CSR Will Still Survive the Economy

This past February in my post, CSR Will Survive the Economy, I make a case for CSR initiatives still having a bright future despite the economic downturn.  But as the recession continues and companies struggle through recovery, it makes me wonder…Just how long will the triple bottom line prevail when profit is at the front of everybody’s mind?

In Bonus Rage and its Pitfalls John Robertson discusses how new restrictions for top executives has a downside, social responsibility initiatives in particular taking a big hit.  He contends that in order for companies to operate under the triple bottom line of people, planet, profit, executives need the freedom to exercise judgment.  He states, “If companies were to be more than simply cash registers, executives had to be empowered to make choices. Directors needed to decide how the value being created should be divided up: how much to employees, how much to suppliers, how much to shareholders, how much to deserving community organizations and at what cost to the physical environments in which the company operates.”  He continues, “Unfortunately, this is precisely the discretion being stripped from the repertoire of the modern corporate executive as he is forced to make an unequivocal commitment to financial success.”

Robertson also contends that this won’t get better any time soon with governments looking to maximize the financial returns from their recent equity purchases, executives trying to repay loans as quickly as possible, and employees too scared of losing their job to demand better from their employer.

While Robertson makes a convincing argument, I believe that it’s only an excuse, a reason for leadership to free themselves of any obligation to humanity and the environment.  You see, this viewpoint stems from the idea of corporate social responsibility being solely a cost, rather than an integral, revenue building part of the business model.  Companies and leaders alike that still hold to the belief that CSR is merely writing a check will most likely cut back or quit their CSR practices altogether in the name of financial strife.

On the other hand, however, there are others who will strongly embrace the great opportunities social responsibility presents and come out stronger on the other side of this recession. Will Marré, CEO of REALeadership Alliance, states, “When times are tough it’s hard not to be hijacked by fear. Thinking about how much good we can do becomes downright unnatural when we’re genuinely afraid we won’t have what we need.  But what if we turn that fear upside down?  Imagine that the key to security, prosperity, and happiness comes from doing good.  As much good as possible.”  According to Marré, now is the time to invest in social responsibility.  In fact, he contends that saving the world is the greatest economic opportunity of our time.

I do indeed stand by my original posting…CSR will survive the economy.  We cannot allow our values to be turned on and off depending on the weather of the current situation.  The triple bottom line is a way of doing business, not a fad that has run its course.