Corporate social responsibility is at the heart of the strategy

The world cannot sustain an endless pursuit of economic growth at the expense of our environment and human well-being. This has become clear to an increasing number of companies, not least with the recent publicationof the IPCC climate report. It’s no wonder that companies are taking an ever-greater interest in sustainability.

And why wouldn’t it be of interest? Numerous indicators show that the appeal of organizations that take society and the environment into account is growing, while the space for irresponsible entities is shrinking. More and more investors value responsible business practices, in part because responsible companies are managed with a long-term perspective and sound judgment. Employees, customers, investors, and lawmakers are increasingly interested in a company’s values and social responsibility.

Business practices aligned with the principles of sustainable development offer countless business opportunities. From a business perspective, it is essential that companies identify precisely those areas that are a) relevant to stakeholders and b) significant to their business.

RESPONSIBILITY DOES NOT EXIST IN ISOLATION

If sustainability efforts are separate from a company’s core business, they remain disconnected and fail to deliver the desired benefits from a business perspective. If, on the other hand, corporate responsibility is limited to marketing-driven campaigns, stakeholders will sense the insincerity, and the company will end up on the list of greenwashers.

For sustainability to become a strategic priority, it must be integrated into all aspects of management, including the agenda of top management. The board of directors and shareholders must understand what sustainability actually means in the industry in general and within the company in particular.

Corporate responsibility must be verified in a way that stakeholders find acceptable. In practice, almost every company will eventually need to identify metrics that track the actual impact of its corporate responsibility efforts.

I’m delighted to have noticed at T-Media that our specialized expertise in sustainability has been well received by leading companies in their respective industries. We never tire of talking about a topic that is close to our hearts. We’re happy to share our evidence-based methodology, which leverages the best management tools and frameworks.

FINALLY, A WORD OF WARNING

T-Media’s research data reveals a specific risk group among companies. Companies whose financial health is viewed as strong but whose reputation for corporate responsibility is faltering are particularly at risk. The danger is a reputational slump that undermines the very foundations of their business. Is it even possible to recover from such a slump?

Based on our experience, the answer is “yes,” provided there is a willingness to acknowledge the facts. After that, all that’s left is to take action.

The author is Sari Kuvaja, Director of Sustainability Services at T-Media.

I'd be happy to tell you more about the "Force Field of Responsibility " and our other services. Please feel free to get in touch!

Sari Kuvaja
MMM, Director of Sustainability Services
T-Media Relations Oy
sari.kuvaja(a)t-media.fi
040 528 2820