Properly reflecting companies’ commitment with sustainable and ethical behaviour is the main challenge of communication in relation to reputation and corporate responsibility. However, that Corporate Social Responsibility (CSR) has to go beyond the mere realization of ‘good deeds’ to become something strategic and integrated into the business.
Through accountability, companies are increasingly communicating the phenomenon of responsibility and ethics in business. This started to happen in the 90s when responsibility was not only concerning economic issues but social, environmental and labour issues within organizations.
This document was prepared by Corporate Excellence – Centre for Reputation Leadership and contains references, among other sources, to the statements made by Larry Parnell, associate Professor of the Graduate School of George Washington University (USA), during the session “New developments and trends in sustainable communication” held by Corporate Excellence, the school of Communication at the University of Navarra and EOI Business School in Madrid on September 19, 2012.
How to respond to CSR demands improving organizations communication
1. Insights
Strategy Documents
I33/2013
Public Affairs
How to respond to CSR
demands improving
organizations communication
Properly reflecting companies’ commitment with sustainable and ethical
behaviour is the main challenge of communication in relation to reputation and
corporate responsibility. However, that Corporate Social Responsibility (CSR)
has to go beyond the mere realization of ‘good deeds’ to become something
strategic and integrated into the business.
Through accountability, companies are increasingly
communicating the phenomenon of responsibility
and ethics in business. This started to happen in the
90s when responsibility was not only concerning
economic issues but social, environmental and
labour issues within organizations.
In the past years, this approach has prevailed, at
least with regard to large companies. This has led
to the need of improving the communication of
CSR, developing skills and preparing strategic
plans in order to introduce companies commitment
to society and stakeholders and thus to improve its
corporate reputation.
But CSR paradigm goes beyond the traditional
good deeds related to corporate philanthropy and
social performance. It makes way to longer-term,
comprehensive and strategic initiatives that have a clear
connection to the business, and also to the expectations,
needs and legitimate interests of stakeholders.
Voluntary commitment
According to Larry Parnell, associate professor of
the Graduate School of Political Management at
George Washington University (USA) and director
of its Strategic Public Relations Programme, CSR
is a free and voluntary commitment of companies
when making progress in a more responsible and
ethical behaviour in which profitability is seen in
economic and social terms.
In that sense, in the past years the idea of
CSR being something more than just financial
profitability, it is considered more than just
agreements with governments and NGOs. It is not
only the performance of national and international
legislation, but also the advance in standards and
behaviour guide that go beyond that frame and in
the direction of society real expectations.
In the traditional approach CSR was seen as an
obligation; a small part of the benefits had to be
This document was prepared by Corporate Excellence – Centre for Reputation Leadership and contains references, among other sources,
to the statements made by Larry Parnell, associate Professor of the Graduate School of George Washington University (USA), during
the session “New developments and trends in sustainable communication” held by Corporate Excellence, the school of Communication
at the University of Navarra and EOI Business School in Madrid on September 19, 2012.
2. How to respond
to CSR demands
improving
organizations
communication
shared in order to continue the business, leaving
behind important social issues for administrations
and entities. The current approach is making the CSR
something voluntary; shared valued must be created
by putting the business at the centre of the strategy,
engaging and working along with governments and
organizations for the social improvement.
‘Doing good and doing well’ accurately reflects the
idea of contribution and alignment with business,
the idea of increasing and not diminishing, the
idea of a generation of real and significant impact
in society, the idea of sharing value and principles,
the idea of strategic and long alliances pursuing the
common good.
‘The current
approach
is making
the CSR
voluntary;
shared valued
must be
created by
putting the
business at
the centre of
the strategy,
engaging
and working
along with
governments
and
organizations
for social
improvement’
Businesses sustainability is increasingly understood as
a key factor for the businesses themselves. Essential
elements are taken into account in order to enable
businesses sustainability; such as improvements in
manufacturing processes, which leads to a larger
product competition and customer satisfaction.
Likewise, improvements in education and community
training will ultimately benefit the company much
more than specific or permanent donations.
Reputation and CSR
A good corporate responsibility policy contributes
decisively to the reputation of a company, in fact, CSR
is the fastest growing dimension on the whole idea
of corporate reputation, along with innovation and
talent. Therefore, a good management contributes to
the final ability of attraction that has the reputation
in terms of talent, investment, sales, etc.
In a research conducted by the communication
consultancy firm Edelman in 2010, it was stated
that consumers expect business leaders to introduce
sense and purpose in everyday management, in their
usual activities and behaviours, since, otherwise,
the corporate reputation will be progressively
diminished and damaged.
However for CSR policy to contribute with the
reputation, it is necessary for CSR to be aligned with
reputation and reputation with corporative strategy
and business goals. This contributes to strengthen the
shield that means having a good reputation facing any
crisis, and also to increase the brand value.
