CSR offers the improved anticipation and management of an ever-expanding spectrum of risk. Effectively managing governance and legal, social, environmental, economic, and other risks in an increasingly complex environment can improve security and overall stability. Consideration of the interests of all the parties involved and impacted is one way of improving the anticipation and management of risk.
From an external perspective, the organization will be ensuring that all suppliers and partners working with it uphold the principles of the triple bottom line (people, planet, and profit/benefit).
Added value of CSR: recruit, develop, and retain staff
CSR implementation provides an enhanced ability to recruit, develop, and retain staff. This can be the direct result of pride in the organization’s practices, or of introducing improved human resources practices such as “family-friendly” policies. It can also be the indirect result of programs and activities that improve employee morale and loyalty. Employees are not only a front-line source of ideas for improved performance, but are champions of an organization for which they are proud to work.
Importantly, CSR implementation also contributes to improved innovation and positioning, for it is about seizing opportunities, as well as avoiding risk. Drawing feedback from diverse stakeholders can be a rich source of ideas, resulting in huge advantages. Any history that describes the operations of a good organization that is successful in its endeavors proves that such an entity is always alert to trends, welcomes innovation, and responds to changing external indicators and circumstances.
The financial aspects of CSR are also hugely beneficial. Enhanced operational efficiencies and cost savings arise from activities and policies identified through a systemic approach to management. For example, assessing the environmental and energy aspects of an operation can reveal opportunities for turning waste land in a park for all employees to enjoy, thus contributing to overall organizational well-being, while protecting the environment.
CSR offers an enhanced ability to address change; any organization/ministry/corporation that engages in regular stakeholder dialogue is in an excellent position to anticipate and respond to regulatory, economic, social, and environmental changes that may occur. Increasingly, it is known that CSR-related considerations can operate as a “radar” to detect evolving trends in the market.
Added value of CSR: enduring alliances and improved stakeholder relations
Improved citizen and stakeholder understanding of the organization and its objectives and activities translates into improved stakeholder relations and a more active and respected position within the community. This, in turn, may evolve into more robust and enduring alliances (all of which relate closely to an organization’s reputation vis-à-vis CSR implementation). CSR can help build “social capital”, that is, the economic and/or collective benefits that come about as a result of cooperation between individuals and groups.
Added value of CSR: catalyst for the responsible guardianship of resources
Finally, the adoption of CSR strategies and policies is considered a catalyst for the responsible guardianship of resources, such as water. Changing today’s unsustainable patterns of consumption is widely seen as an important driver to achieving sustainable development in the long-term.
To develop sucesfull CSR strategy and tactics, join one of EMG CSR trainings and workshops or contact us.
EMG team will present at CSR in Jeddah and Founder and CEO Daan Elffers will chair the CSR Summit KSA on 24th November 2014.