The Same Old Question
(WORLD) Mallen Baker takes on the age-old question of 'what is the business case for CSR'?
In truth, there is no business case for CSR. Any more than there is a business case for innovation. Or for marketing. Or for outsourcing. Each of these processes describe a range of possible activities and any one of those activities may be beneficial or detrimental to the business.
Love the start…
It is a sign of the immaturity of the CSR movement that we still believe it is an 'it' that you either do or you don't do, rather than a discipline containing choices, dilemmas, benefits and catastrophes.
Mallen then drills down to specifics—outlining the risk management aspects of the 'business case to be involved in CSR, plus identity of the brand and impact on staff. He also argues that to not look at CSR in a business setting will only create an unsustainable practice and commitment. Another words, once the business starts doing badly the first thing to get 'cut' will be the CSR activities.
I'll leave you with this:
Sometimes doing the right thing will prove to have a retrospective business case. When Johnson and Johnson undertook their full and comprehensive product recall of Tylenol they did so because it was, in their view, the right thing to do even though some might think it disproportionate. They bore the immediate cost, but long term reaped the benefit of renewed trust - so important for a company in their line of business. That renewed trust meant recovered market share, in a way that companies that responded to similar circumstances more reluctant, such as Perrier, did not enjoy.
Filed by DK on August 14 2006
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