CSR: a new business trend (?)

These days if we look at the website of any big company we are very likely to see that they have a section called Corporate Social Responsibility, Sustainability, Responsibility, Environment and Society, Our Mission or something that tells us what the company is doing for the environment or the community. That is what CSR is all about. 

There are many definitions of what Corporate Social Responsibility is but the main idea is that CSR is the way a company develops its activity by producing a positive impact on society and the environment.

Companies are being aware that by developing CSR activities they will have higher profits in the long-term and that is why now they are incorporating these activities as part of their strategy. CSR is, however, not solely owned by Public Relations, departments such as human resources as well as the business development department may also be involved. 

Some of the benefits of incorporating CSR to the company's business activity can be: 

- Higher appeal for job seekers and also higher engagement by employees through fundraising activities and volunteering. 

- Strong reputation and corporate image among all stakeholders.

- Brand differentiation by showing different ethical values.

- Customer loyalty

However, many people also claim that CSR:

- does not always fit with the nature of the business and that, thus, it is in-congruent to develop these activities.

- is simply a way of green-washing a company's image

Companies are increasingly becoming more social responsible because their stakeholders are more concerned about social and environmental issues. By doing so, it is very important that the company understands the issues that concern its stakeholders and see how the company could do to cooperate with that cause. 

However, just because a company's most important stakeholders believe in that cause does not mean that the company should undertake that activity with the only purpose of satisfying them and ultimately having higher profits. Just when a company behaves ethically, feels represented and represents the cause and it fits into its values and business operation; is CSR going to benefit the company and enhance its reputation. Otherwise, despite the fact of being social responsible, a company can be subject to criticisms that in the end can produce more negative effects.

On the whole, a company should just develop CSR activities that fit into the company's values and just if the whole company feels commited to the cause and has made sure that these activities will benefit society and/or the environment. What is your opinion on CSR?

I found this link to a website where there is information about many company's CSR involvement. PROs can post news about their company's CSR activities to inform its stakeholders. http://www.csrwire.com/

Stakeholders and PR

Knowing the audience of your organisation is very important as it helps to define the company's strategy. For PR practitioners it is essential to define the company's stakeholders in order to convey the right message.

There is different terminology used in PR books to name those who can affect or be affected by the activity and actions of a business. Different terms are used audience (which seems to have fallen into misuse), stakeholders and publics.

One of the most important theorists in Public Relations, Grunig, defines a stakeholder as someone who has an interest in an organisation. In his opinion publics have a stronger interest in the organisation and are more active than stakeholders. In his situational theory he differenciates between different types of publics. The non-publics are those groups that are not very affected by the company. The latent public is someone who might have an interest in the organisation; then there is the aware public who, appart from having some interest in the company, also know the company. And finally, the active public are those people who can affect the company. Grunig describes the different types of publics in his situational theory, which in contrast with other theories is not static and claims that relationships can change.

Power-interest matrix

Another important stakeholder theory is the power-interest matrix. It does not define stakeholders; they must be defined by the organisation and, because relationships between a company and its stakeholders can also change, they have to be monitored continously. This theory divides groups by power and interest rates and explains how the company should deal with them depending on their power and interest.

There are many theories on stakeholders such as Bernstein's Wheel and Esman's linkages theory. However, Grunig's situational theory and the power-interest matrix theory are the ones that most fit with the current PR practice.