Читаем Английский язык. Практический курс для решения бизнес-задач полностью

Английский язык. Практический курс для решения бизнес-задач

Building a business case for CSR is strengthened by the performance of SRI-based companies. The Dow Jones Sustainability Index (DJSI) has historically tracked the performance of companies with active CSR initiatives, measuring them against companies not aligned with CSR principles. Companies with CSR programs have consistently outperformed those without CSR over the past five years.

Legislation and Litigation

Generally, a company’s actions are governed by its adherence to laws and compliance with business regulations. Historically, it has been assumed that corporate leaders are guided by their own moral compass; values and ethics influence decisions and legislation is not required to govern morality and behavior. However, certain corporations have sullied the reputation of business in general. As a result, recently we have seen a rise in legislation, fines, and litigation surrounding corporate responsibility. To be in compliance with current laws, avoid penalties and litigation, adopting a philosophy of CSR makes good business sense.

Avoidance of litigation is another motivator for companies to adopt socially responsible practices. Increasingly, activist and non-governmental organization groups are using litigation in an attempt to change corporate behavior. Previously, efforts by these groups included shaming a company to change behavior through adverse media and filing shareholder resolutions to demand change. These same groups are now filing lawsuits in their attempts to force companies to embrace socially responsible practices.

Employees and Customers

Employee recruitment, retention, and morale are strong business reasons for corporations to integrate CSR into their organizations. Research studies that evaluate the impact that CSR has on employee recruitment and retention offer the following data.

Companies demonstrating strong CSR commitments find it easier to recruit employees, particularly in tight labor markets.

A 1997 study of 2,100 MBA students found that more than half said they would accept a lower salary to work for a socially responsible company.

CSR efforts strengthen a company’s position as an employer of choice.

Morale, motivation, innovation, productivity and creativity are all improved by providing the opportunity for people to work for organizations that not only support their career but also provide for much deeper meaning in their life.

Integrity at work relates to employee loyalty. 40% of employees who say their senior leaders have high personal integrity are also truly loyal to their organization. That number drops to only 6% when employees do not believe their senior leaders have integrity.

Also, numerous studies have shown that there is a direct correlation between CSR and the ability to attract and retain customers. Customer choice has traditionally been driven by price, quality, appearance, safety, convenience, and accessibility. However, increasingly other value-based criteria are influencing purchasing decisions.

Product Improvement / Cost Reduction

Lower recruiting costs, larger market share, fewer regulatory fines, waste reduction, cost savings through recycling, and increased stock price and shareholder value are all tangible metrics for CSR.

Studies also suggest that reduced regulatory costs, and customer complaints are additional financial benefits realized after the implementation of a CSR program. However, there is research that supports a more direct cost/benefit analysis of CSR efforts. Intel provides a good case study of specifically measuring and quantifying their CSR improvement and associated financial benefit.

Intel has a system of assessments and audits that yields hard data regarding the social and environmental performance of its suppliers. This data allows Intel to better manage its supply chain by enabling the suppliers to become part of the company’s continuous improvement process. This process of assessing and auditing its supply chain has been integral in drawing a correlation between Intel’s CSR efforts and their business implications.

Source: www.eorm.com