I have written about this topic some time ago already, but I found the diagram below very interesting as it shows the three core groups of knowledge areas that CSR pros need to nurture and expand today.

• Stakeholder Dialogue and Comns: Stakeholder engagement is the bedrock of CSR/Sustainability. Especially today as social media and digital platforms are pushing organizations to consider two-way dialogue and active relationships with their stakeholders (i.e. collaboration, co-creation) From internal comns and reporting to community engagement or consumer engagement…listening, conversation and influence skills are key! In the diagram below, they represent up to 47% of all knowledge/skills areas.

• Strategy and Business Management: ‘We can only manage what we can measure’ as the saying goes. I would also add that ‘we can only manage what we understand first’! CSR and Sustainability are first and foremost about business and strategy. It is about understanding/setting business goals and strategies, balancing risks and opportunities, measuring performance and progress, etc. It is also mostly about critical thinking and finding solutions to any types of issues any organization might face within the larger context of the ’stakeholder society’.
  

• CSR Trends and Core Issues: As I said earlier, CSR/Sustainability is an ever-changing field – in a perpetual state of beta. Keeping up with the core CSR and Sustainability issues (i.e. energy/climate, water, compliance/governance, labor relations/diversity, etc.), both in your market and globally is crucial. Staying up to date with regards to best practices, new standards and regulations, latest developments and trends is a must, not only for consultant jobs, but also for in-house positions.

This definitely reflects what I have seen lately in terms of jobs offers and requirements.

However, as I read articles, blogposts, and reports daily, I still am struck by the type of words that are used when talking about sustainability or CSR: both ‘concepts’ are still referred to as “programs” or “initiatives”. The way we use certain words instead of others is important. Words are an explicit representation of how we perceive and value things! Here, it is yet another proof that CSR & Sustainability still tend to be seen one-off projects, disconnected from a company’s business strategy (or even worse, simple add-ons).

Instead, CSR or Sustainability should be seen and valued as a strategy or a strategic management tool that is fully integrated into a company’s business planning and communications process. Why?

• CSR (or Sustainability) is a powerful radar to keep track of stakeholders’ expectations, emerging trends or issues, etc. It is the tool with which a company can assess, and then align with the expectations of  its consumers, employees, business partners, government, etc. and citizens. In this current age of increased transparency and accountability, such “radar” is a critical tool for maintaining and reinforcing a company’s social contract with society as a whole, for building long-lasting relationships with stakeholders based on trust, mutual understanding and credibility.

• CSR (or Sustainability) is also the lens/prism through which a company identifies risks and opportunities, go-to-areas or not. Future sources of competitive areas or not with regards to economic, environmental and social aspects, whether in terms of product development, market expansion strategy, communications and marketing, etc.

• CSR (or Sustainability) is a performance measurement framework, with specific goals, objectives, time frames, etc..against which a company’s operations and reputation are assessed.

If CSR (or Sustainability) is considered as all of the above, then it is much more than just programs. It is a true strategy that is crucial for sustainable growth. It is fully integrated into day to day activities as part of the management system and the decision making process while helping developing adequate communication strategies.

So, what are we waiting for to change our vocabulary?

Images Credits: Getty Images

]]> http://www.sustainabilityconversations.com/2009/10/01/why-csr-or-sustainability-is-not-just-a-sum-of-a-programs/feed/ 0 http://www.sustainabilityconversations.com/2009/09/18/china-getting-your-corporate-sustainability-approach-right-from-the-start/ http://www.sustainabilityconversations.com/2009/09/18/china-getting-your-corporate-sustainability-approach-right-from-the-start/#comments Fri, 18 Sep 2009 07:06:42 +0000 admin http://www.sustainabilityconversations.com/?p=588 This post was originally published on Peter Korchnak’s Sustainable Marketing Blog.

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No week goes by in China without a new Sustainability/CSR conference being held or a new Corporate Sustainability (CS) initiative being launched.

Despite the economic crisis, the field of Corporate Sustainability has kept on growing and expanding. However, as CS is getting more mature, it is also getting more complex, so that a few basic, but nonetheless important, market-specific principles should be kept in mind when launching CS initiatives in China.

Corporate sustainability is no longer a ‘nice-to-have’, but a must have

Not so long ago, foreign companies operating in China could literally buy a ‘good reputation’ through a well-placed donation to a leading politician’s favorite charity or a disaster relief fund.

However today, CS strategies based solely on philanthropy are insufficient and companies that are making increasing profits in China are expected to “give back to the society” and do their fair share through a more hands-on role.

