Corporate social responsibility (CSR) was originally conceived as a way for corporations to have a positive impact on their employees, stakeholders, communities and the world. While some notable organizations still take those earnest intentions to heart -- and many more should, given notable directives like that from BlackRock -- others have used it more as a reputation builder than as a change maker.
But times have changed, and communications strategies must respond through authenticity. Today, customers and employees are speaking with their values as well as their wallets. They still care about cool features and great customer service, but they also care about what matters.
Trust is at stake for every organization. We have fake news to go with our alternative facts. The pressure for clear communications from trusted spokespeople can be intense. A byproduct of this environment is the reinsertion of businesses into the discourse on political, environmental and social issues. As I co-wrote last year, businesses have become the new battleground states.
The Call For CSR
Engaging in these weighty issues can seem tricky and even risky. Brands must stand for something because consumers demand it, but they must also live it. Nielsen recently published its annual Global Corporate Sustainability Report, which states that 66% of consumers will choose to spend more money on a product from a sustainable brand. Not only that, it is expected by 81% of millennials that their favorite companies have identified values. It’s not as treacherous as it sounds. If organizations use their values and principles as beacons, everything can flow smoothly from there.
BlackRock CEO Laurence Fink, for example, whose firm manages $6 trillion in investments, recently informed leaders that they need to do better -- doing well in business means they also must do well in society. According to the New York Times, in a letter Fink wrote to other executives, he said, “To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.”
Google created a $4 million humanitarian fund (their largest to date), in response to President Trump’s immigration order, so they could help free travelers who had been detained at U.S. airports. Google’s CEO, of Indian descent, spoke out against the cruelty of the order, citing its effect on recruiting talent and on current employees and their families, as many of Google’s staff hail from the banned Muslim countries. Other tech giants followed suit.
Patagonia is one of the most aggressive examples I’ve seen of a company that takes its values seriously and uses its influence politically. When the government reduced the size of protected land, the outdoor apparel retailer took it as a direct attack on its mission and passion. They boldly used their website to educate and encourage customers to have a voice in the conversation.
And I like Amour Vert, the online clothing company that plants a tree for every t-shirt sold. Its founders decided to shift their business model to a more sustainable one when they learned that fashion was the No. 2 most polluting industry -- after oil. Stylish celebrities such as Blake Lively and Olivia Palermo are aligning themselves with the brand, helping to develop a new genre: sustainable fashion.
Taking A Purposeful Approach
This isn't a strategy any organization should enter lightly, but it's going to separate the organizations that engage and the ones that don't. Brands that do this well are transparent in their actions and clear in their words. When something doesn't work, they speak up. When they establish benchmarks for change and don't meet them, they talk about why. And they are willing to hear from the opposition. This requires an openness to discourse and a commitment to follow through. Before embarking on this path, any organization should ask itself these questions:
• Who are my stakeholders and what do they care about? Is it aligned with our initiatives?
• What are my guiding principles and values and how are they reflected in these programs?
• What is the change we are trying to effect?
• Who are the naysayers and how will we handle their dissonance?
• What is the impact on my bottom line?
• How will we measure and report on success?
These lofty endeavors should be measured by how they engage employees, customers and stakeholders and how they support the bottom line. It’s time to come back to a basic truth: What’s good for humanity is good for business.
