Corporate Social Responsibility : What's in it for us and how do we know it's worth our while?
As a corporate or government body, how do you measure success in terms of dollars spent and return received on community investment?
The issue of Corporate Social Responsibility (CSR) is a hot topic. More and more organizations are making significant business decisions based on ethical values. They are motivated by forging stronger relationships with stakeholders, including employees, investors, consumers and the community. But how do you know your efforts have achieved the desired results?
For most, it depends on where your initial goals lie and your reasons for undertaking the program. Goals range from creating awareness in the community to raising funds for a specific project to enhancing the quality of life in your region to supporting environmental initiatives. The common goal is they must all have a positive impact on the bottom line.
In a speech delivered to the national Canadian Financial Planners Conference, Joan Currie identified seven key business benefits for corporations who exercise responsible CSR practices.
These include:
- improved financial performance through increased sales from publicizing your community and social initiatives;
- reduced operating costs through environmentally-friendly projects such as reducing waste;
- enhanced brand image and reputation with the public and in the business community;
- increased customer loyalty;
- increased ability to attract and retain employees;
- less regulatory scrutiny and government intervention;
- access to capital through well-defined market portfolios.
For Harvey Deutschendorf, the Training and Event Co-ordinator at Edmonton Region Alberta Human Resources and Employment office, defining success through community initiatives is a case of measuring results against a business plan.
“We are moving toward specific goals, so we are able to measure if we were seeing value for our dollars,” he explains.
Deutschendorf's office manages the regional Canada Career Week Fair, a national two-day initiative for youth aged 18 to 24 which garnered the Premier's Award for Excellence in 2003. He says in the last three years benefits were easily measurable by dramatically increased corporate sponsorship dollars and participant numbers, a vastly expanded exhibitor base and greater overall awareness of the event and its goals.
He says in one year, participation rose 58 percent from 6000 to 9500 participants. “We are getting a lot more out of our dollars,” he explains, adding Currie Communications developed an extensive database of exhibitors, potential sponsors and participants.
“We've never had that before, so every year Joan keeps refining what has worked and what could work even better.”
For Fort McMurray-based Rosealie Barnes, Community Investment Co-ordinator at Syncrude Canada, CSR is about sustainability and linking investment to the quality of life in the areas where they operate. She says a majority of Syncrude's community investment budget stays right in the Regional Municipality of Wood Buffalo.
“We know what's required up here,” she explained. “Beyond the working hours it's also the quality of life for families and children, too.”
She said Syncrude proactively invests in practical concerns which may seem to be outside their core business but the success of which has a direct impact on their employees and the community as a whole.
Recently Syncrude aided in the difficult task of attracting qualified health practitioners to the north by donating substantial funds for an MRI machine.
“We've poured money into specialized equipment that requires specialized expertise to run it,” she said. The net result is the community is better serviced and the necessary expertise is in place.
Syncrude also identified a significant obstacle to recruiting new employees: Fort McMurray was experiencing a severe shortage of affordable daycare spaces. So in partnership with Suncor Energy and Keyano College, Syncrude built a townhouse structure which they turned over to the YMCA to operate as a massive daycare facility.
“It's not our business to be in daycare but we had a problem and we need people who can work so we are working toward eliminating the problem,” Rosealie explained.
For Syncrude, their investment dollars are most often tied to educational, environmental, health, aboriginal and arts and culture initiatives. They released their first-ever CSR Report last May and they are a lead sponsor of the Conference Board of Canada Corporate Social Responsibility Report.
Dave England is Program Manager in charge of the Alberta Order of the Bighorn Awards, a recognition program by the provincial Sustainable Resource Development Fish and Wildlife Division. For him, success of his event which recognizes outstanding contributions to fish and wildlife conservation is two fold: happy politicians and satisfied guests.
“It's pretty easy for us to measure success,” he says. “If our Minister is happy and our award recipients are made to feel welcome and they don't recognize how much we have to push them along to do all the things we do in a short time frame – then we've done a good job.” Dave says he always knows the efforts have been successful when he receives calls after the fact from recipients who say “I've never been treated so well or felt so good”.
So the success of your community investment efforts can be measured in many ways. Your goals will determine your benchmarks which, expertly implemented, will yield significant bottom-line results.
