Corporate social responsibility (CSR) has had a huge impact on the way business brands behave, not least because of growing pressure from customers. The world’s biggest brands are challenged on a daily basis and it is no longer good enough for them to limit virtuous credentials to their own practices – they must also demonstrate their partners, suppliers and associates are whiter than white. For example, in April, HP released a list of top suppliers in a bid to promote transparency and raise standards across the board in terms of social and working practices. This is already having a profound effect on B2B players. For many years, we have lived in a ‘me’ world. Now, we live in a ‘we’ world. What are ‘we’ going to do about global warming? How are ‘we’ going to reduce our carbon footprint? And business brands, although not as visible to a consumer audience, must adopt this way of thinking or risk being left behind both by clients and prospects.
Long-term benefits
This sounds straightforward, and some large B2B brands have shown moves to bring about change. Witness IBM’s recent pledge to help clients go green through a major campaign showcasing the environmental credentials of its products and services. Or Canon’s investment in resource and energy conservation, and a new, environmentally-friendly head office.
But the current economic climate has heralded an unfamiliar era for CSR, and some brands have found that demonstrating corporate responsibility when purse strings are pulled presents a different challenge to those posed in a comfy economic climate. Of course, the practice of social corporate responsibility is subject to debate when placed in a financial context. Proponents argue there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a broader perspective than their own immediate, short-term profits.
Critics argue that CSR distracts from the fundamental economic role of business; others say it is nothing more than superficial window dressing and should be the first thing to go when money is tight.
It may be beneficial to ‘go green’ when times are good, but how important are ethics following an economic crisis?
Market your credentials
Business brands must be wary of seeing profits and ethics as mutually exclusive. In fact they are inextricably linked, and the strongest brands will find ways to use CSR policies as a selling point. A good example is power brand E.On, which offers a Business EasyGreen energy package that sees it match every unit of electricity used with a unit generated from a renewable wind or hydrosource and supplied back to the national grid. Here, its unique green proposition is used to deliver an innovative service to businesses that will, in turn, help it meet CSR targets.
A degree of honesty is also important. Businesses you approach as prospective customers won’t expect you to have mastered the art of flawless CSR, but they will expect you to be honest. This will cover their backs if their suppliers are audited after having made bold claims about working practices.
Trusted brands positioned in a ‘value’ space are in a better position to withstand a crisis of confidence. Brands that pin their badges on ethics, morals and a sense of responsibility that resonates with mistrustful consumers are more likely to weather the storm.
CSR can’t be seen as a short-term strategy to curry favour with new audiences, in the same way it can’t be abandoned when times are hard. Consider the following three-step checklist to help develop a solid CSR strategy:
1. Be honest
Your customers know the economic climate takes its toll on us all and will understand if you slow down your march to ethical perfection when times are tough. Don’t be tempted to ‘greenwash’ your business. Be honest or you risk embarrassing exposure.
2. Think long-term
One campaign does not constitute an entirely ethical business. When putting CSR strategies in place, ensure they are long-term and feasible – not short-lived, whimsical and unrealistic.
3. Communicate what you can manage
Ascertain how much you can invest in CSR and once you have put initiatives in place, ensure your key stakeholders know about them. It is crucial employees and existing and prospective customers know you are doing what you can. Your brand might be dedicated to CSR, but your customers won’t feel that if you don’t tell them and your employees don’t deliver it.
