Companies say they reap benefits when they are more open with stakeholders and put social responsibility at the core of their business strategy. According to a new study by IBM, businesses believe they will be more competitive, attract and retain the best talent, and gain access to new business opportunities.
Many companies now see corporate social responsibility (CSR) as an opportunity for growth rather than a regulatory compliance or philanthropic effort. Some 68 percent of those surveyed focused on generating revenue through CSR activities. In addition, more than half believe CSR initiatives contribute to giving their corporations a competitive advantage.
Driving these beliefs is the rising influence of customers who, thanks to their ability to research and share information on the Internet, have become highly sensitised to a broad range of issues.
"The more information these stakeholders get, the more they want to know. This increased visibility of corporate behaviour is driving consumers' decisions on what to buy and who to buy from, who to work for, who to partner with, where to invest," said George Pohle, VP and Global Leader of IBM's Business Strategy Consulting Practice. "It's not only critical for businesses to keep up with the emerging demands of their stakeholders, but to build CSR into the core of their business strategy"
The survey results are part of a new report released by IBM Institute for Business Value, titled, "Attaining Sustainable Growth Through Corporate Social Responsibility”. It surveyed senior executives and directors of strategy at 250 companies across the banking, chemicals and petroleum, consumer goods, electronics, energy and utilities, retail and automotive industries.