8/14/2019 Convince Your Companies to Invest in CSR

1/2

Convince your companies to invest in CSR

The mere mention of Corporate Social Responsibility (CSR), makes most think that it is agood business strategy but, expensive! It is very hard to convince company executives to

support it, and worst, many believe that CSR is just for those who have the money to

squander to social projects that do not produce concrete outputs to support business goals.

There may be some truth in it. However, any serious entrepreneur would agree that issues

such as public health issues linked to environmental degradation, climate change,shortage of water, continuing poverty and human rights abuses, coupled with high

population growth, increased consumption and resource depletion all pose major threats

to business. For Many CSR practitioners, it is clear that they see environment and social

issues as one of the major threats to economic value and business success.

I would like to use potable water as an example. Potable water is a socially and

politically sensitive resource. We have already seen conflicts between communities and

businesses over the use of water. In Davao City, a large real estate company failed to getthe approval of the City Council to reclassify the land where to establish a medium-

density housing project because it sits on the citys aquifer. The need to conserve waterfor the residents prevailed over the promised economic benefits from the project.

Competition over this resource is unlikely to change in the near future.

If the business of business is doing good business, then these issues are all going torequire the engagement of the private sector.

With certainty, I agree that in implementing CSR, the risks are much clearer thanbenefits. A bit of scenario planning will help you realize that in many cases business

survival is going to require engagement with the issues and being part of identifyingsolutions to them.

Nevertheless, there are clear and identifiable benefits associated with CSR when it comes

to adding value for instance to both human capital and to products. A number of friendsthat I interviewed would prefer to be connected to a company with good reputation, and

one of their indicators is the companys involvement in CSR. Meaning, benefits of CSR

includes easier recruitment of skilled and motivated staff.

Convincing your companys executive to support CSR would not be difficult if you are

able to establish the strategic alignment of CSR with the business providing collaborative

solution such as in building image, reputation, and brands. I can bet my whole yearsincome if you dont agree with me, that the increased competition brought about by

globalization and information technology progression, credibility is as important as an

excellent product.

Small and Medium Enterprises (SME) can also benefit from improving their image and

reputation. Today, there are a growing number of large companies that really want to help

promote business with small business sector and they are looking small enterprises that

8/14/2019 Convince Your Companies to Invest in CSR

2/2

have established a reputation for good quality, well priced products produced in a way

that is seen as socially responsible.

CSR for small enterprises could nurture this relationship, thus ensuring their place in the

supply chain!

Of course, SMEs are limited in their capacity to act, and therefore need to be focused

when it comes to CSR and not spread themselves too thin. They should not diffuse

themselves with a lot of agendas of different stakeholders. Selecting the most workableand achievable within the companys capabilities, would be a good starting point.

I am a believer of CSR, and what I am trying to prove is that the potentials of this

strategy are limitless to business.

There are organizations and individuals that you can consult to help you define your CSR

agenda and strategies. One of these organizations is the Philippine Business for Social

Progress (PBSP). They can help you explain the CSR concept including the much neededprogress monitoring tools.

For comments, email to roldanalex@yahoo.com