It’s something of a paradox that the same 10-year period that left capitalism standing accused of gross excesses and poor ethical standards, also saw a significant increase in and a cementing of corporate social responsibility.
Most often referred to by its acronym of CSR, the practice is a form of business self-regulation. At its best it aims to consider the impact a business has on its environment and various stakeholders – such as consumers, employees, local communities and matters concerning the health of the planet – and takes appropriate steps to ameliorate damage caused.
While CSR draws criticism ranging from it being a superficial PR exercise to a distraction from the core economic purpose of business, there are too many cases of CSR fully integrated into business models for the notion to be easily written off.
Many business leaders are keen to make a difference through social enterprise or ethical business practices
Some companies, such as Marks & Spencer with its Plan-A initiative, create their own CSR path. Many others engage wholeheartedly with well-regarded standards applicable to their industry, such as SA8000, the Forest Stewardship Council, Fair Trade and the Rainforest Alliance.
Many business leaders are keen to make a difference through social enterprise or ethical business practices, but they face numerous questions:
- How can you do what you are passionate about and make it successful?
- What if you have little or no funding or support?
- How do you face the fear of recrimination?
- How can you afford to improve your ethics and still afford to pay the bills?
- In a larger corporate organisation, how can you get involved?
- Can SMEs manage the costs and time of engaging in CSR?
- What does it cost and are there ancillary benefits to the business and the bottom line?
If you’ve asked yourself these or similar questions, perhaps you’d like to hear Camila Batmanghelidjh, one of the UK’s leading social entrepreneurs, talk to business leaders at the Institute of Directors on 18 October.
Recognised in the media for her vivid dress, Camila is credited with turning round the lives of thousands of vulnerable children in South London. She founded her first charity in her early twenties on a shoe-string and went on to found Kids Company in 1996 with a £20,000 grant. Her organisation has helped thousands of children, and over the years has secured over £50m in funding.
Few of us are likely to come close to her astonishing achievements, but we can all learn lessons from her experiences as a leader in her field and apply them to our own businesses and CSR practices.
If you would like to know more about the event, please click here.
James Ollerenshaw sit on the committee of the London branch of the Institute of Directors, is chair of its Young Directors’ Forum and is managing director of Curzon PR.
Any views expressed in this article are those of the writer and do not necessarily reflect the views or policy of the Institute of Directors
