CSR - A Two Sided Coin

In an article written by Konrad Yakabuski entitled, The Kindness of Corporations in today's Globe and Mail, he shares his opinion of how CSR is not only about companies doing good.  My initial response was, well of course.  A company's key responsibility is to its shareholders.  The main purpose of a corporation is to generate revenue thereby giving a return on investment to those who have supported it financially.

 (Photo provided by: williamcho)

So how has CSR become so important over the past few years?  Is it the Al Gore effect?  This is what I think.  I think there is a value shift occurring in North America.  This value shift is playing out in the collective consumer consciousness.  Shareholders of corporations are part of that collective value shift so they are demanding changes in the boardroom.  Employees are part of that value shift and are looking for a more meaningful experience (the next promotion is not enough and nor is the pay).  I believe that consumers/clients of the corporation are the ones that are pushing the shift from the grassroots (see the book Mid-Course Correction by Ray Anderson).  And we cannot forget the vendors who are also part of the equation as their companies are going through the same pressure changes as the ones to whom they supply.

So what is happening with the charities in all this?  And the social enterprises that are seeking venture capital? How is government policy being affected by the corporate social responsibility movement?  I think that as a result of the CSR concept there are truer partnerships between charities and businesses.  Charities are using their corporate partners to help lobby government for social and environmental change (in Canada, charities are limited in the way and amount of lobbying they can do).  Businesses are using charities as a way to identify new markets, not just to "clean-up an image" or make face-time for a cause.  Government is rarely the leader of change.  They react to the voting public.  Policies are set because there is an undercurrent that is driving the policy.  It is somewhat oxymoronic to call government members leaders - they really follow in the grand scheme of things.  But that is neither here nor there.

Social enterprises are at an even greater advantage in today's market.  As the values of investors shift from simply looking for the next Oracle, these social enterprises can not only show how they are going to have a financial return on investment, they can also show that at the core of their business is community interests.  The direction that the business sector is shifting is one that CSR is not going to be an add on once the company is making money, but it will be an intrinsic part of developing a business plan.