HR practitioners have a role to play in encouraging the CEO to be a better corporate citizen
Canadian executives are thinking more than ever about their corporate social responsibilities, according to a report from the Conference Board of Canada. And their concern is paying off on the bottom line.
“There is a growing body of research that demonstrates the relationships between social responsibility, reputation and financial performance,” said Mary Choquette, co-author of the report.
Executives were surveyed about the link between a company’s social responsibility and its reputation. Ninety-two per cent of respondents felt that “reputation management” has become a more important issue over the past five years. Even more say it will become a more important issue over the next five years.
“A worldwide study of 25,000 people revealed that the public’s impressions of a company were most often formed by its corporate social responsibility performance, showing that (it) is now a leading driver shaping a corporation’s reputation.”
Respondents agreed that reputation affects a company’s performance, rating its impact on average at 8.1 on a scale of one to 10. In several areas, at least 80 per cent of respondents said that a company’s good reputation had a positive affect on their company. These areas include: managing business-to-business relations, developing new opportunities, finding and keeping staff, entering new markets, handling crises and building customer loyalty.
HR practitioners can, and should, encourage executives to consider and use reputation management strategies. Some firms market themselves on the strength of their ethical standards. Others raise awareness of their socially responsible activities or apply standards when choosing suppliers. Other companies use strategies to deflect criticism over controversial products or practices.
“Leaders today are... focusing their organization’s reputation on a specific corporate social responsibility driver. In this way they are not only building trust and credibility for their companies, but they are also creating a competitive advantage.”
Did you know that the University of St. Michael’s College in Toronto offers a certificate program in corporate social responsibility? This could be HR’s next big area of focus as it steps further into the boardroom. CHRR will continue to watch and report on this trend.
“There is a growing body of research that demonstrates the relationships between social responsibility, reputation and financial performance,” said Mary Choquette, co-author of the report.
Executives were surveyed about the link between a company’s social responsibility and its reputation. Ninety-two per cent of respondents felt that “reputation management” has become a more important issue over the past five years. Even more say it will become a more important issue over the next five years.
“A worldwide study of 25,000 people revealed that the public’s impressions of a company were most often formed by its corporate social responsibility performance, showing that (it) is now a leading driver shaping a corporation’s reputation.”
Respondents agreed that reputation affects a company’s performance, rating its impact on average at 8.1 on a scale of one to 10. In several areas, at least 80 per cent of respondents said that a company’s good reputation had a positive affect on their company. These areas include: managing business-to-business relations, developing new opportunities, finding and keeping staff, entering new markets, handling crises and building customer loyalty.
HR practitioners can, and should, encourage executives to consider and use reputation management strategies. Some firms market themselves on the strength of their ethical standards. Others raise awareness of their socially responsible activities or apply standards when choosing suppliers. Other companies use strategies to deflect criticism over controversial products or practices.
“Leaders today are... focusing their organization’s reputation on a specific corporate social responsibility driver. In this way they are not only building trust and credibility for their companies, but they are also creating a competitive advantage.”
Did you know that the University of St. Michael’s College in Toronto offers a certificate program in corporate social responsibility? This could be HR’s next big area of focus as it steps further into the boardroom. CHRR will continue to watch and report on this trend.
