Learn how to plan any CSR activity, follow the steps to implement it, and finally, assess and report its outcomes.
What is CSR?
Some individuals still view Corporate Social Responsibility (CSR) as synonymous with charity and believe it to be completely distinct from a company’s commercial activities. Nevertheless, in the past decade, this misconception has gradually been rectified, leading to a greater comprehension of the scope and significance of CSR, as well as how it can be seamlessly integrated into a company's operations.
CSR can encompass any field or endeavor that contributes to societal welfare. While environmental responsibility initiatives are commonly cited as examples, projects in areas like community involvement or human rights are also frequently pursued.
Typically, externally oriented CSR initiatives are the ones that receive attention, such as donations, pro-bono work, and similar endeavors. Nonetheless, internal efforts are equally crucial. These may vary from simple objectives like reducing paper consumption to comprehensive supplier assessments that mandate specific employee welfare criteria for vendor qualification.
Defining an Objective
CSR activities are not always purely altruistic, so it is crucial for management to have clear goals. While these activities should genuinely aim to have a positive impact on society, they can also benefit the company itself or offset any negative impact on the community.
One of the benefits could be enhancing the company's reputation, which can help mitigate potential negative publicity in the future. People are less likely to focus on negative aspects if they see a history of positive actions. Additionally, these activities can lead to increased revenue and profit margins. Research has shown that an expanding customer base, especially younger consumers, are willing to pay more for products from companies that share their values. For instance, The Honest Company, founded in 2011 and valued at nearly a billion dollars in 2017, has a strong ethical mission and engages in social activism such as advocating for stricter testing on chemical inputs.
The changing consumer behavior is evident in the Middle East as well. Research and surveys by Estedama indicate that only 4% of consumers in Jordan believe that a company's sole purpose is profit-making, with 62% expecting companies to behave more responsibly.
Another advantage could be for the employees themselves. Working for a company that aligns with their values fosters a sense of community, boosts job satisfaction, and can be a unique selling point when attracting top talent.
Identify the Activity itself
Once you have determined your goal, you can narrow down the types of activities that are most appropriate. It is important to focus on activities that align well with your organization's culture and are ideally connected to your industry. This will increase the likelihood of these activities resonating with both customers and internal stakeholders. Some companies even go a step further by encouraging employees to propose projects or vote on a selection of ideas.
In addition to aligning with your company's values, a successful corporate social activity also effectively utilizes the skills and resources available within the company. This can be achieved by first identifying your core competencies and then developing activities and business strategies based on these strengths. For instance, Facility Management companies could provide pro bono handyman services at non-profit centers, utilizing their existing human resources and equipment.
Communicate your CSR activity
To maximize the benefits of your activity, it is essential to develop a CSR strategy framework for promoting it both internally and externally. When aligning your activity with your company's values and identity, you should be able to craft an authentic narrative that truly reflects who you are.
This storytelling plays a crucial role and is closely tied to brand development, illustrating why effective social initiatives are inseparable from business operations. Brands like TOMS have established their entire identity and narrative around their One for One CSR mission.
Internal promotion is equally important for businesses. Your employees serve as key advocates, and their dedication is essential for the success of CSR programs. This is especially critical when relying on their involvement in volunteering and in conveying the message to customers, potential hires, and the broader community.
Measure and Report
CSR reporting is crucial for assessing the impact of your initiatives, including measuring your Social Return on Investment (SROI). This involves evaluating not only direct financial investment but also resources like employee time. It is essential to establish a framework for measuring and setting SMART KPIs to track this investment. This could encompass gauging customer awareness through surveys, managing social reputation with listening tools, or receiving feedback from Sales to potentially qualify for RFPs that were previously out of reach.
Estedama Advisory provides services to assist in planning Corporate Social Responsibility activities and implementing reporting and measurement in the Middle East. For further details, please send an email to (info@estedama.org) or contact +(962) 796664975.
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