Top 10 Reasons to Do the Right Thing

They will come and they will ask. And when those soliciting support ask, “Why not?” you need to be able to explain your actions – or lack thereof. You need a plan – a CSR plan. Canadian companies interviewed for the “Measuring What Counts” survey estimated that they were able to support less than 5% of requests from not-for-profit and community organizations, according to the National Round Table on the Environment and the Economy. On average, these companies receive more than 2,000 requests a year, with some receiving almost double that figure. It’s not enough to write cheques until the money runs out under the portion of the budget designated “for miscellaneous.” A CSR plan provides an organization with a strategy.

2. It builds brand loyalty.
There’s no better way to make sure a business is successful and sustainable than to promote loyalty to your business or brand. In a recent survey, about eight out of 10 respondents said that if they heard about a particular partnership between a corporation and a charity, they would be more likely to buy a product that supports the charity, according to research by Boston-based Cone Inc. A solid CSR initiative can be used to forge relationships with non-profit organizations. To avoid social responsibility could be catastrophic to a company’s image. An Environics poll found that 20% of consumers have boycotted products from certain corporations because of negative publicity and a further 20% are considering doing so.

3. Your stakeholders demand it.
Shareholders, customers, clients, suppliers, vendors and probably even your own mother all want you to be a responsible corporate citizen. Your customers want to tell their neighbours, your vendors want to tell your suppliers and your shareholders want to tell their grandkids that they do business with responsible corporate citizens. “They” are demanding ethical behaviour and engagement in philanthropic activities. The majority of citizens, in all but three of 23 countries surveyed recently by Environics, say they think companies should go beyond the minimum profit-seeking definition of their role in society.

4. It helps you recruit and retain talent.
A Stanford University survey of more than 800 MBA graduates from 11 leading North American and European business schools found a substantial number were willing to forgo some financial benefits to work for an organization with a better reputation for corporate social responsibility and ethics. These sentiments are echoed throughout the business world, and everyone from those employed with a mom-and-pop to those working for one of the Big Five banks want to work with socially responsible organizations.

5. Community well-being affects company well-being.
Support the arts and tell new recruits about the fantastic new theatre in town. Reduce emissions to improve air quality and tell your customers that they can feel good raising their children in the city. Use your resources responsibly and they’ll be there for you to continue to use 10 years from now. At a recent forum on CSR, the current MLA and former mayor of Fort McMurray, Guy Boutilier, spoke of the efforts of diverse stakeholders to work together to deal with major oilsands developments in the region. All those with interests in the region, including Syncrude and Suncor, were brought together to discuss the future of the community and of industry. Eventually a new government model was established, encompassing the Regional Municipality of Wood Buffalo, with the objective of building long-term sustainable development for the betterment of everyone in the region. Some would call it a happy ending. Or rather, a happy beginning.

6. It boosts employee wellness, morale and productivity.
British-based retailer Marks & Spencer initiated the “Marks & Starts” programme which gave 2,500 disadvantaged people work experience at the company. Homeless and disabled people and the young unemployed were paired up with a Marks & Spencer employee as a buddy. Research commissioned on the first anniversary of the program found that not only did 84% of buddies say they had learned new skills, but almost half of the staff involved said they had more confidence to take on new responsibilities and about one-quarter of employees said they felt their job was more worthwhile. It’s tough to argue with results like that. While not everyone can bring in homeless people and give them jobs to boost morale, you get the idea.

7. There’s money in it.
No one really wants to admit that money motivates them to initiate a CSR program. Well, it does. There are tax credits and financial incentives galore that are made available to the socially responsible. Most well-to-do countries have these incentives, from small subsidies for recycling printer paper to interest-free, million-dollar loans for building renewable-energy generators. Through its Office of Energy Efficiency, for example, Natural Resources Canada donates millions of dollars each year –up to $275,000 at a time – to companies that retrofit buildings for energy efficiency. Commercial transportation operators can receive a $3,000 grant per vehicle for converting to low-emission cars and trucks. Businesses can also use CSR to reduce operating costs by reducing their uses of energy and materials. Use less heat, less water and less paper and save, save, save. The investment community has also long been exploring the links between corporate social responsibility and the financial performance of businesses, and there is growing evidence – through indices such as the Dow Jones Group Sustainability Index (DJGSI), the FTSE4 Good indices and the Jantzi Social Index – that companies that embrace CSR generally outperform their counterparts that do not.

8. It helps manage business risks.
Any press is good press, right? Wrong. While there’s no amount of positive public relations that could have saved Enron, there’s no doubt that a positive public image, whether reported in the media or spread through word of mouth, can act as a hedge against unpleasant PR incidents such as leaks, losses, outbreaks, recalls, scandals and scallywags. In fact, during a recent panel discussion on CSR sponsored by the federal government, the majority of participants said risk management topped the list of reasons they supported CSR strategies. Companies need to build a positive image before they actually need it to earn them some slack when a crisis hits. “Local restaurant opens its doors to the homeless.” “Accounting firm funds new scholarship to benefit inner-city youth.” “Local businessman leads fight against heart disease.” These were all real headlines. This could be you.

9. It builds a culture of leadership.
A solid CSR plan is an opportunity to show leadership both locally and internationally. A recent Environics poll on CSR found that 53% of respondents in China, 63% in India and 88% in Canada thought that the responsibility of business should go beyond making profits and paying taxes. Show people that is exactly what you are doing and inspire others to do the same. Taking a leadership role in CSR can also motivate those on your payroll. On average, volunteers who bene-fit from employer support contribute about one-third more volunteer hours than other volunteers, according to the Canada Survey of Giving, Volunteering and Participating in 2004.

10. It can give you an edge in the marketplace.
“Oh, you’re going to go with that outfit from Chile instead of us? Well, did you know that 5% of the money we will make on this deal goes towards supporting the literacy of new immigrants to Canada?” At a recent forum on CSR hosted in Alberta, the federal government, through its agencies and departments such as the Canadian International Development Agency (CIDA), the Export Development Corporation and the Department of Indian and Northern Affairs, was encouraged to play a larger role in the development and financing of projects both in Canada and abroad that incorporate elements of CSR. There is pressure to take measures that would see financing requirements of CIDA include CSR performance criteria as part of the contract.

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