Sustainability efforts do not have to be exclusively green!

It is critical that foreign companies align their Corporate Sustainability efforts with the Chinese political agenda and priorities, since the government’s support, and even endorsement, is necessary to secure market access and credibility with other stakeholders (e.g. government-controlled media) in China.

However, today, being good and responsible does not automatically mean being green. As a result of the economic crisis, the environment has become less of a priority for the government. Limiting further layoffs, improving access to and quality of social services (particularly health and education), and encouraging local innovation are now top national concerns, and therefore ‘hot issues’ to potentially engage with.

Authenticity is key…otherwise beware of word-of-mouth!

Beyond government and media, employees and consumers are also key audiences of CS programs. They have increasing expectations towards companies, and will value CS as a relevant proof of companies’ and/or brands’ transparency and trustworthiness.

However, as multinational corporations in China are traditionally held to higher standards than their domestic counterparts, authenticity is key when engaging consumers or employees. Any ‘greenwashing’ type of accusation or corporate misconduct can be voiced and amplified online by more than 300 millions netizens, which are seen as the most trusted source of information in China. Some examples of past online crises in China show how careful companies and brands have to be when they market their CS initiatives online.

Corporate Sustainability plays an increasing role in driving corporate and brand reputation in China, perhaps more than any other country. Foreign companies are implementing CS programs in China as never before, yet those programs need to be relevant the local context and issues. To do this effectively, it is imperative to have two-way communications platforms in place in order to effectively understand what stakeholders expect., and how to move things forward.

:: The (positive) evolution of sustainability in today’s turbulent times

I liked this short video as Werback really shows how the current crisis and financial turmoil has not been a bad thing for sustainability. Actually, it helped sorting out sustainability. Budget cuts and also the huge decline of trust in business and the need for renewed leadership have led businesses to rethink their sustainability agenda, for the better. ‘Looking good’ initiatives and pet projects have been dropped to rather focus on strategic sustainability efforts that are delivering sustained business value to the company, and the society as a whole.

Sustainability is indeed not a compliance or moral issue that sets limits, it is a business one that creates possibilities and opportunities.

:: Sustainability means more than green. First, understand your stakeholders’ expectations

Werback says sustainability is more than green as it also encompasses social, economical and cultural factors and variables. Actually, just because your product is green does not make it popular or the best seller ever. Companies need to understand their stakeholders’ expectations, and captures what green or sustainability mean to them. Quite often sustainability is more about what it means to them and their families (i.e. linking environmental-friendly to healthy) rather than what it means to the global community (i.e., saving the world).

It’s also important to educate (and engage) your publics so they can understand and value what your company or brand is doing, whether they are your employees or customers.

For those who do not know Adam Werback, he used to be the youngest president ever of Sierra Club and also Greenpeace International Board member before forming his own company, Act Now Productions, to consult to nonprofits and work with corporations on sustainability. In January 2008, Act Now Productions joined the global advertising firm Saatchi & Saatchi to become Saatchi & Saatchi S, which consults with large corporations to “create sustainable visions. You can read more about him and his carrer path (which raised some controversies), check it here, or follow him here on twitter.

This report sucessfully shows how companies are progressing along five developmental stages of CSR, both from the outside in and the inside out.

Not surprisingly, effective stakeholder engagement is key to progress along the different stages. In order to succesfully link CSR with their business strategy, companies must indeed understand what are their stakeholders’ expectations on the ground, and what are the key issues to address. Such approach then enables companies to be proactive (instead of merely reactive) and to change the relationships with some stakeholders from adversaries to partners.

I am even more interested in the fifth stage that they call ‘transformative’: I belive this is when companies are becoming powerful agents of change themselves and when CSR or Sustainability is at the core of their brand or corporate DNA. At this stage companies fully CONNECT and PARTNER with their key audiences (e.g., consumers) to effect positive change. I am also persuaded that this is at this stage that the ROI is the most compelling (i.e. if consumer-oriented initiative, ROI is about brand involvement, brand differentiation, with positive side effects on corporate reputation, etc.).

In China, most of CSR is still at a Compliant stage or Engaged Stage, with a predominance of charity and philanthropic initiatives, which do not offer a very compelling ROI, especially in terms of corporate reputation and stakeholder relationships. What is needed to move foward? Understanding stakeholders expectations and key local issues to strategize locally-relevant and business-aligned initiatives, and this is what makes CSR work in China very interesting and also very challenging.

If you are interested in CSR, I highly recommend you to have a quick read of this report.