Public opinion driving CSR activity

5 June 2011

An altruistic desire to preserve the natural environment remains low on the agenda of businesses according to the 2011 Grant Thornton International Business Report. Just 36% of businesses globally are motivated to move to more ethical practices by a desire to 'save the planet', down from 40% in 2008.

However, businesses remain focused on the merits of corporate social responsibility (CSR) in terms of building brand, securing key staff and winning future contracts. Globally, 56% of businesses cite public attitudes/brand building and recruitment/retention of staff as the key drivers (alongside cost management) this year, highlighting the importance of public opinion in shaping businesses' CSR priorities.

As businesses in mature markets continue to grapple with sluggish growth, businesses in emerging economies appear most concerned with reducing their impact on the environment: 60% of the BRIC nations and 59% of those in the ASEAN group cite saving the planet as a driver towards more ethical business practices, compared to just 30% in the EU and 16% in North America.

Ed Nusbaum, CEO of Grant Thornton International, said: "In an increasingly crowded and dynamic marketplace, businesses globally are becoming more aware that adopting a proactive approach to wider corporate social responsibility issues can help them to stand out in the minds of employees, consumers and potential partners.

"Moreover, as businesses, and indeed consumers, in mature economies struggle with the fallout from the economic downturn, altruistic concerns over the environment have been forced into a backseat role. Businesses are focusing on the bottom line and consumers are looking for ways to make declining real disposable incomes go further. That said, businesses in emerging markets, as we have seen with the wider global economy, appear ready to take the initiative in driving the CSR agenda forward."

Meanwhile, levels of CSR activity undertaken in relation to the environment, workforce and wider community vary significantly across the globe. Businesses in northern Europe and Africa, together with much of North America and the Asia-Pacific region lead the way in initiating socially responsible practices, with those in mainland Europe lagging behind.

The survey also uncovered some polarisation in the reporting of CSR practices: A quarter of businesses globally report their CSR activity, but this ranges from 53% in Latin America and 41% in the BRIC economies to 17% in North America and 18% in the G7 economies. Moreover, businesses are divided as to whether the reporting of CSR activity should be integrated with financial reporting: 44% agree that this represents best practice, but 40% disagree with a further 17% unsure.

Ed Nusbaum added: "All businesses should look closely at the potential commercial benefits of reporting their CSR activity. A competitive advantage exists for those businesses which can demonstrate leadership in implementing socially responsible and transparent practices and seize the opportunity to attract and retain skilled workers, build brand value and secure future contracts with multinationals who frequently adopt strict CSR guidelines in selecting their suppliers."

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