for their shareholders. So why do we still need to have a CSR industry to make this stuff happen if purpose is now so finely weaved into the fabric of a business’ DNA?
According to our guest Nadia Al Yafai from Royal London, “to say CSR is dead would suggest that it has reached maturity and I don’t think that is the case in most organisations.” We polled our audience and discovered overwhelmingly that 91% agreed.
All our panellists agreed that terminology to describe the function (even their own job titles) was confused. The consensus was that ESG focussed more on risk and investment even though it has grown and seeped into other areas of business. However, CSR didn’t necessarily cover the breadth of the task businesses are facing, particularly when it comes to measuring impact.
That said Jo’s experience of working with clients across various industries as seen a shift towards looking as ESG alongside culture and business strategy. CSR can therefore be considered the engine that makes that happen.
A sector-wide study could help to better define what we mean by CSR in a modern workplace and suggest alternative terms.
Nadia did, however, advise “terminology used depends on the maturity of the business. It’s our job to convince the business to future-proof a title and give it space to grow as you demonstrate value.”
We spoke a lot about how to fully embed CSR within a business. It was agreed that purpose-driven cultures and business strategy needed to align. Nadia commented that “if you can crack the right focus areas make them meaningful for your business and help your people on that long term journey to understand how every single person’s job contributes, that then drives culture, change and purpose”.
Emma suggested a number of frameworks from B-Corp to Global Reporting Initiative were helpful to focus teams: “Leaders should choose a framework to align with then decide what is material to their business by considering the views of all stakeholders. Then you can begin to think about accountability and how to embed it across the businesses. Finally measure and report on it”.
Nadia went on to explain how she is currently looking at purpose and societal value as a commercial driver within Royal London. She suggests this is critical to gain internal buy-in as you can show true impact and value, but it can also then be seen as an avenue for innovation.
“Embedding CSR starts with leadership. Hire conscious, purposeful, ethical leaders and equip them with the right skills. You want your people to share your values before they walk through the door. It is hard to get people to change their values so better to hire those who already share yours”– Jo Geraghty
CSR has traditionally been thought of as a bolt-on to business, but it is increasingly being embedded and taking a seat at the top table. This is in part driven by a younger, more demanding workforce and consumer pressure.
It was agreed that while CSR needs to be everyone’s job, it is the task of the leadership to drive the agenda – the days of paying lip service are long gone.
“Induct your board members to enable them to drive change” – Nadia Al Yafai
CSR professionals still have a huge role to play, however, in helping businesses and their leaders attack the agenda at pace, so shouldn’t be forgotten.
“No matter your focus, acknowledge CSR has changed. It has moved from being activity, hours spent, or cash given – this is no longer a good enough measurement. Instead, everything must now be impact focussed. To do this you must be more strategic to demonstrate how you are moving the needle” – Jo Geraghty
The panel agreed that there is now a shift in the market to move from measuring activity and output to the positive impact a business has. This can only be done by being strategic in your approach and focussing on ‘longer termism’.
Nadia went on to discuss how limiting your CSR focus areas to just one or two across the whole business can not only drive important conversations, but also aid the measurement of success and impact.
Our panellists finished the session by future-gazing to give us insight into what they see on the horizon.
Watch the recording below, or get in touch to find out how we can support you with your CSR and social responsibility policy.
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