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Irish Independent (Supplement), 19th July 2007
Just over a decade ago, the term corporate social responsibility (CSR) was relatively unknown on these shores. Yet, for years CSR was part and parcel with owning a local company — even if it came without a formal policy. Today, CSR is an integral part of any business strategy, however, and the relationship between business and community has grown substantially. Many larger organisations now recognise the value of investing in their communities at a local level.
Jason Kennedy, director with Manpower Ireland, agrees that many entrepreneurs have been advocating and practising CSR for a number of years, although in most circumstances without a formal policy or indeed without recognising it as a CSR activity.
"It is of course the very essence of entrepreneurs and small to medium-sized enterprises (SMEs) to pursue responsible business practices such as investing in broader social values and generating local economic and social vibrancy," he says.
Kennedy believes that having a good CSR policy brings with it many business benefits.
"For sustained success it is necessary to act in a responsible and transparent way towards stakeholders.
"Companies that have better relations with employees, suppliers, customers and the wider community network benefit from real business rewards including staff loyalty, customer attraction, increased shareholder value as well as developing a positive public reputation," he says.
Tina Roche, CEO with Business in the Community Ireland (BITCI), a business-driven network specialising in CSR and community involvement, notes that communities and businesses are interdependent of each other.
"To have a healthy, vibrant and strong community, you need business and business needs a strong community. Some remarkable things happen when great communities and great companies work together. Of course it makes sense for businesses to be involved in their communities, hi the same way, it makes sense for communities to embrace their local businesses."
A range of members from a variety of sectors make up the BITCI network, including Diageo Ireland, Eircom, Penneys, Johnson & Johnson, Bank of Ireland, Vodafone and Savills Hamilton Osborne King. All have one thing in common — they are committed to improving their positive impact on society. BITCI now comprises over 40 leading Irish organisations, while hundreds of SMEs have joined its community involvement programmes across the country.
All of the companies have some involvement with communities at a local level. Roche uses the example of the Good Morning Blanchardstown project, where a group of people came together to telephone the elderly in the area every day.
While the project started off small, soon it grew and the volunteers started to collect information. The group needed a software package and that's when computer giant IBM got involved.
"The impact that has had on the community is just fantastic," says Roche.
She notes that companies shouldn't just offer funds as part of a successful CSR strategy, but should instead offer skills, people's time and resources. Roche adds that the challenge facing businesses is that very few of them are communicating their best practices. "There is little reporting of non-financial performance and therefore there is no benchmark to allow public opinion or media to assess whether CSR is mere lip service or truly embedded in a company."
In a recent BITCI survey of consumer attitudes towards CSR, less than 20pc of those interviewed could mention a company they believed was socially and environmentally responsible.
We know that Irish entrepreneurship is booming with hugely successful companies of all sizes and sectors. Those companies that actively communicate with stakeholders and openly report on this are best positioned to deliver a successful business strategy in an increasingly socially and environmentally conscious society. For communities to make the most of their relationship with local businesses and indeed multinationals, they must try to get more than a simple donation, according to Roche.
"If you get into a business and get a champion in there, that gets more kudos and more support than you getting a couple of hundred euro. You want to win hearts and minds because then the resources come with that," she says.
This point is backed up by John O'Shea, CEO and founder of Goal. "One of the most important ways a corporation can help the work Goal does in the developing world is through the secondment of highly skilled staff to our offices, thereby maintaining our administration costs at a low level and enabling donor money to be spent where it is intended: to alleviate the suffering of the poorest of the poor," he says.
"Other companies, notably engineering and accountancy firms, have, in the past, loaned us their staff for work in the field offices. These staff eventually return to their jobs at home after gaining invaluable insights and experiences of life and work in a developing nation."
While multinationals are often noted as the companies who lead the way when it comes to CSR, there's no reason why Irish companies cannot lead the way, notes Roche.
Kennedy adds: "Entrepreneurs and SMEs are dynamic organisations that have always recognised the value of CSR, but it is now their turn to learn from the multinationals by putting some formal policy and structure in place in managing these activities."
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