Reactions to CSR- Does Anyone Care?
Stakeholder Disinterest in Corporate Social Responsibility
Sep 27, 2009
Poll results indicate that whilst two thirds of the public believe businesses should invest more in social responsibility, only 10% are ‘very interested’ in being informed about this work (Ipsos MORI, cited Lewis 2006). The level of recognition for investment in CSR afforded to companies differs dramatically and this is recognised by the companies themselves. Vodafone is one organisation which feels that their CSR initiatives are not as recognised as those of Tesco or BT (Lewis 2006).
Stakeholder Interests
Stakeholders share some common interests, e.g. the success or otherwise of the organisation, but each group will also have differing interests, which may be very exact. For example, environmentalists and investors will have different initial thoughts on hearing about a company’s planned expansion. One will consider the possible harm of new developments, the other, the potential financial gains that could be generated.
Shareholders are a stakeholder group that is frequently seen as having a very specific and singular interest: an increase in profits. However Mackey et al (2007) have argued for the fact that they will be interested in other factors at the time of investing, and that a high profile CSR policy can represent another ‘product’ marketed by the firm to its current and potential investors.
The Media Stakeholder
Le Jeune (2005) observes that the media lacks enthusiasm for publishing positive tales of corporate benevolence, with the real story remaining key business issues, and retains a suspicion of any activity claimed to be for more than short-term profit, a significant issue which Public Relations professionals continually struggle with. The Media frequently ignores positive news about organisations as not being interesting to their readers.
Consumers also have limited interests, and the issues that concern them are most often those receiving media attention- so one stakeholder is being influenced directly by the responses of another. A recent survey of UK respondents identified the issues of obesity, irresponsible drinking, smoking risks, crime rates and debt as being of greatest concern (Trends 2007), all very current issues with observable effects close to home.
Appealing to Consumers
Marketers suggest that a company hoping to appeal to as many of its own consumers as possible should devise a CSR programme reflecting their primary interests. The obvious risk from a PR perspective is that this move would invite cynicism if it were suspected as the main, or indeed the only, motivation behind a new campaign. Ideally the organisation would support a cause which suits its public identity and does not require constant, monotonous reinforcement of the association to establish a link (e.g. the well-known advertising icon the Andrex puppy as a Labrador provides a natural link to the work of Guide Dogs for the Blind, the charity they support).
Interest in CSR Results in Action?
To complicate matters, even a professed interest in CSR may not reflect in behaviour. Of far greater interest to the shopper are concerns like price, taste and sell-by date (Doane, 2005). While a high proportion of consumer respondents (around 87%) will agree that companies should behave responsibly, they do not necessarily follow that concern through in their actions. Only 22% of UK shoppers consider corporate responsibility whilst shopping, and less than 4% would actually avoid purchasing items because of the manufacturer’s poor ethics (Trends, 2007). This suggests that the value of CSR in terms of increasing profits via sales is not particularly significant.
References
Doane, D. (2005) ‘The myth of CSR. The problem with assuming companies can do well by doing good is that markets don’t really work that way’ accessed 02.09.2007
Le Jeune, M. (2005). ‘Communicating corporate responsibility’ in ‘Public Relations in Practice’. A. Gregory (Ed.)
Lewis, R (2006) ‘Firm’s CSR work fails to excite public’ PR Week, 10th November 2006
Mackey, Alison , Mackey, Tyson B. & Barney, Jay B (2007) "Corporate Social Responsibility and Firm Performance: Investor Preferences and Corporate Strategies" . Academy of Management Review
Trends (2007) ‘CSR is not consumers priority’ Marketing Week, 26th April 2007
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