CSR - the Essential Economist Podcast

This podcast is a couple of years old, but frankly it is so good that I think it ought to be essential listening to every colleague and student preparing students for exams which feature CSR…

The podcast is streamed below. I have jotted down some summary notes further below which you are free to use as required.

NOTES

Interview with Daniel Franklin (2008)

The sceptics about CSR - their battle has been lost.
Focus now is what companies are actually doing, not whether it is a good or bad thing

Two good examples of CSR best practice:
- M&S Plan A - lead from the top, but not trying to get too far ahead of customers
- GE - Ecomagination - investing in green technologies

Why has CSR become mainstream?
- Expectations of companies have risen
- Consumers much more aware of the actions of firms
- increased scrutiny by NGOs and pressure groups
- Business reputation is at risk if they are found to have behaved inappropriately
- Environmental concerns - state of the planet
- increasing focus on risk management

How are companies getting CSR wrong?
- Many firms make a lot of noise about CSR, but dont think or act deeply
- CSR located in the PR/marketing department
- Phrase CSR covers such a wide area of activities; companies are too scatter-gun rather than focusing on the benefits that matter to the business, shareholders and society

Can CSR be a bad thing?
- If it is not good for the business, then it is no good
- Well-intentioned activities can end up damaging businesses (e.g. regulations, laws)

Resistance to CSR
- Several reasons why firms ignore CSR
- Ignorance of potential pressures (may be surprised in the future)
- Deliverately ignoring CSR - can’t see the benefits or operating in a sector that is not really under pressure

CSR as an opportunity for business
- Attracting, motivating and retaining the best people
- Need to be an organisation which top people want to work for
- Green agenda: opportunity to reduce operating costs as well as innovate to create new products and services
- A mindset of being closely attuned to changing customer and market needs

Measuring CSR
- Difficult to measure / quantify?
- Output side: how much good is being done?
- Various rankings and reporting initiatives (but are these box-ticking exercises) + potentially provide a form of cover for firms who are not really taking CSR seriously

CSR as a global concept
- CSR is undoubtedly spreading through the global economy
- Globalised supply chains (e.g. multinational supply chains)
- E.g. toy industry & product recalls from Chinese factories
- Firms within emerging markets increasingly looking to expand globally - now coming under scrutiny
- Growing awareness/appreciationg of CSR in China, albeit from a low-base
- Pressure/conflict between growth & CSR

Relationships between Business & CSR activists
- Changing relationship between business & NGOs
- Less confrontational and more partnership based
- Some NGOs still very suspicious of / hostile to business
- Collaboration between the two helps develop the relationship
- Helps business reach consumers in poorer countries

CSR and the Economic Downturn
- Is CSR a discretionary add-on or is it here to stay?
- A test of how serious businesses value CSR
- Management under pressure to justify the benefits