Why a company must demonstrate commitment to CSR? This is the "big question"
Many consultants and managers use only one argument: CSR will make your business more profitable. However, I think that's not the only argument and, moreover, if you want to make money fast, CSR is not the recommended route.
So I propose a five arguments that convince managers and presidents of companies, where profitability comes last:
1) Be a better business: working the economic, environmental and social indicators following international guidelines (GRI, ISO26000, SGE21 or other) forces you to work better, it forces you to manage improvement indicators and forces you to update your company according to XXI century standards.
2) Strategic positioning: CSR is working in the medium and long term, by forcing the company to rethink its strategically position and vision.
3) Investment: the effort to be better strategic planning company and force companies to invest in many different areas.
4) Strengthening the brand: the effort to be better company in the long term projection and reinforce investment reinforces, undoubtedly, the brand image of companies.
5) Performance: Finally, as a logical consequence of a good job in the above, will the expected profitability in the medium and long term.
The President of the Stock Exchange of Colombia was made clear in the presentation of the sustainability reports of Ecopetrol and Telefónica: CSR has a positive effect in the stock value of a company in the long term. This is not magic, but the logical consequence of an effort by the company in terms of continuous improvement, strategy and brand investment.
Urra Miguel Canales
@ Miguelurra
Tips: profitability, investment, branding, CSR arguments
