Covid-19 pandemic , half-forgotten new ( old ?) viruses like monkey pox , climate change and unpredictable droughts and floods , the war in Ukraine and the resulting energy crisis , high inflation , economic and political uncertainty CSR deserves a lot more attention and a rethink (… and yes , it will still build the brand / s involved , but in a way , this should not be the primary focus ).
Increasingly CSR programmes ( or ESG activities - as we will see later ) need to focus on all four terrains of responsibility of businesses operating in the world today : the Ethical , Philanthropic , Environmental and Economic . The aim is to act , operate and sell products and brands to the advantage of the company or business , but also to take the advantage of consumers / citizens into account .
This was vividly illustrated in an interview with the CMO of one of the four biggest banks in South Africa on Wednesday , 25 May 2022 . He admitted that , with the advent of the pandemic , companies have had to ensure that they tap into their consumers ’ increased need for brands to connect with empathy , trust , integrity and “ being real ”. These elements of a brand ( or service ) should be supported by and even built by appropriate and expertly communicated CSR activities .
CSR also makes financial and reputational sense . Studies show that 42 % of the image of a company is derived from its CSR activities . Corporate Reputation ( a whole field of study and research ) is influenced strongly by the CSR activities of a company . These activities can build trust and trust is one of the main pillars of the reputation of any business . Trust convinces your consumers to come back again and again , to tell their friends and families about you and to support the business during a crisis . If you trust a company , it is also unlikely that you will immediately believe bad news about the company and chances are that you will accept the company ’ s point of view and support it again in future .
Why CSR ?
Many companies now realise that CSR - more and more often referred to in modern strategy documents and discussions as ESG ( involvement in Environmental , Societal and Governance issues ) - is more than a check-box activity which , if done well , can reduce headwinds with stakeholders and employees and build trust among other key constituents . As such , it has moved from a line function within organisations and ( metaphorically ) into the boardrooms of the corporate world . This highlights the significant increase in importance that companies place and that stakeholders demand on their CSR / ESG performances .
Companies are also learning that they no longer need to be so modest about their activities . Where companies did not want to be boasting about their CSR / ESG work at the risk of being labelled as insincere and trying to pull wool over the eyes of stakeholders , consumers now want and even demand to know about what companies are doing to address issues like sustainability , diversity and inclusion , responses to environmental crises , representation , and social justice matters .
In a 2021 Ipsos study called Global Trends it was established that Africans feel very strongly about the responsibility of businesses to tackle environmental issues . They also want business leaders to play a stronger role and engage with governments to tackle these issues together .
For many business leaders this is an unknown terrain , mostly seen as the realm of government , but consumers / citizens realise that governments alone will not solve or cope with these issues , therefore the strong call on business leaders to get involved . Research on trust has illustrated that consumers / citizens are placing their trust more and more in big corporations , rather than only in government to address systemic socio-economic issues .
Mari Harris is the Knowledge Director SSA , Ipsos Public Affairs . You can commune with her on this or related matters vide email at : Mari . Harris @ ipsos . com .