9.16.2003 ET

(CSRwire) LONDON - “Corporate Social Responsibility (CSR) at the Crossroads” research study, published today by Cranfield School of Management, sponsored by Edelman, creates an empirically based framework to help businesses link their CSR programs to business and social outcomes.

Written and researched by Stan Maklan and Professor Simon Knox of Cranfield School of Management, the report says that business is taking too pragmatic an approach to CSR, by focusing on process, measurement and reporting issues. There is dissatisfaction about measurement and reporting both within business and the NGO communities, with both sides unsure about the ultimate impact of their current CSR efforts upon business performance and social-environmental outcomes.

In order for CSR to fulfill its promise of dramatically improving business and social outcomes, the study suggests companies must take a larger look at their efforts by asking three fundamental questions: For what are we responsible? To whom are we responsible? What is the case for change – how can we link CSR to business performance? Failure to answer these questions, and to develop a comprehensive framework approach based on the answers, may result in CSR becoming an expensive exercise in compliance with minimal impact.

Commonly held views about the business case for CSR are incomplete and at times highly assumptive. Based upon both literature and field research, the report proposes a framework that links CSR to business outcomes in a clear, structured manner – establishing a pathway from CSR, through changes in attitudes and stakeholder behavior, to business and social outcomes.

CSR at the Crossroads synthesizes CSR business case literature and management models of Financial Theory, Brand Marketing, Corporate Reputation, Customer Relationship Management and Strategy. Additionally, the researchers undertook in-depth interviews with senior-level CSR managers at six major multinationals that are seen as CSR leaders in their industries. The results show that companies feel responsible for more than just profit and to more stakeholders than shareholders alone – but that they are uncertain how to define the extent of that responsibility and set priorities among stakeholders. As these unresolved issues cascade, they create practical CSR reporting problems by making it difficult for companies to know what is material and to whom it is material.

The study identifies implementation issues that hinder efficient deployment of a comprehensive CSR framework, including: the need to measure stakeholders’ behavior, not just their attitudes; the need for a more widespread understanding of risk throughout the company; and the need for social/environmental reporting to be more integrated with financial reporting.

Report author Professor Simon Knox says, “The prize is worth the effort. CSR at the Crossroads shows that CSR practitioners who are trying to tackle this agenda have learned that CSR is really about creating a breakthrough in business performance, albeit defined more in the context of long term, sustainable performance.”

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EDITOR’S NOTES

About Edelman
Edelman helps build the world's leading brands and companies by understanding and mastering the "Relationship Imperative." As the world's largest independent public relations firm, Edelman provides a full spectrum of advanced communications services through its PR firm and specialty firms: Blue (advertising), First&42nd (management consultancy), StrategyOne (research) and BioScience Communications (medical education and publishing). Named “Agency of the Year” for 2003 by the industry trade journal The Holmes Report, Edelman has been in business for 50 years, and has 1,900 professionals in 40 offices throughout North America, Europe, Latin America and Asia Pacific.

About Cranfield
Cranfield School of Management is a world-class university business school, renowned for its strong links with industry and business. It is committed to providing practical management solutions through a range of activities including postgraduate degree programs, management development, research and consultancy.

About First&42nd
First&42nd is a Corporate Social Responsibility consulting practice that provides its client companies with strategic counsel and practical, on-the-ground project implementation. First&42nd helps clients across the full range of CSR issue areas including corporate ethics and values, social-environmental reporting, stakeholder engagement, issue identification, supply chain management, and global codes and standards. Owned by Edelman since 1998, First&42nd has offices in San Francisco, London, and Paris.

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