Authentic not cosmetic: CSR as brand enhancement

Abstract

With question marks hanging over the reputational value of the chief executive officer (CEO) after several high-profile governance failures — such as Worldcom and Enron — and with financial success depressed by the global downturn, corporate social responsibility (CSR) is taking centre stage to provide a more sustainable, long-term brand value. Corporate responsibility has become a differentiator and licence to operate, not only for industries with conventionally higher risk exposure — energy, utilities, heavy manufacturing — but for all sectors. This paper draws on findings from the Giving Back study. These findings include the extent to which CSR is rising in prominence in terms of world events with CSR implications, the impact on perceptions of CSR from the external news events, and the status of ethical investment funds given the continued downward spiral of equities and stock markets in 2002. This paper describes elements in the successful implementation of CSR as perceived by interviewees, among them championship from senior management, achieving company-wide ownership, and synergy with core business activities. Aspects of CSR relating to communications are at the heart of the Giving Back research. The importance of having a credible programme in place is emphasised, as are credible public relations and reputation management approaches. The views of corporate decision makers on the media's role in CSR are discussed, including the media's roles and responsibilities.