Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

ESGHR strategyOpinion

Corporate social responsibility is not just a nice add-on in tough times

by Personnel Today 26 Nov 2008
by Personnel Today 26 Nov 2008

Research by Business in the Community revealed that FTSE companies that actively managed and measured corporate social responsibility (CSR) issues outperformed peers on total shareholder return by between 3.3% and 7.7% throughout the period 2002-2007.

So I was alarmed to hear at a recent meeting of senior business leaders that almost half were re-considering their CSR strategies, despite having invested considerably in this area in recent years. It seems that just as the business case for corporate responsibility gains widespread endorsement, it is being challenged to prove itself once again.

Knee-jerk reaction

As we face up to the greatest economic crisis since the 1929 Wall Street Crash, the knee-jerk reaction is to abandon business functions that are seen as a ‘luxury’. Forward-thinking schemes to up-skill staff or encourage diversity in the workplace are suddenly considered as nice add-ons.

It is not ‘nice’ to have a diverse workforce, it makes business sense to have an employee profile that reflects and therefore understands your customers. It is not ‘nice’ to have a skilled workforce – it will be the driving force of your business. It is not ‘nice’ to introduce health and wellbeing schemes, it will increase the productivity and effectiveness of your staff.

The pressing danger is that those companies that silently abandon previously high-profile schemes will not be able to pick-up where they left off, thereby setting the CSR agenda back years. A hiatus in commitment sends a clear message to all stakeholders that it was just hot air and not central to core business strategy. Once this credibility has been lost with employees, customers or shareholders, it will be near impossible to regain and cause lasting damage to the business.

The organisations that have taken the right approach to CSR are the most likely to remain committed, because they can see the cost benefit. If anything, recent events demonstrate that being responsible is more important than ever. Responsible businesses have confidence in the products and services they are buying or selling, internal controls are in place to reduce risk and maximise opportunity, and the business will be focused on long-term success (economic, social and environmental) rather than just short-term returns.

Ultimately, corporate responsibility can contribute to improving and sustaining financial performance. There is a real value for businesses in developing their people, trading responsibly, protecting the environment and working in partnership with their local communities. Being a great employer has so many business benefits from creating loyalty in the community in which you operate, to ensuring you recruit and retain the best talent.

Strength of character

Managing a business through a downturn is about people the forward-thinking leaders demonstrating strength of character and inspiring confidence, and the employees whose commitment, productivity and skills gain competitive advantage.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Investing in people is the best investment a business can make in challenging times and building new skills will put business in a strong position as the economy recovers. As we increasingly become an economy built on talent, it is vital to push for investment in the talent needed to compete in a globalised economy.

CSR policies have to be realistic, robust and relevant. If they are not, they simply won’t stand-up in the economic downturn. I truly hope that businesses see sense and those executives heading up various projects stand firm against pressure to slash their budgets.

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
Case of the week: Pragmatic approach to grievance complaints
next post
Pay cut misery for millions predicted as recession goes global

You may also like

Personnel Today Awards 2025 shortlist: HR team of...

16 Sep 2025

How to steer EDI through a ‘permacrisis’

12 Sep 2025

Bigger budgets, but greater scrutiny – welcome to...

9 Sep 2025

Personnel Today Awards 2025 shortlist: HR director of...

9 Sep 2025

How to manage workplace investigations effectively

5 Sep 2025

Agency crackdown won’t cure NHS staffing crisis alone

5 Sep 2025

Personnel Today Awards 2025 shortlist: Workplace culture (larger...

28 Aug 2025

Return to office: the looming battle over where...

11 Aug 2025

Why LGBTQ+ is not one big, happy acronym

25 Jul 2025

Early careers: Three ways to empower tomorrow’s workforce

22 Jul 2025

  • Workplace health benefits need to be simplified SPONSORED | Long-term sickness...Read more
  • Work smart – stay well: Avoid unnecessary pain with centred ergonomics SPONSORED | If you often notice...Read more
  • Elevate your L&D strategy at the World of Learning 2025 SPONSORED | This October...Read more
  • How to employ a global workforce from the UK (webinar) WEBINAR | With an unpredictable...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits Live
Employee Benefits
Forum for Expatriate Management
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise