CORPORATE SOCIAL RESPONSIBILITY IN CURRENT CRISES
The idea that business should benefit its community has roots in North America, dating back to before 1800.
Self-regulation and awareness of social impact was a legal consideration until 1819, when a Supreme Court ruling demoted corporate social responsibility to a voluntary level. Yet awareness of the environmental and social impact an organisation has on its chosen target market is still regarded as a pull factor by potential consumers and investors, and promotes good business practice by the corporation.
This accountability in business has recently been acknowledged by the Reputation Institute, which has announced its top companies for global perception of CSR.
Brad Hecht, chief research officer at Reputation Institute, says “The companies in the Global CSR RepTrak® 100 are succeeding not only at being good corporate citizens, but in communicating those characteristics to consumers who increasingly rely on a brand’s reputation in making purchasing decisions and recommending products and services to others.”
Among the top ten companies identified as achieving exemplary CSR was Google, who maintained a lead over the other nine companies and topped the Global CSR RepTrak® 100 rankings for the second year in a row. Google are well-renowned for their commitment to charitable causes, with one of its most successful being the ‘Google Green’ initiative to encourage efficient resource use and increase renewable power within the corporation. Now, its data centres are run with 50% less energy than average.
Google have also made efforts to alleviate the current refugee crisis across Europe through the launch of a campaign matching user donations with a monetary sum. As of 15 September, the company pledged to match a financial donation of up to $5m; with that target already surpassed, their new aim is to raise $11m. Donations will be split between Doctors Without Borders, International Rescue Committee, Save the Children and the UN High Commissioner for Refugees. Rita Masoud, product marketing manager at Google, says, “These nonprofits are helping deliver essential assistance—including shelter, food and water, and medical care—and looking after the security and rights of people in need.”
Another company who continue to build on their history of CSR is The Walt Disney Company, who feature third on the Reputation Institute Global CSR RepTrak® 100 rankings.
The Walt Disney Company have a core focus on the environment, with achievements such as 3m trees planted in Brazil’s Atlantic forest and the protection of 40,000 coral reefs in the Bahamas. Climate change is becoming increasingly pervasive in the global imagination, and, as such, has become a key focus of Disney’s environmental strategy. The devastating consequences of higher frequency weather events have seen the corporation respond from a social perspective, donating $2m in relief to those affected by Hurricane Sandy in 2012.
The importance of integrating citizenship into business models is still as resonant now as it was in 19th century North America. With current global crisis news being disseminated more widely than ever, companies are taking active steps to make their CSR more visible.