CSR rises to the top of the public relations agenda
The increased importance of CSR will undoubtedly speed up the already apparent transition of public relations practice from a primary focus on the delivery of communications strategies and programmes to a function where analysis of issues and management of changes in corporate ethical behaviours is of equal, and arguably greater, importance.
Today, more than ever, it is critical that public relations practitioners, ensure that the boards they advise understand that governments, businesses and consumers will and do take the reputation and behaviours of their suppliers into account when make procurement and purchasing decisions. Furthermore, sustainable environmental policies will be top of the CSR agenda.
Polluters, users of child labour and organisations that do untold damage to the environment through their manufacturing and logistics processes will find that any related increased margin they make on sales are lesser than the income they lose when such practices become public. And in today’s increasingly transparent and connected world, they will become public.
To take one example, environmental campaigner Greenpeace publishes a site that allows consumers to consult pollution league tables and identify the major polluters within their area. Current campaigns include a programme of action against Unilever because it buys palm oil for products such as its Dove soap from companies that are allegedly destroying rainforests and peat lands areas. The same campaign has seen people dressed as orang-utans climbing Unilever’s HQ building in London and demonstrations at its factories and advertising sites.
Although the campaign began on the internet and through direct action on Unilever premises, it is moving on quickly. Negative publicity is beginning to appear in national newspapers and the men in orang-utan costumes are also making their points with appearances at Dove’s advertising and public relations agencies. Of course there are many companies sourcing palm oil from the same sources, but there are two factors which combine to put a focus on Unilever. First, Dove has a high profile as one of the world’s best selling skincare brands with annual sales exceeding 2.5 billion euros. Second, it ran a highly politically correct campaign to establish Dove as a brand celebrating ‘natural’ beauty, and this has contributed towards perceptions of hypocrisy and accusations that agencies are trying to ‘green-wash’ Unilever brands.
The term ‘green-washing’, is becoming more prevalent. This is where people believe that an organisation is over-claiming its commitment to the environment and endeavouring to present products and services as more environmentally friendly than they are. And one can understand why it would be tempting to do so. Research shows that whilst product and service quality and value for money is always paramount, if there are viable competitors then the more educated and affluent consumers will choose the environmentally friendly alternative. And it is not just consumers; it is already the policy of a number of government agencies in Europe, including the UK’s Central Office of Information – the main UK public purchaser of marketing services – to require its suppliers to have and to evidence good environmental protection standards.
Businesses that claim to be strong on corporate social responsibility and then behave otherwise will increasingly find themselves at the receiving end of the hostility that comes with perceptions of trying to deceive customers. It is very important that, as companies review and improve their CSR policies, their PR and advertising teams never, ever allow them to over-claim. The damage to reputation of a poor CSR history will be greatly worsened by any attempts to gloss over the facts. Similarly, over-hyping what you are doing to fulfil the role of a responsible corporate citizen will result in cynicism about the many positive things that most global corporations are doing to protect both the environment and their workforces.
Over my working lifetime many companies have found, to their cost, the huge impact on share prices and the bottom line of damage to their reputations as good employers or good corporate citizens, from Nestle and Nike to Exxon and Starbucks. However, too many still take risks and we still see endless examples of companies where consumers boycott products because of poor labour practices, use of endangered species or environmentally sensitive organic materials. Indeed, whole nations find their economies and trade suffer in much the same way, from Japan for its continued support of whaling through to China whose policies in Tibet are reducing the economic potential that would usually come with being an Olympics host.
Recognition that putting the greater good ahead of short term profits ultimately boosts company performance has increased, although it is surprising that progress has been so slow. Over half the worth of the world’s largest corporations consist of reputation assets, commonly referred to as goodwill, and numerous studies show a direct correlation between corporate reputation and share-price, long term performance, regulatory approval, labour relations, retailer preference and consumer support. There is, in particular, much greater recognition of the pressing need to reduce the carbon emissions that scientists have linked to global warming.
