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CSR - Thank goodness for the Credit Crunch - Aby Farsoun, Grayling
INSIGHT ARTICLE
Aby Farsoun is a consultant
at Grayling.
Environmental issues are rarely out of the news these days with more and more people rapidly becoming aware of the role we each play in using (and sometimes abusing), the planet's resources. Accepting this ethical imperative means we expect businesses to uphold these principles too.
But in these credit-crunching times, with the world financial markets in turmoil, some companies feeling the squeeze may choose to ignore their CSR programmes. While other more serious organisations may not. If a company has developed its CSR to the point where it is engrained into the purpose of the business, it is unlikely that it will be cut out, no matter the economic climate.
However, in this rush to develop a CSR policy, some corporations are jumping on the bandwagon to claim ‘greenness'. From introducing schemes to reduce greenhouse gas emissions, to opening wind-turbine-powered branches*, businesses worldwide are scrambling to be seen as socially responsible.
Enter the phenomenon of Greenwashing. It has been around for longer than we might think, but is only now being seen in such overt ways. Greenwashing is the unjustified claim by an organisation, government or individual to create a pro-environmental image in order to sell products, services or policies. This increase of greenwashing has caused great concern and triggered Trimedia International CSR's division head James Wright, to lead a UK steering group to produce Environment Sustainability Guidelines for communication, which was issued by the Chartered Institute of Public Relations in March 2008.
Several methods can be used to identify greenwashing:
1/ 3rd party cover - Hiding anti-environmental actions by possibly using industry associates to carry out such activities for them.
2/ Paper trails - Submissions or requests made which indicate where companies are seeking to develop activity and whether environmental consequences have been taken into account.
3/ Consistency - Operating standards differ worldwide. Companies should be consistent in policies in other countries it operates in.
4/ Long term focus - Organisations will occasionally launch an initiative simply to create a fuss and gain media attention and then starve it of financial support needed to progress it.
In a fast moving area of business, with less opportunity to Greenwash and get away with it, companies are going to have to incorporate it into the fabric of their business. Auditing firms and accountancy companies are beginning to attribute merit to companies who have implemented CSR policies, as an indication that they are thinking long term, trying to operate efficiently, sourcing sustainable materials etc. Conducting business ethically remains crucial in an environment where organisations are increasingly being measured on their CSR.
The resulting trend may be that we are likely to see companies emerge who have used this financial crisis to their advantage and consequently, have sought to adopt CSR strategies as a means of managing risk. Ironically, the global financial crisis might be the best thing that's happened to CSR.
Executive Summary
When it comes to influencing purchase decisions, online advocacy carries the most influence of all communications channels.
Young European consumers are more influenced by the traditional media than their older counterparts.
Over half of European consumers under the age of 35 expressed a desire to interact with brands via social networks.
Newspapers and magazines are more influential to French and UK consumers than those in other European markets.
Advertising is cited as having the least influence on Europeans' purchase decisions.
Many European consumers do not wholly accept what they read online until they have checked the facts in mainstream, traditional media.
INLINE Profiles are consistent across all European markets.
Environmental issues are rarely out of the news these days with more and more people rapidly becoming aware of the role we each play in using (and sometimes abusing), the planet's resources. Accepting this ethical imperative means we expect businesses to uphold these principles too.
But in these credit-crunching times, with the world financial markets in turmoil, some companies feeling the squeeze may choose to ignore their CSR programmes. While other more serious organisations may not. If a company has developed its CSR to the point where it is engrained into the purpose of the business, it is unlikely that it will be cut out, no matter the economic climate.
However, in this rush to develop a CSR policy, some corporations are jumping on the bandwagon to claim ‘greenness'. From introducing schemes to reduce greenhouse gas emissions, to opening wind-turbine-powered branches*, businesses worldwide are scrambling to be seen as socially responsible.
Enter the phenomenon of Greenwashing. It has been around for longer than we might think, but is only now being seen in such overt ways. Greenwashing is the unjustified claim by an organisation, government or individual to create a pro-environmental image in order to sell products, services or policies. This increase of greenwashing has caused great concern and triggered Trimedia International CSR's division head James Wright, to lead a UK steering group to produce Environment Sustainability Guidelines for communication, which was issued by the Chartered Institute of Public Relations in March 2008.
Several methods can be used to identify greenwashing:
1/ 3rd party cover - Hiding anti-environmental actions by possibly using industry associates to carry out such activities for them.
2/ Paper trails - Submissions or requests made which indicate where companies are seeking to develop activity and whether environmental consequences have been taken into account.
3/ Consistency - Operating standards differ worldwide. Companies should be consistent in policies in other countries it operates in.
4/ Long term focus - Organisations will occasionally launch an initiative simply to create a fuss and gain media attention and then starve it of financial support needed to progress it.
In a fast moving area of business, with less opportunity to Greenwash and get away with it, companies are going to have to incorporate it into the fabric of their business. Auditing firms and accountancy companies are beginning to attribute merit to companies who have implemented CSR policies, as an indication that they are thinking long term, trying to operate efficiently, sourcing sustainable materials etc. Conducting business ethically remains crucial in an environment where organisations are increasingly being measured on their CSR.
The resulting trend may be that we are likely to see companies emerge who have used this financial crisis to their advantage and consequently, have sought to adopt CSR strategies as a means of managing risk. Ironically, the global financial crisis might be the best thing that's happened to CSR.
Executive Summary
When it comes to influencing purchase decisions, online advocacy carries the most influence of all communications channels.
Young European consumers are more influenced by the traditional media than their older counterparts.
Over half of European consumers under the age of 35 expressed a desire to interact with brands via social networks.
Newspapers and magazines are more influential to French and UK consumers than those in other European markets.
Advertising is cited as having the least influence on Europeans' purchase decisions.
Many European consumers do not wholly accept what they read online until they have checked the facts in mainstream, traditional media.
INLINE Profiles are consistent across all European markets.
