As the global pandemic continues, many companies are rethinking how they do business in a world that expects more than yesterday’s “doing well by doing good” Corporate Social Responsibility campaigns. In every community, the local economic, health and social impacts are in flux and no matter the corporation’s size or location; a company is a part of that community.
Expressing this sentiment, former Unilever CEO Paul Polman has said, “We can no longer pretend that business is immune from the rising tide of environmental or social challenges or that companies can create value in isolation from the communities of which they are a part.”
Many companies are reevaluating their CSR strategies, keeping internal and external stakeholders in mind: customers, employees and society overall. The following are some examples that illustrate the need for effective CSR efforts and what some companies are doing to address this need.
CSR and Consumers
In today’s climate, CSR is not just another company policy or trite statement on a website. Customers are demanding authenticity and transparency from companies, as well as desiring ethical alignment to their values. Research shows that consumers are looking for proof of specific actions a company is taking to make the world a better place.
For example, the Deloitte Global 2021 Millennial and Gen Z Survey reports, “The number of millennials who believe that business has a positive impact on society was 47%, marking the first time that figure has dipped below 50%. It was 76% in 2017. Like millennials, fewer than half of Gen Z’s see business as a force for good in society. Still, the underlying data suggests that negative feelings toward business may be turning a corner.”
Fortune 500 companies, like JPMorgan Chase & CO, are rising to the challenge. In October 2020, JPMorgan Chase announced a new long-term commitment to advance racial equity to the tune of $30 billion. Over the next five years, the company will “provide economic opportunity to underserved communities, especially the Black and Latinx communities.”
CSR and Employees:
The current health crisis, political strife and social unrest have forced many companies to take a public stand for what guiding principles and fundamental beliefs they may hold. The ongoing pandemic has provided an opportunity for corporations to actively engage with their employees in the areas that personally affect them, such as workplace safety, physical and mental health and diversity issues.
Regarding diversity and inclusion, the Deloitte Global 2021 Millennial and Gen Z Survey highlighted that “People’s ethnicity or race are the most common cited causes for discrimination, but there are multiple reasons that also include socioeconomic status, physical or mental disability, sexual orientation, gender identification, and sex. Among those who identify as ethnic minorities, 36% of millennials and 39% of Gen Z’s said they are discriminated against ‘all the time’ or frequently in the workplace. Roughly three in 10 who identify as homosexual, gay, lesbian, or bisexual concur.”
One company focused on inclusion and diversity at all levels of business is Campbell’s, which offers 10 employee resources groups that are open to all employees companywide. In June, during Pride Month, the company’s OPEN (Our Pride Employee Network) chose three non-profits to make an impact in the places where employees live and work. The Campbell Soup Foundation matched all employee donations to the OPEN Social Justice Fund.
CSR and the Community:
This past year highlighted healthcare disparities, increased food insecurity, record-level unemployment and racial equity injustice. To address these challenges, the critical partnerships between companies, their employees and the larger community are helping to change corporations from the inside out.
For Ben & Jerry’s, silence was not an option to the George Floyd tragedy in May 2020. In early June, the Vermont-based ice cream company released an impassioned public statement in response. According to Muck Rack’s “8 brands making a difference with corporate social responsibility efforts” article, after releasing the statement, “Ben & Jerry’s sales surged well ahead of its competitors in the ice cream category. Other companies publicly declared solidarity with the Black community, but Ben & Jerry’s message resonated with consumers because it already had credibility as a brand that stands for justice, equity, diversity and inclusion.”
The core of a successful CSR strategy today is to put stakeholders — both internal and external — at the center of these efforts regardless of changes in the business environment. Research shows that socially responsible companies instinctively know they must interact with all stakeholders because the importance of these interactions becomes apparent, especially during challenging times.
The Deloitte Global 2021 Millennial and Gen Z Survey Provides Insights To A Collective Worldview
Learn more about how Millennials and Gen Z’s are channeling their energies into holding themselves and others accountable in The Deloitte Global 2021 Millennial and Gen Z Survey. This year’s report delves deeply into how 2020 affected these generations’ day-to-day lives, their mental health and their collective worldview.
Carla Vargas Jasa is the president and chief executive officer of Valley of the Sun United Way in Phoenix, which serves the more than 4.3 million people of Maricopa County and is among the largest United Way in the nation.
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