Экономические науки/2.Внешнеэкономическая деятельность

Ivanenko I., Vikhoreva N.

Donetsk National State University of Economics and Trade named after Mikhail Tugan-Baranovski

Corporate social responsibility in the Economic Crisis

The financial crisis provides an opportunity to move towards responsible investment, where there is an incentive for a long-term vision rather than short term gains. Investors need to look beyond immediate financial performance and look into how businesses are run. Decisions on investment are not just about returns but are also about ensuring healthy, productive and sustainable economies and societies. Corporate social responsibility (CSR) is, by its very nature, a broad subject – from community relations to sustainable development.

The European Commission's definition of CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis [1].

CSR can make a significant contribution towards sustainability and competitiveness, both in Europe and globally.

Corporate Social Responsibility is part of the Europe 2020 strategy for smart, sustainable and inclusive growth. It can help to shape the kind of competitiveness model that Europe wants.

CSR is more relevant than ever in the context economic crisis. It can help to build (and rebuild) trust in business, which is vital for the health of Europe's social market economy. It can also point the way to new forms of value of creation based on addressing societal challenges, which may represent a way out of the crisis.

In March 2010 the European Commission made a commitment to “renew the EU strategy to promote Corporate Social Responsibility as a key element in ensuring long term employee and consumer trust” [1].

Society’s expectations of companies are growing significantly, according to the latest round of GlobeScan’s annual CSR Monitor. The unpublished public opinion data shows average expectations rising across eight of the world’s largest economies, where attitudes to CSR have been tracked from 2001 to 2009. GlobeScan is now analyzing the full results across 32 countries [2].

Promoting CSR has been a high policy priority for the EU for many years, as illustrated by the 2006 Commission strategy to make the Union a “pole of excellence” in the field. In addition, the European Commission has supported a number of business-led initiatives to promote CSR, such as the European Alliance for Corporate Social Responsibility. It also facilitates dialogue through the European Multistakeholder Forum on CSR.

In order to ensure a wide uptake of CSR, the European Commission backs efforts, including a number of EU-funded projects, to promote it in individual industrial sectors. For instance, PRISME2 aims to create a networking programme dedicated to building CSR capacity among SMEs in the chemical industry. This was carried out in the context of ‘Responsible Care’, the chemical industry’s global voluntary initiative to improve its health, safety and environmental performance. The European Chemical Industry Council (CEFIC) has also created a Responsible Care toolbox for SMEs, covering a wide range of topics from occupational health and safety to energy efficiency and supply chain management.

Given the additional costs involved, it is tempting to think of CSR as something of an optional luxury in difficult economic times. In actual fact, CSR is more important than ever in the context of the global financial and economic crises.

This is partly because public confidence in the social and environmental responsibility of businesses has been shaken. For example, the financial crisis damaged public trust in the banking and financial sectors, while the subsequent economic fallout – with its accompanying recession and job cuts – hurt confidence in the social responsibility of industry and large corporations.

However, there are signs that confidence is recovering. For instance, the 2010 edition of a trust barometer reveals that trust in business has risen considerably, mainly driven by western economies. One of the reasons attributed to this improvement is the growing tendency among corporations to listen to and engage their stakeholders, and to play a role in addressing societal challenges. This clearly shows the importance of CSR.

CSR leaders could enjoy new business opportunities – especially if they are prepared to adapt and innovate. In this crisis, there are very substantial opportunities for businesses which take seriously to find new business opportunities.

First, leadership companies should focus hard on costs like the cost of energy, which has a tangible bottom line. BT is in the business of communication technology, so we different ways of proposition could be offered. Seeing similar new thinking in others: how to use the crisis as an opportunity, and to look for new revenue streams for instance to replace energy and travel costs with innovative IT solutions.

Second, leading companies will have to deliver functional and inspirational goods and services, as too many had failed to “hit the sweetspot,” like the Toyota Prius (the first mass-produced hybrid electric car) had missed out on advertising budgets, and were not attractively priced.

Third, leadership opportunities also include developing new collaborative models. Leadership will be demonstrated by those who try to remake the system in disarray. Everything is to play for now that the system is upside down. The crisis helps to ask big questions.

Previously, the economic expansion offered little opportunity or incentive for change, given the benefits it offered to the main actors. The new system will be defined by whether apply efforts to rebuilding the system we’ve been living in last years, or rebuild something else. That’s the part to play for.

A critical factor in defining a new system, however, will be how far investors change their perceptions of corporate responsibility. Will they recognize the failures of irresponsible companies or whether will they value “externalities,” the actual social and environmental costs not included in the market prices of goods and services.

1. European Comission [Электронный ресурс] – Режим доступа: http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/index_en.htm

2. GlobeScan Salon Briefing [Электронный ресурс] – Режим доступа: http://www.globescan.com/news_archives/salon_lon-0109/