Corporate Social Responsibility

Why CSR and Sustainability Reporting?

Sustainable development means different things to different people, but all agree that it’s something every organisation must strive to achieve.

Today companies and organisations realise that costumers and other stakeholders want to know how they take responsibility for contributing to social, environmental and economic development – locally and globally.

Investors are also willing to pay more for the shares of well-governed companies as it directly impacts their ability to attract capital, reduce losses and allocate capital to its highest and best use. 

Working with CSR is one of the key ways for organisations to significantly impact their value. The business case for CSR within a company will likely rest on one or more of arguments:

License to operate

Many corporations are keen to improve government relation. By taking substantive voluntary CSR steps, they can persuade governments and the wider public that they are taking issues such as health and safety, diversity or the environment seriously.

Risk management

Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These events can also draw unwanted attention from regulators, courts, governments and media.

Building a genuine culture of 'doing the right thing' within a corporation can offset these risks and reduce costs.

Brand differentiation

In crowded marketplaces, companies strive for a unique selling proposition which can separate them from competitors.

CSR can enhance brand image and reputation. It can play a role in building customer loyalty and confidence based on distinctive ethical values

Human resources

A CSR programme can be seen as an aid to recruitment and retention of the best and most qualified employees. CSR can also help to improve staff motivation and performance as well as corporate innovation.