Most major organisations are now looking at how they can make their businesses more sustainable and reduce their carbon footprints. And some are demonstrating that active carbon emission management improves both its reputation and its bottom line. A good example of a global business that has proven the benefits of sustainability is InterfaceFLOR, the modular flooring division of Interface Inc. Based in Atlanta, USA, the company is a worldwide leader in the production of environmentally-responsible modular floor coverings and other textiles.
InterfaceFLOR has won numerous design and innovation awards for its market-leading modular floor covering products. In addition, it has also become widely recognised as a pioneer in sustainable manufacturing and business practices, and has won many prestigious accolades for its environmental initiatives.
During the mid nineties, the company's founder and chairman, Ray Anderson, put the company on track to achieving a zero environmental footprint by 2020. Defined as Mission Zero, the company's drive to achieve this is a central part of its ethos and culture. It addresses sustainability on seven fronts. These involve eliminating waste and harmful emissions; maximising use of renewable energy; recycling waste materials and reusing products; developing resource efficient transportation methods; creating a culture that integrates the principles of sustainability into working lives; and creating new models for businesses.
To date, through a waste reduction programme, Interface Inc. has generated over $372 million in costs avoided. Energy efficiency programmes and a commitment to renewable energy has resulted in a 82% reduction in Green House Gas emissions on an absolute basis since 1996 and further changes to the production process have allowed for 100% use of renewable energy in their manufacturing processes throughout Europe.
InterfaceFLOR offers climate neutral products to customers through its Cool Carpet® programme in partnership with Climate Care- whereby certified carbon offset projects, such as forestry plantation acting as a carbon sequestration store - offset gas emissions generated during the lifecycle of a carpet. ReEntry is an initiative that provides work in the UK, across Europe and in the US for individuals with learning disabilities and sees old tiles returned to be repurposed, cleaned and re-used.
The company's aim is to move from the traditional industrial approach of 'take, make, waste' and move towards a more natural or cyclical system of material and resource flows. Encouraging other companies to follow its lead in resource friendly manufacturing policies and processes is also a central part of the environmental mission.
Sustainable values permeate the entire company and some of the initiatives currently in place include rewarding staff by energy saved rather than by output, offsetting carbon emissions caused by air travel through the Trees for Travel scheme, and Cool Co2mmute, an initiative which enables employees to calculate the Co2 emissions generated by their individual daily commute and identify the cost of offsetting them through investment in projects designed to prevent carbon from entering the atmosphere.
Extensive internal training programmes are in place to drive the integration of sustainability into every part of the business and across every function.
But this is not only about changing current business practices - it is also about creating new ones. This year, InterfaceFLOR has created a new product category as part of its sustainable mission: FairWorks will draw on local materials and handicraft skills from across the globe to create products that address the social aspect of sustainability.
The culmination of four years of research and development, FairWorks is based on the ‘Sustainable Livelihoods’ business model set out by the World Business Council for Sustainable Development’s (WBCSD). Its aim is to show how global business can collaborate with local communities on initiatives that are innovative, sustainable and commercially viable - and that benefit both parties. Just™, the first product in the FairWorks category, will be launched soon. Designed in India, JUST is the result of local artisans working closely with designers from InterfaceFLOR to create an offering that is truly unique
InterfaceFLOR is one of the companies that ECCO, a global network of PR consultancies represented in India by Pressman, represents and is using as one of its benchmarks for best practice on environmental CSR. In June this year ECCO will be launching a benchmarking service for businesses that want to measure their CSR programmes against peers. The objective is to enable businesses to better identify how they compare with peers across best practice CSR standards and, hopefully, both improve standards and reduce ‘green-washing’ and over-claiming.
Today’s business leaders must deal with chat rooms, activist websites and a voracious internet enabled stakeholder population. They must also deal with the huge issue of climate change. Now, more than ever before, the public relations professional has an important role to play as the corporate conscience.
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Last updated : 03-Jun-08
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