Monday, July 23, 2007

Problems with strategic CSR

One aspect of Strategic CSR is when a company uses its core competencies to help society; such as trained staff or (customised) products. But it is easier to just write a cheque and give some money. Not only is this quicker and require less time from the company (as well as being simpler, since companies are not development experts) but normally it just requires 1 or 2 people to sign off on the contribution.

If you want to, say, develop a new toilet that is suitable for people that lack suitable toilets, you do not need to just talk to PR or Finance, you need to talk to Sales and Marketing, R&D and HR... in fact you need an internal project team that is committed to this (and thus more than just the CSR person!) and able to do this. Part of the ability issue is whether the company allocates these people to the project. This project may be great in many ways, but it is most likely not going to be as profitable as targeting rich people and selling them toilets (though, in the long-term it might be). So, a) how to build this consensus and commitment to this idea throughout the organisation that you need to deliver this project successfully, and b) how to get them committed to the project, compared to the other priorities the company has?

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