Businesses still lack CSR focus

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Companies are becoming more interested in beefing up their corporate social responsibility (CSR) strategies, but they are still stalling when comes to actual execution.

Businesses do not compile and analyse enough CSR data to implement real changes that could increase efficiency, lower costs, reduce environmental impact and improve their reputation with key shareholders and customers, according to a survey conducted by IBM.

Companies are coming under pressure from both the government, investors, and consumers to improve their level of CSR. However, they seem more interested in talk than action at the moment, with 65 per cent still not understanding their customers’ concerns about CSR issues - highlighting what a contentious issue the subject is.

While 89 per cent of business executives from the survey said they were focusing on CSR, it is the gap between goal setting and the actual implementation of policies that forms the biggest problem.

“Our survey participants clearly understand that integrating CSR considerations into their business strategies is essential to their growth and performance," said Eric Riddleberger, IBM's business strategy consulting global leader.

"But it's also pretty obvious many of them don't know what they need to know to actually make changes that would improve both business performance and societal impact,” he added.

Some 70 per cent of companies do not collect data frequently enough to make strategic decisions that could address inefficiencies across eight major categories, including CO2, waste, and labour standards. This could effectively reduce costs and improve their relationships with stake holders, employees, and the community, according to the research.

The issue is complicated, involving communication, sourcing of material, as well as the correct analysis of it - all of which costs money.

As a result, many companies argue that they can’t afford such expenditure, especially during a recession.

"When you observe the speed and scale of the reductions in corporate giving since the beginning of the credit crunch, you can draw your own conclusions about how seriously some companies take it," said Adam Nichols, chief executive of young people's charity Changemakers, in an interview published by website personneltoday.com.

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