CSR Will Survive the Economy

As the economy continues to spiral, all over the news we hear companies desperately seeking to cut costs.  And, I think it would be safe to assume that the first place most companies would look to save money is in their Corporate Social Responsibility efforts.  After all, unfortunately the common view of CSR is still to donate money rather than include CSR into the core business strategy making it an integral part of the business practice. I am pleased, to report, however, that this is not the case for everyone.  Many strong leaders despite their economic woes are embracing their Corporate Social Responsibility.

In Surprising survivors: Corporate do-gooders found in Fast Magazine Jan. 20, 2009, Lawrence Delevingne explores how some companies are “sticking with the program” of CSR.  One company profiled is Intel.  While Intel’s stock has fallen and their fourth-quarter numbers were down, Intel is still devoted to their CSR initiatives.  In fact, the company recently launched the Small Things challenge, a $300,000 partnership initiative with non-profit groups Kiva.org and Save the Children.  Delevingne states, “That’s part of the company’s pledge to maintain its commitments in 2009, which includes $100 million for global education programs from the Intel Foundation ($1 billion has gone to the cause over the past decade) and such green investments as energy conservation efforts (a $20 million investment since 2001) and the purchase of 1.3 billion kilowatt hours of renewable-energy certificates.”

Delevingen quotes Intel chairman Craig Barrett: “You can’t save your way out of recession – you have to invest your way out.  We look at our CSR activities in pretty much the same way: you can’t just do them in good times and then just forget about them in bad times and hope to get any results.”  What great words of wisdom.

Another company highlighted in Fortune’s article that is devoted to its CSR strategy is Starbucks.  Even though Starbuck’s stock lost more than half its value in 2008, leading to more than $400 billion in cost reductions, their corporate responsibility remains as strong as ever.  Delevingne refers to a recent article in Huffington Post by Howard Schultz, CEO of Starbucks, titled Yes Business Can in which Schultz makes a strong and passionate case for Corporate Social Responsibility especially in today’s economy. Delevingne quotes Schultz, “Short-term thinking in a recession can lead to the ‘false belief that investments in people and training can wait; that corporate social responsibility can be put on the back burner…Now is a time to invest, truly and authentically, in our people, in our corporate responsibility and in our communities. The argument – and opportunity – for companies to do this has never been more compelling.’”

Will Marré, CEO of REALeadership Alliance, couldn’t agree more.  In his recent article, “Good First,” Marré 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.  Just imagine.”

Marré goes on to discuss the concept from his book, Save the World and Still be Home for Dinner, he calls Good, Grow, Gain.  He states, “The Good, Grow, Gain model simply means that we think first of how much good we can do, knowing that the more real value we offer the world, the more we will responsibly grow our opportunities and gain the resources for everything we truly need.”  Marré believes that the best way out of the current economic state is also the way up.  Seeking ways in which companies can do good will drive new growth based on real value creation, and that will be rewarded in the marketplace.  He concludes, “In tough, tough times when the winds of fear howl and the smog of distrust fills our lungs, the world calls for people who are willing to transcend their fears and seek good first. By putting giving value first, we truly gain more than we ever thought possible.  That’s how the world will change.”

In CSR in an Economic Dip CSR Digest discusses how sticking to CSR strategies is a no-brainer during these economic times if one’s CSR is truly based on how profits are made.  The article quotes Dan Gray’s blog, Can CSR survive a recession? stating, “Companies that pull back from CR are liable to label their activities as opportunistic, rather than an integral part of a considered, long-term strategy.”  CSR Digest also refers to several benefits of CSR as to why companies should remain strongly devoted to CSR efforts such as reputation; transparency—and integrity—are still important; recessions don’t last forever; and communities feel vulnerable.

Christopher Flavelle in Responsibility Is Still Good For Business quotes Geoffrey Heal, a professor at Columbia Business School: “”Since the concept of CSR became popular, there’s never been a recession like the one we’re going into right now. Profits are going to be very hard to come by for many corporations. If they see CSR as contributing to their bottom line, they’ll continue to act responsibly. If they see CSR as a kind of a PR campaign, they’ll probably cut back on it.”

Yes, it is easy to get caught up in the constant turmoil and negative messages we are bombarded with everyday and think only of the bottom line.  But there is good news.  Strong leaders are not running with their tail between their knees, only willing to do good when doing good is easy.  They are embracing their social responsibilities, and this will make all the difference.