Will corporate social responsibility survive the bust?
(2 votes, average: 4.50 out of 5)
Loading ...The public demand for stories about the caring, sharing side of investment bankers is unlikely to be huge right now, writes Adam Jones in the Financial Times.
“But bankers aren’t necessarily the only turn-off in ‘caring capitalism’ ventures these days. I’ve been wondering for a while whether tougher economic conditions will lead to a broader backlash against the CSR industry on the grounds of cost.” Read more
Source: Financial Times
The industries related to CSR will survive, since many aspects such as environmental compliance are legally required.
Some elements may be economy-dependent, such as the importance of public perceptions of “reputation” in consumer decision-making.
But many of the driving motivations around a company’s reputation in terms of environmental and social issues will not necessarily dissipate.
I believe that a more likely scenario would be reduction in the in-house or internal departments dealing with CSR related issues, and an increase in external consultants, retained by companies on a contract or as-needed basis, to address specific issues or requirements.
One key effect of the present financial woes, is an increasingly widespread distrust in the transparency of business transactions. Is there any reason to believe that environmental and sustainability initiatives are any more transparent than financial transactions ?