Corporate Social Responsibility: What to do in 2015

At The Pink Pony we believe that business organisations should be positive assets for individuals and communities in their area. This is why in our playgrounds we aim to help organisations share their expertise and connect on a human level with local people and communities, whilst having fun and a memorable, rewarding experience.

To be able to guide our partners and friends in their effort to give back to society and build a good Corporate Social Responsibility (CSR) policy, we have recently joined the CSR London Meetup and researched the main trends in CSR. Here we share our insights with you, with the hope they will help you build your CSR projects for 2015!

CSR is a growing market able to generate new business opportunities and investments whilst having a positive impact on society

As a growing number of companies embrace their wish to invest in communities and care for the environment, responsible investment has become a trillion dollars industry, and CSR is increasingly recognized by CEO’s as an opportunity to make profit and encourage investment from stakeholders.

“CSR increasingly becomes more legitimate in the eyes of shareholders and analysts, and is consequently perceived as a set of activities that companies should undertake as insurance-like protection for the relationship-based intangible assets or even as activities that may positively contribute towards profitability”

I. Ioannou & G. Serafeim - The Impact of Corporate Social Responsibility on Investment Recommendations

“The commercial imperative for action is clear. Our research shows that UK businesses have the opportunity to unlock around £100 billion a year in value from new innovation opportunities that address social and environmental challenges.”

Marc Bolland, CEO, M&S - An Economy That Works Report

But even if more companies recognize the need for having a CSR policy as part of their activity, there is still a gap between policy and implementation of sustainable practices, as organisations often lack of knowledge and expertise to run CSR projects and the difficulty to prove the impact of CSR on profits.

CSR makes business and society work together

“A society grows great when old men plant trees whose shade they know they will never sit in”

- Ancient Greek proverb

The 'Economy That Works' report published by an alliance of businesses, NGOs, think-tanks and thought leaders, identifies six key characteristics of a sustainable economy that should become central to government policy making and CSR projects: High employment, Equality of opportunity, Wellbeing, Low carbon, Zero waste and Enhancing nature.

The report also identifies 4 key enablers that are critical to ensuring a smooth transition to an economy that works for businesses and society together: focusing on long-term investments, building an innovative and inclusive culture and strengthening communities.

Need for more trust and transparency in organisations

In our interconnected world where information is available to all everywhere, there is a growing need for transparency in organisations’ both ethics and activities. As Channel 4's economics editor Paul Mason wrote for the Guardian:

"Populations armed with smartphones, and an increased sense of their human rights, will not accept a future of high inequality and low growth."

Oliver Dudok van Heel, campaign director of 'An Economy that Works' - How to create an economy that works for society

“Everyone expects more of companies now – higher standards of business ethics, more attention to social issues and real evidence of a commitment to tackling climate change. This is a challenge, but one that we as a business want to meet, because being a more sustainable business is better business.”

Ruby McGregor-Smith CBE, CEO, MITIE - An Economy That Works Report

The global, socially conscious consumer

The global, socially conscious consumer, Nielsen group

Two-thirds of consumers now prefer brands that give back to society (Nielsen). In a report on Combining profit and purpose commissioned by Coca-Cola, John F. Brock, chairman and CEO Coca-Cola Enterprises, recognizes that we are entering a paradigm shift in the way we do business, as Millenials are more convinced of the responsibility that business should have for the people and society.

In a recent study by Deloitte of 5,000 millennials in 18 countries, respondents ranked ‘to improve society’ as the primary purpose of business. This shift in beliefs is compelling businesses to consider not only profitability but also social impact.

What does it mean for your organisation?

Don’t be afraid of CSR

Organisations must overcome the cliché that CSR activities impair economic development. As shwon in this academic study on the Impact of Corporate Social Responsibility on Investment Recommendations, investing in sustainability and human development actually increases trust from partners, clients, customers and investors.

Collaborate

According to a KPMG study on How Corporate Social Innovation creates business opportunity, a good CSR policy should be performed by collaborating with employees, investors are important stakeholders who can support the success of expansion into this area.

Be Authentic

As BBC Business reporter Shanaz Musafer says in this BBC article: "you have to be authentic otherwise people become very sceptical about who you are and why you're doing it, and that can be very damaging."

Think Global, Act Local

Consistency of policy is driven from headquarters, through adoption of a corporate value framework, while the implementation is to some extent localised.

Go Social

Finally, it is very important to communicate your CSR efforts. More and more companies choose to communicate publicly on their CSR projects, like Unilever UK did with this TV add that advertises their corporate brand on TV for first time as part of a global campaign.

For Alistair Macrow, Chief marketing officer and senior vice president at McDonald's UK , the most important is ‘to spark conversations around the positive impact of the company’. Macrow also underlines the brand's multi-channel approach, which he says is key in helping them share their stories.

(Leo Burnett help McDonald's UK celebrate “What matters” in a new ad by Ben Hiorns on Creative Pool).

It's now time to celebrate your local communities!

If you are now ready to take on your social responsibility and create positive value for the people in your local area, drop-us a line, we’d love to help you define the best way to connect with the people in your local area!

#corporatesocialresponsibility #csr #socialinnovation #positiveimpact #deloitte #nielsen #kpmg #bbc #responsiblebusiness #unilever