The Secret about balancing Corporate Social Responsibility with Short Term Goals.

Consumers, in general, are not socially responsible. And those same consumers are the driving force behind the expression, “what the market dictates”. So that’s probably why there’s been notable resistance around the concept of CSR (Corporate Social Responsibility). Though, at first it would seem a “no brainer”, companies today have many reasons to be ambivalent about adopting these tenets.

For years, companies have been using corporate giving as a marketing tool. According to Business Week, the majority (2/3) of consumers would switch to a product or seller that supports a cause they believe in. In other words, consumers prefer products from socially responsible businesses, and CSR initiatives can help a (corporate) brand obtain a leading position in the market.

In a study done by Hewitt Associates, RBL Group and Fortune magazine, 90% of the top companies in the Asia-Pacific region reported CSR as a significant component of their corporate brand, and most attributed their leadership brand to it. And how about CSR’s influence on attitude branding? It’s hard to argue the potential of CSR to positively affect:

(a) the collective feeling about a company and its products, and

(b) the buyers’ overall consumption-experience?

Globally speaking, many corporations can be more powerful than some governments. Social responsibility is a by-product of that power, leaving CEO’s with some important choices to make. It is the opinion of Marc Benioff, CEO of Salesforce.com, that opting to make philanthropy an integral part of normal operations can exponentially increase the health of your company, your employees and many people in need. However, it also means - a long-term investment of your time, capital and resources.

The economic, social and political value that CSR initiatives can bring is often overshadowed by the absence of immediate gratification or profit. Capital markets are generally ruled by short-term goals and profits, quarterly earnings, quantifiable results, tangible gains, etc. By their nature, most companies are in opposition to the principles of CSR: long-term forecasts for the betterment of environmental and human circumstances, careful conservation and renewing of resources when possible, and (sometimes intangible) results that cannot always be quantified.

Will adopting CSR initiatives really make a positive difference on your company’s profitability? Or, will you’re your philanthropic endeavors cost you, financially, end up looking good on paper, but…give you very little to show for your efforts? There are big ($$) reasons for businesses to view CSR as a thorn in their side, rather than the right, and obvious, thing to do. However, as much as some of us may want to…we cannot afford to deny our Corporate Social Responsibility.