Communicating CSR

Communicating CSR

I have to admit that the idea of corporate and social responsibility was always a bit lost on me. Call me cynical, but I always thought the strategy behind major corporations either funding or lending their brands to social and environmental causes was a tad hypocritical, especially if those supporting the cause were among the world's worst offenders.

Today corporate and social responsibility has moved beyond the PR department and evolved into a much more transparent and involved process that is now practiced by more than half of the world's top 250 companies. And, as I'm finding, the more you research CSR, the more interesting it becomes.

Take Shell for example. Shell generates the bulk of its healthy profits from the oil business. It's a grimy industry and a major source of world pollutants. But Shell is surprisingly open about its business practices and the measures it must take to right its wrongs - so to say. Shell has an extensive CSR program and is surprisingly open about its failings, even to the point of disclosing the number of on-the-job fatalities.

While the company can not escape the fact that its business is dependent on oil profits, if you look beyond the corporate language of its environmental policy, it is clear that a lot of work has gone into its CSR program.

The company's CSR work has also become a major focus for its communications and marketing material. Shell heavily markets its developments in alternative energy and environmental sustainability and is obviously not uncomfortable about spreading its message of good corporate citizenship. But at what point does it become less believable to the consumer?

On the flip side of the CSR coin is local airline group Cathay Pacific, which supports and runs a sizable list of corporate and social commitments. In 2006 Cathay published its first CSR report and committed HK$181 million to CSR programs. But, unlike Shell, Cathay did not advertise or market its good deeds.

Despite the fact the company spent a considerable amount of its shareholder money on CSR, there was no chest beating and it looks as though the company would rather employ a philosophy of ‘let the good work speak for itself'. Which brings up an important issue. What role should a CSR program play in the marketing and communications mix?

CSR should play a role in marketing, but should not be limited by it. Good CSR must go beyond the marketing and public relations departments and be championed by everyone from the CEO down. It should also play a key role in how the company presents itself to shareholders, the media, the general public and increasingly the government, particularly for companies looking to make inroads into China.

After researching and reading about CSR for this month's profile with Ruder Finn's Jean-Michel Dumont, what has become clear is that CSR makes good business sense and a solid CSR program can put companies less at risk from social and environmental issues.

But a big problem with CSR is that it is still largely driven by the PR department and prone to spin. This, as in my case, can lead to cynical attitudes towards CSR programs. It's a fine balancing act that can both help and hinder your brand.