Hi
Internet!
Today I
want to talk a little bit about corporate social responsibility and
organizational resilience. As I sit down to write this blog post, I’m very
aware of the fact that I have a lot of thoughts and feelings that I want to
convey in this post, and not a great idea about how I’m going to structure it.
Which
is not a good sign! But if interested parties are willing to bear
with me on this potential stream of consciousness, I promise to make
it as engaging and organized as possible with visual aids, exclamatory
punctuation and sheer power of will.
Cool?
Ok.
bear with me |
Silly
drawings aside, at the heart of CSR is the concept of encouraging a positive or
neutral impact on communities and stakeholders that engage with a given
business on any level, from consumers to employees to investors to host
communities and others. From what I’ve read, this is a term that has been
around in some form since the 1960s, it’s a concept that has significantly
changed over the years and continues to evolve.
In
fact, most of the companies that consumers interact with implement some form of
CSR to varying degrees of legitimacy and efficacy. But why has CSR become such
a buzzy, if amorphous aspect of the modern corporation? Well…I would attribute
this trend to the powerful, engaging, beautiful evolution of you! The consumer.
Listen,
our favorite 60-year-old fierce diva-pop-star Madonna once said, “we are living
in a material world.” And that’s pretty much true and universally applicable.
[Disclaimer:
Some other Madonna lyrics are LESS TRUE AND UNIVERSALLY APPLICABLE but another
blog post for another time my friends.]
We’re
raised to be discerning and enthusiastic consumers from the time that we are
old enough to need things and have an opinion:
“Mommy,
I would prefer the Lion King light-up sneakers instead of the Little Mermaid
ones, please.”
– Me, aged 4.*
*I’m
probably making this memory up.
Of
course, as we grow, our tastes become more discerning and in different ways.
Instead of choosing sneakers based on the superlative qualities of the Disney
franchise they depict, perhaps we choose tomatoes that have been locally
produced to cut down environmental impact, or fleece jackets that come from
safely operated factories that pay workers a living wage. These seemingly small
decisions, made quietly in grocery store aisles and dressing rooms, add up to
something of great and meaningful power.
According to a Nielsen study, fifty-five percent of global online consumers
across 60 countries say they are willing to pay more for products and services
provided by companies that are committed to positive social and environmental
impact.
This trend is especially noticeable in the “millennial” generation, which
represents about $200 billion in annual buying power in America alone,
according to Forbes Magazine. In a survey conducted by the publication, 75% of
millennials reported that it’s either fairly or very important that a company
gives back to society instead of just making a profit.
First of all, woah! 200 BILLION!? Clearly my fellow millennials
are living off something a bit more robust than RA wages. And how cool is it
that the overwhelming majority of global consumers are ready to put their cash
towards companies that are willing to give back? What’s even cooler is that
these socially responsible consumers are influencing market trends and
investment behavior. According to the US SIF Foundation’s 2014 Report on
Sustainable and Responsible Investing trends in the United States, as of
year-end 2013, more than one out of every six dollars under professional
management in the United States, (which comes out to be around $6.57 trillion
or more,) was invested according to socially responsible investment strategies.
So now that consumers and investors are stepping up to the
social responsibility plate, so to speak, there is no better time for
corporations to do the same. And
like I said previously, many companies are doing just that. Your cereal
companies are donating food to those who need it, your computer companies are
assisting with water security programs during drought seasons, your sneaker
companies are lobbying governments on climate change issues. Even your beercompanies are recycling their by-product into fuel-grade ethanol. Indeed, when it comes to social responsibility in the private
sector, it has been proven that there is more than one way to peel a banana.
But, are some methods of “being socially responsible” more
effective than others? I tend to think so, and here is where we really delve
into the realm of TAYLOR’S OPINIONS AND OBSERVATIONS NOT TO BE TAKEN AS FACTS CAUSE
THEY’RE NOT.
So, largely in good faith, companies have seen socially
responsible market trends and consumer sensibilities, and have decided to engage
with some of the world’s toughest and most complicated issues, like hunger,
labor rights, conflict, political instability, water scarcity, environmental
degradation and poverty. And like most tough and complicated problems, these
are issues that are going to require a diversified portfolio of responses from
all sectors and many schools of thought. But unfortunately, it seems like many
companies are laying all of these problems at the feet of their CSR department,
and then going about business as usual.
By this I mean that many companies operate under the impression
that if they have a CSR department that is doing SOMETHING, they
are already doing everything they need to do to be socially responsible. However,
I would argue that while CSR departments are doing incredibly valuable and
important work, it is simply not enough and not always in the right way.
I know what you’re thinking….that’s pretty big talk for
a stick figure.
I know. But let me explain myself: When you look at different
definitions for CSR, there are a few words that come up quite frequently. These
are words like, “duty,” “obligation,” and “responsibility.” In many ways,
social responsibility work is still an obligation, a chore to be completed
parallel to the “real work at hand,” of selling sneakers or making beer or
whatever a company is doing to meet their bottom line and keep the lights on.
And chores are well and good, but I’m sure we all understand the space that
they occupy in our own lives.
We water our mother’s plants regularly while she’s away on
vacation because it’s the right thing to do, but then GAH! All of a sudden, our
company is restructuring and we’re gonna lose our job and then we won’t have a
salary and then we won’t have any money for food and ERRMAGAWD. In a crisis,
the first priority that goes out the window is Mom’s ficus tree right? (My
mother is sitting in a kitchen somewhere reading this like LOL Taylor has never
watered a plant a DAY IN HER LIFE.) Ok Mom, true, but, here’s why I like this
relatable, if highly improbable, metaphor.
Imagine this situation again, if you will:
Mom has asked you to water the plants while she’s away. You
agree to do it because you’re the best.daughter.ever, but then you lose
your job. You’re stressed out, no job means no money, no money means no
groceries! No offense mom, but in the face of this crisis, forget that ficus
tree! You’ve gotta go out and find some new way to make money and buy food…But
wait! What if it wasn’t just the ficus tree that mom asked you to water. She
also wanted you to tend to the garden full of vegetables! And, she said you
could eat some of the vegetables because she wouldn’t need them all. Tomatoes
for dayz! All of a sudden, your “chore” becomes something you want to do
because it’s good for your mom, and need to do because it’s also good for you.
And THAT, my friends, is how you use integrated approaches to build social
responsibility programs with resiliency.
Right, so hopefully that metaphor wasn’t too laborious or overly
simplistic. Basically, what I’m saying is that the world is crazy and
complicated, and sometimes things come out of nowhere. The market booms and
busts, certain products go in and out of style, and companies do what they have
to in order to stay alive. This summer, I’m leaning about the oil and gas
industry. Right now, the price of oil per barrel is at a six year low, hovering
at around $50, down from a historic high of $145 per barrel, with many analysts
saying the price could drop a lot more. In this situation, it’s very easy to
see how a company could decide to cut out all or most “unnecessary”
expenditures- including those incurred through philanthropy work and CSR activities.
However, working for IPIECA has allowed me to learn
about some new answers to the CSR-resiliency dilemma. Local content
initiatives, responsible security operations, and shared value strategies are
just some of the many ways that businesses can structure their operations in
ways that make social good an integrated and significant aspect of shareholder
value. When this kind of proportional relationship is structured in the right
way, it makes social responsibility work more resilient to unavoidable market
fluctuations and unforeseen speed bumps- like the price of your commodity
taking a nosedive, for example.
Next
week, I would like to pick things up with a chat about some of these integrated
strategies, because I truly believe that it is possible to build companies that
are socially responsible from the inside out, and I’m just bursting to buy a
fleece jacket and some tomatoes from one of ‘em.