So what is CSR?

I was at a seminar yesterday hosted by NSAI (National Standards Authority of Ireland) primarily for the update they were providing on the development of ISO 26000 Guidance on Social Responsibility. One of the speakers was Finola McDonnell, Senior Policy Executive with IBEC (Irish Business and Employers Confederation) who is also a member of the NSAI CSR Committee. Finola offered a good definition of CSR which I think usefully encapsulates what it should be. She suggested that it’s “how you make your money, not how you spend your money.”

It still seems that for most people Corporate Social Responsibility means companies giving to charity. It’s not. It’s about running a good sustainable business that treats all stakeholders well. If part of that is giving to a cause that’s fine but just giving to a cause doesn’t suddenly turn a company into a responsible company. In fact if a business donates to a charity but doesn’t meet its responsibilities in other areas it can be really dangerous, creating distrust and cynicism amongst those stakeholders that are not being treated properly. Imagine being the employee at a company where health and safety issues were ignored or bullying and other types of bad behaviour were tacitly permitted. How would you feel about your employer announcing a big donation to charity? I think you’d see it as a PR stunt.

I made this point recently to a senior manager of a large utility company. As a customer I’d had a very bad experience with faults in a service which I purchase from them. Customer service staff had tried hard to help me but it was clear that they were struggling and hadn’t had much training on this relatively new service. This company has a well publicised CSR programme which incorporates some really interesting and innovative schemes which do link into their business model. I love these programmes. But as I pointed out to the manager real CSR is not just the ‘Wow, look at what we’re doing’ schemes. It’s about giving their customers what they pay for and supporting their staff with proper training.
 

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