I have been doing some research in the area of Corporate Social Responsibility (CSR). While most of the people know what it is, the benefits of it for companies, consumers and environments, there are still many issues that we, as consumers, should think about instead of taking things at the face value.
CSR: a trend or a genuine concern?
Twenty years ago, incorporating social responsibility into business model differentiates one firm from the rest of its competitors. Today, not having a social responsibility as part of a business is a disadvantage in the industry. Are firms really taking on the responsibility of how their businesses impact the society or environment? Or is CSR just another pretty packaging that firms use to increase their bottom-lines?
I think one way to exam those factors is to look at the company and its CSR activities as a whole. Besides putting on a label and claiming a portion of the product’s purchase would be donated to charity, does the company involve the entire employee population to be part of the good cause? One example of effective CSR effort is done by CIBC. The bank recognized the Run for the Cancer has become a passionate cause of many of its employees, and seeing this as a great opportunity, CIBC decided to put its resources and brand behind the movement. The result is a $33-million donation to the Canadian Breast Cancer Foundation, with 175,000 participants.
CSR: labeling
Another issue concerns the proper labeling of products. I once purchased something to show my support to a good case and then later on found out such said donation has a cap of $2 million so all the purchases pass that amount goes straight to the company. Such obscurity gives rise to movements towards better consumer awareness of companies’ CSR activities. In a campaign called “Think Before You Pink,” the Breast Cancer Action group urges customers to be more attentive to how much of their spending will actually contribute to the cause.
Do you read all the information regarding CSR activities on the label? If you don’t, you should start doing so.