"…the CSR which is emerging looks more like compliance CSR than conviction CSR. The majority of companies may state their compliance with the expectations of society. Only a minority communicate a clear sense of the strong purpose and values that differentiate a company from its competitors." Redefining CSR, 2003 (Tomorrow's Company publication)
Discussion of 'corporate social responsibility' (CSR) has intensified the past few years.
We, at Tomorrow's Company, have long made the distinction between 'compliance' CSR on one hand and 'conviction' CSR on the other. CSR driven simply by meeting regulatory requirements will be insufficient to benefit society; while CSR driven purely by the desire to 'look good' will not survive cost-cutting and be exposed as
superficial or 'green-wash'.
We now have to make this case again in a new context because the debate is evolving and polarising. Among many progressive companies the focus is moving away from 'CSR' to a more integrated approach in which responsibility is seen as fundamental to strategy rather than a distinct activity. This is a principle that Tomorrow's Company has always adopted.
But at the same time, discussions are growing over whether there is a conflict between operational excellence and CSR. Indeed, there is some evidence of a backlash in which against CSR is being blamed for businesses losing focus on core operational issues, experiencing poor performance in areas such as health and safety, and suffering consequences in results and reputation.
Our view is that such problems come about because of too little genuine responsibility, as opposed to too much superficial 'CSR'. Companies which are truly responsible are also highly successful.
In many other countries, the debate remains at an early stage and there is an opportunity to advance it. There is an opportunity for many companies in emerging markets to 'leapfrog' existing thinking and move directly towards a more integrated view of success.
The challenge now is for organisations to make the changes to maintain their success in the long-term. The analysis of our recent Tomorrow's Global Company inquiry provides both the incentive and the means to do this. The incentive arises from the recognition that global businesses should be proactive in addressing wider concerns which will otherwise be more costly and complex to resolve; the means is provided by the combination of redefining success, embedding values and creating frameworks which hard-wires 'CSR' into business strategy and performance.