Corporate social responsibility (CSR) is about more than just handing out charity. It's about doing good and doing it well within the structure of a business. In the past, it seems, businesses cared only about making a profit. But in the present, organisations understand integrating bottom lines with agreed social values can have a positive impact on both ideals.
In Asia, the concept and take up of CSR is still in its infant stages. But it is gaining popularity as organisations become more aware of the need and positive side effects of giving back to society. If a company is to build a long-term, effective CSR strategy it is important that it tracks emerging issues now and into the future.
Staying green
The world's environment is likely to be at the forefront of CSR policies for many years to come. Companies are now allocating more resources to the climate change agenda, rapidly shifting from mitigation strategies to a new emphasis on adaptation. Organisations are also working to reduce their own carbon impacts, both as a business strategy and in acknowledgement of the wider issue.
Bernard Kwok, Senior Vice President for Asia Pacific, Symantec, says carbon emissions are impacting around the world. "Businesses that make the effort to shrink their carbon footprint will reap the benefits of an improved corporate reputation in addition to monetary savings," he says.
Many organisations are therefore opting for "green" information technology (IT) systems that use energy more efficiently. This is not only about reducing the running costs of office equipment. Rather, Kwok says organisations are accepting a social responsibility to reduce their climate change impacts. According to recent Symantec research, 79% of businesses in the Asia Pacific region see their budget commitments to "green" IT rising over the next 12 months, higher than the global figure of 73%.
Suntec Singapore also recognises sustainability and ecological awareness are integral parts of business today. Conservation efforts are in place throughout the venue, from the extensive use of natural lighting to the automatic sensors for hand sinks and toilets.
Anjna Nihalani, Director of Marketing Communications, says Suntec Singapore also boasts water-saving irrigation system that is built into the design of the building. The uniquely-designed roof that makes Suntec stand out in Singapore's skyline, also collects rain water that helps feed the 900 trees planted within the complex.
"We recognise that businesses do not exist in isolation and should be socially responsible," says Nihalani.
Corporate governance
The global recession has led to many concerns about the ways decisions are made in some of the world's biggest companies. With capitalism under pressure, the future is seen as one where companies will have to be transparent and accountable, a HR director for a US investment bank tells HRM.
Richard Welford, a spokesman for CSR Asia, believes future economic stability will depend on new corporate governance structures being adapted. They will need to better represent the views of a wider range of stakeholders. "Pressure from a new breed of socially responsible investors will increase the pressure on businesses to behave in an ethical way," he says.
Governments taking stakes in large-scale financial institutions will also have an effect. Citigroup, Merrill Lynch, UBS and other big players will be compelled to carefully analyse future salary structures, ensuring remuneration is linked to performance.
Giving back
Of course, giving back to communities is still a major part of any realistic CSR agenda. Community investment projects, microfinance initiatives, and programmes to encourage entrepreneurship in the lesser developed parts of the Asia Pacific region are all enthusiastically endorsed by businesses today.
Locally, organisations are spearheading community education initiatives and contributing to welfare and citizenship programmes.
Banyan Tree, an exclusive resorts operator, says its "Seedlings" programme provides opportunities for disadvantaged children. The group-wide initiative help them develop the motivation and means to successfully enter the labour force as adults.
Claire Chiang, Chairman of the Banyan Tree Group's CSR Committee, says the organisation works with youths aged 12 to 18. They are taken through a specially designed mentorship programme in association with the University of Wales. Those that cannot afford to continue education are offered scholarships, while all are welcome to complete internships within Banyan Tree Resorts after matriculation.
The business case for CSR
Corporate Social Responsibility (CSR) is increasingly being seen as an integral part of normal business operations. And, as two HR professionals told HRM, it helps to create sustainable and profitable outcomes in four ways.
CSR creates shareholder value. As investors become more concerned with companies that have good corporate and social responsibility images, so too do share prices increase. A company's performance as a responsible business is key to its financial and stock market standing, helping to protect it from instability and volatility.
CSR can boost factors which can increase revenue. CSR initiatives and cause-related marketing can help to build reputation and goodwill among both suppliers and customers.
CSR gives corporations strategic branding essential to long term reputation. This is fundamental in maintaining and attracting a loyal customer base. Consumers today are savvy and sensitive to a company's image and CSR efforts. So a distinctive CSR profile serves as a strategic branding tool in differentiating from competitors.
A positive CSR strategy can help to retain human and intellectual capital within the organisation. Good workplace conditions and relations can help a company attract, keep and develop human capital, keeping staff morale high and further adding to the bottom line.