Considering the business opportunities within CR programs
Tuesday, October 18, 2005
Considering the business opportunities within CR programs
Although more companies are talking about CR, many still see it as something they must do to satisfy stakeholders, who we know often don't have profit-making in mind. Too often, CR and sustainability are still treated as a “bolt-on” to business operations rather than being built in to business purpose and strategy.
David Grayson, author of “Corporate Social Opportunities” says the terminology of corporate social responsibility suggests burden, outlay and obligation, but more emphasis should be given to the opportunity that can come from a genuine commitment to sustainability and CR - the opportunity to find new products and services, new markets, and new business models.
Here are three methods and examples of organizations gaining from CR and sustainability programs.
1. New products: Think creatively - investment in CR and sustainability programs will likely lead to new product lines developed with these attributes. For example, Mexico-based Cemex is the third largest cement company in the world. Creative thinking has led the company to invent a concrete mix with an added anti-bacterial agent that, when used for flooring in low-cost housing projects provides built in health protection. When used in hospitals and clinics, the treated concrete not only helps kill germs but also means less expensive (and potentially less polluting) cleaning agents can be used.
2. Get ahead of competitors: Aligning your company with sustainable programs can improve its global standing and put it ahead of competitors. Vodafone, the largest mobile communications company in the world, has recently established a whole new product and marketing department to explore products that have both commercial and social benefit. Vodafone's use of a sustainability program saw the organization reach third place in the 2005 Accountability Rating®, a corporate accountability rating of FORTUNE Global 100® companies, which was recently announced by international think-tank AccountAbility and consultancy CSR Network. The rating scores companies on how seriously their future decisions will consider social and environmental issues. Vodafone were only behind oil companies BP and Royal Dutch Shell.
3. Gain insight beyond the usual corporate domains: Working with non-profit organizations and other NGOs can prove a valuable source of insight and capacity that can produce commercially viable products and services which also meet social and environmental goals. Scope, the charity that helps sufferers of cerebral palsy, has just launched its latest charity-business program called “Diversity Works” which involves partnering with a number of businesses including BT, KPMG and Lehman Bros. Diversity Works aims to develop and deploy learning amongst the partners involved on how to find, recruit, train and support the development of young disabled Britons with leadership potential. Business partners benefit by getting help to attract and retain a wider pool of talent.
Adapted from “From responsibility to opportunity” by David Grayson in the current issue of Corporate Responsibility Management. T
Blogged on 4:00 PM by Upay
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