Remember when sustainability was the next ‘big thing’? Oil companies trumpeted they loved the environment; cement and steelmakers promised to improve air quality. Even services companies – hardly the biggest polluters – highlighted they used only chlorine free paper.
Today, of course, companies’ adherence to good Governance, Social and Environmental (ESG) practice is expected and the message of good corporate citizenship has sunk in. Businesses can be sure there will be stakeholders – clients, employees, investors or media – checking they walk the talk.
With so much genuinely achieved, I reckon it is time to look at Corporate Social Responsibility (CSR) again.
CSR is no longer about just caring for global warming. Nor is it even the broader concept of a business’s overall impact on local communities and cultures. Instead, a company’s performance today should be judged in the widest way possible, showing how strategic objectives and material topics actually support the long-term creation of value for the business and society at large. The Adecco Group’s global reach and insights into the labour market enable us to provide informed guidance that will not only serve our own purpose but economies, organisations and individuals. Our company and people are well positioned to contribute to prosperity by unleashing the power of work.
While aiming to increase profit, companies also need to put the focus on how it is earned. This requires a mind-set change for many executives, to move away from thinking and acting in quarterly reporting cycles towards investing long-term by taking into account their company’s impact on the lives of future generations.
Those that can demonstrate their businesses benefit to stakeholders and society at large gain an edge in attracting and retaining talent. Additionally, setting a good corporate example can inspire others to aim for the highest standards. And, finally, doing business responsibly and with a focus on future generations has the potential to create deeper relationships with clients by becoming more than just a supplier but a valued and trusted business partner.
Traditional financial reporting excludes too many factors influencing a company’s reputation, long-term performance – and hence value. Reporting on pre-financial KPIs offers broader information about a firm’s capacity to create value, allowing those interested to better assess risks and opportunities.
Of course, some industries’ purpose can be more directly linked to contributing to a greater good than others. The employment and recruitment sector being one of those. It fosters and nurtures conditions where people, companies and societies can thrive. As an example, by facilitating access to work, we act as social integrators right across the age range. We provide essential work experience and access to the job market for youngsters. We ease transitions from one job to another or even from one industry to another, for people with a variety of backgrounds, abilities and at any stage of their careers. Through such services, our industry delivers decent and meaningful work, reduces unemployment and allows companies to turn available work into actual jobs also in uncertain economic times.
CSR cannot remain a side pursuit for companies but must move to become an integral part of a company’s business strategy and performance reporting. CSR is not a matter of generous grants and worthy foundations – companies are defined by what they do, not what they give. Therefore, businesses must increasingly unlock their intellectual assets and the power of their people to gain real traction. That means having a clear, widely understood and shared, purpose which drives prosperity for society at large.
by Alain Dehaze