CSR

Firstly, what is CSR and why it is important.

CSR is defined as an effective way to maintain brand image. This is usually done through reporting on a selection of company efforts to show social responsibility to the wider community, such as donations to community grants and activities. Since its introduction, there have been some varied agreed actions that people consider as ‘corporate social responsibility efforts’.

CSR can be good when purposed for the greater good, although there is an obvious contrast between companies building brand trust for sales and those incorporating business sustainability in their operations and doing the work of improving performance across environmental, social and economic indicators.

Society is comprised of employees, customers and community members, all reacting strongly to attempts at being green washed. And yet, many organisations are content to measure and report, rather than act to ensure better outcomes. Consumers have woken up to greenwashing, which is where statements on sustainability reports with fluffy and flimsy statements on efforts, achievements and goals, and usually full of self praise.

Sustainability: It is all about impact.

Business sustainability and corporate social responsibility cover the same three major areas of environment, society and economy, with sustainability focused on actions, like sustainable practice driving efficiency gains. For instance, turning off the lights when leaving work will reduce energy costs and reduce energy consumed. Who doesn’t want a better bottom line and reduced environmental impact?

In the past, CSR initiatives improved bottom lines with increased sales through building brand trust. This is still a fact, although now the expectation is that the actions and actual long-term benefits are reported.

Successful CSR initiatives must be associated with sustainability actions that have been successfully implemented and measured.

Short term

Take the example of ‘Clean Up Australia Day’ for staff to take part in. This is a fantastic opportunity to do good for the environment for a day, and can help improve brand reputation by being involved in a community event. It can also encourage staff to feel included in doing good.

Beyond that event, what long term impact has this CSR activity had on changing relationships with the environment? Did employees change their own habits, or did the company culture change in any measurable way? Now, don’t get us wrong, this is still a wonderful CSR activity to take part in for multiple reasons. Yet, it is a short-term impact-mitigation initiative, that may temporarily build brand trust.

Long term

Sustainability, unlike CSR, operates on long-term vision. A sustainability initiative would focus on the source of the waste. Perhaps develop a new, waste-free product, or change production processes to minimise waste. This would effectively reduce the impact with the subsequent sustainability report glowing with good news on the three pillars.
To clarify, ‘Clean Up Australia Day’ would be one of several  actions in a sustainability plan, which would be reported as a CSR initiative.

Consider Carlsberg, the beer manufacturer, who installed a water recycling plant on site. This action reduced water usage per hectare/L of beer from 2.9 to 1.4, becoming one of the first beer producers to almost eliminate their water wastage. This improved efficiencies, increased profits, delivered a healthier environment and happier society.
Carlsberg did not need to change  production processes, nor were they pressed for water supply. They recognised the multiple benefits of sustainability, with CSR embedded in their decision making.

Conclusion

Sustainability and corporate social responsibility are related, yet different. If sustainability is the Mother, CSR is a child.
GreenKPI provides a simple and systematic approach to business sustainability.

Act, Measure, Report, Repeat.