Corporate social responsibility: the power of perception
Corporate social responsibility: the power of perception
The global economy has changed significantly since we first researched this topic in 2008, and businesses have since had to adapt more than ever to remain competitive. With the economic recovery still fragile in many parts of the world, businesses remain focused on the bottom line whilst consumers grapple with squeezed real disposable incomes. Even in more certain times, there is a competitive advantage to be gained by those businesses which can demonstrate leadership towards socially responsible practices. In the current climate, it simply makes good business sense.
With this in mind, we asked businesses a broader range of questions around their CSR activity this year: What is driving it? What initiatives have been launched? How is it/should it be reported? The key points to emerge from the survey include:
- public opinion is now driving CSR – in terms of how businesses are building their brand and how they are attracting/retaining talent – as much as cost management
- businesses have undertaken a broad range of CSR initiatives over the past 12 months, but the focus remains on improving the work-life balance of staff
- relatively few businesses currently report their CSR activity, and many are yet to be persuaded on the merits of integrated reporting.
Businesses recognise the impact of CSR activity on their financial and commercial success is increasing. How this activity is reported can spur growth in terms of building brand in an increasingly crowded and dynamic marketplace, securing the right staff and strengthening relationships with customers – be they consumers, other businesses or government. Those businesses which can demonstrate leadership towards socially responsible and transparent business practices look set to reap the rewards.
At Grant Thornton, we believe that integrated reporting can play an important role in communicating businesses’ environmental and social impact to investors and other stakeholders. We strongly support the work being undertaken by the International Integrated Reporting Committee (IIRC) on the development of integrated reporting. On a personal level, I am proud to serve on the steering group of the IIRC and am delighted that colleagues form Grant Thornton have also contributed their time to the development of integrated reporting through the IIRC and other initiatives.
Ed Nusbaum
Chief executive officer
Grant Thornton International