The C-Suite's Social Responsibility

The phrase ‘social responsibility’ comes with some heavy lifting, especially in the corporate world. Often, the C-suite will tack on these obligations to the corporate social responsibility (CSR) team, leaving the assumption that the rest of the company is off the hook. However, there are layers of issues with this narrative. 

Unfortunately, these social initiatives don’t come with a low price tag. As of 2019, the global impact investing market has reached close to $505 billion — considerable, right? But it pales in comparison to the nearly $176 trillion that’s needed to address the UN’s 17 Sustainable Development Goals. 

Millions worldwide go to sleep hungry, hundreds of thousands of animal and plant species are at risk of extinction, and the global carbon footprint is colossal. Now, more than ever, the world desperately needs a helping hand to address these global challenges.

The CSR Team

Results from the 3rd Annual CSR Insights Survey show that most CSR teams don’t have the staff and budget to meet corporate stakeholders' and leadership's rising demands and expectations. 

Data also found that CSR teams need more than just funding and a seat at the budgeting table; a large percentage have recognized a need for more alignment between businesses and their social goals. They also identified a significant need for environmental, social, and governance expertise to help guide them. 

“The time is now for corporate leaders to replace words of support with impactful actions that remove barriers and challenges that hinder the full impact of corporate social responsibility,” said the CEO of ACCP.

Young CEOs: It’s Your Time To Shine

The good news is that the younger generation is taking matters into their own hands, recognizing the benefits of a properly funded CSR team that works hand-in-hand with top executives. As a result, they are not only bettering the world around them but also capitalizing on measurable company-wide returns, such as:

• Reduced waste and lower energy cost
• Positive brand recognition
• Risk mitigation
• Increased employee attraction, engagement, and retention
• Valuation premiums with investors

A YPO Survey found that up to 93% of executives believe it is their responsibility to positively impact society beyond just making a profit. In addition, their view of leadership over the past five years has changed by seeing the impact of their company on society at large, not just its shareholders.

CEOs & CSR Teams

For a company to reap the most benefit from adhering to its social responsibility programs, CSR teams must collaborate with CEOs under one common goal. Here are some tips to adequately integrate CSR into your organization. 

Determine Common Goal

A CSR program should have company-wide social goals and objectives. They should be mutually agreed upon and prioritized with stakeholders and employees for joint efforts. 

Evaluate Current Methods

A key initial step is to take a look inward. How are your current efforts holding up in today’s society? When was the last time your company’s CSR program was updated? 

Recognizing your strengths and weaknesses can help determine what needs changing and what’s doing well. Consider a B Impact Assessment to generate a “score” for your ESG initiatives and track your progress. 

Take Action

Action speaks louder than words. Create a plan of action, delegate responsibilities, and establish a timeline. 

While it may be tricky to assess the benefits of some CSR strategies because they can’t be financially tracked back to the business, determine a set of metrics to monitor your overall efforts. These can include:

• B Impact Assessment Score

• GRI Standards Report

• Greenhouse Gas Emissions & Carbon Offsets

• Energy/water usage and costs

• Monetary donations and volunteer hours

• Attrition rate

• Estimate social and environmental returns

Wrapping Up

A company’s social responsibility initiative paints an all-encompassing picture, one that highlights the importance of standing for the globe, its inhabitants, and those within your organization. Without these initiatives, a company’s mission is lost; and without a mission, what are you standing for? 

Read more here for our guide on Executive Strategies For C-Suite Retention