Making the Most of CSR

Viewpoint by Chiaki Nishino, Partner

With benefits ranging from improved sustainability, to reduced liabilities and insurance costs, to an enhanced brand image, Corporate Social Responsibility (CSR) programs have rightfully taken on more importance at forward-thinking corporations around the world. 

Yet too many have been unable to reap the benefits – mainly because they fail to integrate their brand and CSR strategies with overarching business strategies.  A number of companies, especially those in controversial industries like energy and tobacco, have tremendous barriers to overcome when trying to create a credible association with their brand and responsible behaviors. At the end of the day, they will be judged by more than simply saying the right things, but by actually doing them.

Aligning brand, CSR, and business strategy requires the right approach on execution.  I believe there are three approaches.  The first, is the integrated approach, which requires brand and CSR to be in synch, and works best when responsibility is a core company value.  For businesses not yet possessing an organization-wide perspective or proofpoints, there is a selective approach in which sub-brands or strategic partnerships can provide a meaningful competitive differentiator.  The final approach, the invisible approach, is recommended when CSR plays a key strategic or philosophical role, but is not a critical focus of external messaging. 

One size doesn’t fit all.  The nature of the business dictates the extent to which CSR should be employed and leveraged.  In the end, however, three things remain constant. Success of CSR initiative are driven by consistent business practices, consistent communications, and whether these efforts are tangibly experienced by customers.