Lighthouse - January, 2009

C.P.R. or C.S.R?


You may know that C.P.R. stands for Cardio-Pulmonary Resuscitation (CPR) but what about C.S.R? The initials may not invoke the same interest as Sachin Tendulkar, David Beckham or Britney Spears but in terms of achieving sustainable development goals many will argue that CSR is to society what CPR is to the body. CSR is essential in order to save our society and ultimately our world.  Corporate Social Responsibility (CSR) is essentially about how business responds to its impact on social, economic and environmental affairs.
CSR attracts debate and criticism where those in favour argue that it makes strong business sense as companies committed to CSR operate with an awareness which expands beyond their own immediate short-term profits.
The counter arguments are that CSR detracts from the core economic business roles and ends up being nothing more than PR window-dressing.
As consumers have become aware of social issues it has frequently been their reaction to business made disasters which has lead to greater awareness about CSR. Often it takes a crisis to precipitate CSR awareness. The Exxon Valdez oil spill, which occurred in Prince William Sound, Alaska in 1989, is still considered as one of the most devastating man-made environmental disasters ever to occur at sea because of the remote location. It was because of this event that the Ceres Principles, a ten-point code of corporate environmental conduct, publicly endorsed by companies as an environmental mission statement or ethic, were agreed. By contrast, those who argue against the value of CSR will point to the cynical approach of the tobacco companies who sponsored social and sporting enterprises.
You may think that CSR is a current fad but with Christmas only just past you may recall the 1843 Charles Dickens story “A Christmas Carol”, where the reader meets Ebenezer Scrooge, a miserable but wealthy old man. Scrooge works in his counting house with his clerk, Bob Cratchit.  When Scrooge ends up ordering the prize turkey for Bob Cratchit, enjoying a party and recognizing Tiny Tim’s courage and cheerfulness, in spite of Tim’s poverty and disability, Scrooge was demonstrably a CSR forerunner. In the author’s words Scrooge explained that his actions included “a great many back-payments”. 
Within a company social, in the CSR sense, is mostly focused on the relationship between employer and employee. CSR internally centers on health care, insurance policies, social activities as well as sponsoring sport and culture.  When developed externally CSR involves sponsoring and initiatives to develop science, education and charity actions.  “Catch ‘em young” is still a popular generalisation.  This concept goes someway to explaining why companies choose to interact with social projects which help to empower the young.  The “Raise a helping hand” picture was taken at an initiative by “Living Heritage”,  a UK company,  to increase youthful awareness of countryside pursuits - fishing, falconry, archery, dog handling and game keeping.  In recent years all these country facets and skills have been sidelined by computer games, mobile phones, television and the Internet.

Many corporate websites lay emphasis on their commitment to promoting CSR, under the headings of charitable efforts, volunteering, human resources, business development and public relations. Evidence supports the view that CSR can be an aid to recruitment and retention particularly amongst the graduate student market.  Globally the initiatives to promote CSR are expanding.  “The Foundation for Corporate Social Responsibility”, based in Poland, lists amongst its members, Pfizer, Exxon Mobil, Dell, Ford, BMW and McDonalds. Within its mission statement The Foundation states:  “Realising that the greatest incentive to participating in social good is to participate in social good itself……. members live up to their responsibilities to society by being an economic, intellectual and social asset to each community in which they do business.”
In India, major companies including “Mahindra” and “Adani” place emphasis on CSR. “The Adani Foundation” established in 1996 is situated in Ahmedabad, Gujarat and has achieved sterling results by supporting efforts in the development of society, in areas of rural livelihoods and communities, education, and health.
So where does this all lead? Despite what detractors may say, provided that the reasons for CSR are ethically motivated, the resulting returns on all fronts are meritable and worthwhile. CSR stimulates opportunities within social environments and provides the economic equivalent of CPR in areas, where without some external boost; the social structures will stagnate, decline and eventually die. Hence the opening comparison in this article - CSR is the social equivalent of life-saving CPR.

Dave Eager December 2008


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