What really drives value in corporate responsibility?

Posted: 03/02/2012 in PR & Ads, Strategy, Technology
Tags: , ,

Few companies are clear about how investing in social initiatives will change stakeholder behavior or the harm a bad strategy can cause.


Now that stakeholders—including consumers, investors, and employees—pay increasing attention to the social and environmental footprints of business, corporate-responsibility efforts have moved into uncharted management territory.

What I see companies reengineering supply chains to make them “greener,” supporting social causes through volunteer programs for employees, or lobbying for human rights in far-flung corners of the globe. I cant stop myself thinking what if consumers, investors,stakeholders do not push companies to change their strategy. Will they become such a ‘ green’ responsible profit makers, or really care about suistanable development for their future ! According to McKinsey research :

As this tide swells, many executives are left with the nagging sense that such investments rest on a shaky understanding of how corporate responsibility creates value, both for their companies and for society. Some investments, of course, produce immediate and quantifiable gains, such as those from recycling or from manufacturing processes that save energy. But often, social investments are expected to yield longer-term benefits as engaged consumers step up their purchases, a broader investor base develops, or new talent flocks to a company’s recruiters.


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