A CSR correct strategy also goes through a process
of active listening and dialogue with stakeholders
and communities in order to define a framework
of stable relations. Firstly, relevant issues for both
parties are identified; and then, locally and globally
business tools and policies that create economic,
social and environmental value are established.
Long-term communication
That relation with strategy and reputation lead,
inevitably, to a communication approach that is
led by a long-term approach, also it is supported by
the improvement measurement and management
progress to justify the return of investment made in
every moment.
The way to arise a long-term communication
strategy, along with the responsible and sustainable
strategy, has to do with bonding achieving and
stakeholder commitment, to the extent that
precisely and rigorously accountability is made. But,
above all to the extent that dialogue, exchange,
transparency and participation of stakeholders in
the strategy and actions is encouraged.
Graph 1: A Framework of CSR Communication
CSR
communication
Message content
Initiavie
Contingency
factors
Stakeholder characteristics
Stakeholder types
Issue support
Commitment
Impact
Fit
Awareness
Attributions
Trust
Purchase, loyalty, advocacy
CSR report
Corporate website
PR
Advertising
Point of purchase
Media coverage
Word-of-mouth
Internal outcomes
External outcomes
Consumers
Message channel
Corporate
Independent
Communication
outcomes
Employees
Productivity, loyalty
Citizenship behavior,
advocacy
Company characteristics
Reputation
Industry
Investors
Amount of invested capital,
loyalty
Marketing strategies
Source: The Harvard Low School Forum, 2011.
Insights
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3. How to respond
to CSR demands
improving
organizations
communication
Therefore, collecting the company specific
commitments with every stakeholder in the form
of a ethic code supported by the company values,
rules, principles and performance criteria by which
relations will be regulated between the two of them
is the first essential part in order to achieve that
trust and commitment needed to last.
Target, channel and message definition is part of
any communication strategy. Regarding to CSR the
following aspects should be considered in order to
achieve a guaranteed success; the analysis has to be
based on the customers selection that have created
more demands and expectations, those targets who
have more ability to extend the responsible action
and corporate reputation –in this case, employees are a
fundamental part of the whole-. Also, when choosing
a channel, it is important that they can create
confidence, credibility and proximity-for example the
current on-line channels-; Furthermore, when sending
a message, they have to reflect the effective business
commitment with society and they should create the
biggest possible impact –for example, providing data
and figures instead of just launching ideas and words-.
‘The key for
a good CSR
communication
that is, without
question, a
major action
topic choice;
the choice of
a reputational
platform’
This continuous and permanent dialogue with
the stakeholders has to be added to the globally
key issues identification; they increasingly move
entities and activist movements in various fields,
and also they move actions being undertaken by
the company through the follow up by KPI (‘Key
Performance Indicators’) included in the scorecard
reflecting the created needs and expectations.
Only then a CSR communication strategy will be
effective and successful.
If there is a final key for a good CSR communication
that is, without question, a major action topic
choice. It is very important to identify a reputational
platform that has informative potential, internal
and external application, which is related to the
business, and in which stakeholders can participate.
Only in this way, it will be possible to project and
profitable, when referring to communication the
overall CSR strategy. But above all, it has to fit in
the general trajectory of the company and its brand,
making possible, in turn, connected stories that
relate the most aseptic and reporting information
with the most motivating and interesting actions.
Conclusion: challenges in a crisis
So far, CSR activities and
a progressive support from
and board administrations.
major form of human and
and higher budgets when
ambitious plans.
communication had
steering committees
This was seen as a
economic resources,
implementing more
However, because of the crisis, many organizations
and their CSR and Communication departments
are seeing reduced their programs. Budgets are
being cut, having to remove key activities for
the positive perception and effective business
contribution to society, paradoxically when they
are more needed.
For this reason, it is imperative to advance in the
standardization and implementation of decision tools
but at the same time, value accurate measurement
that brings strategic management to the business,
highlighting the benefits for companies.
Graph 2: Engaging with society through CSR communication
Students
Customers
NGOs and
NPOs
Symposiums
Local
community
Listening to feedback
from society
Going forward
with society
Listen to feedback from society,
and use it as reference in the
CSR management of the
Ajinomoto Group to
improve corporate
activities
Share global issues with society
and consider the contributions
the Ajinomoto Group can
make, what the group can
do through cooperating
with society, and what each
citizen can do for society
Media
Dialogue with
stakeholders
Communicating
with society
Communicate the
corporate activities of the
Ajinomoto Group by themes
relevant to stakeholders,
and further inform society
of the group’s initiatives
Business
partners
Event, sales
promotions
at stores,
advertisements
Experts
Shareholders
and investors
Source: Ajinomoto Group, 2012.
Insights
3