CSR that Makes Sense

In a recent lecture about corporate social responsibility, we read that corporations are becoming increasingly aware that practicing business sustainability (ie. Sustainable suppliers, organic products) and creating value for customers is no longer optional. Corporations who wish to be successful in the 21^st century must move with the “green wave” and focus on environmental stewardship in order to maintain competitive advantage in a continually improving society. However we also read that it is still optimistic to believe that businesses have abandoned their “pure profit-maximizing” philosophies altogether as many CEOs still believe that “if your key stakeholders believe in environmental concerns, then it is the right thing to do for your business.”

Following this wave, I read in a recent article in the Globe and Mail which highlighted Honda’s efforts to become more socially responsible. Earlier this month, Honda launched its CSR Statement and CSR website in North America. The website outlines Honda’s dedication to four main pillars: environment stewardship, valuing diversity, community involvement and fostering education. The website includes blogs for each pillar which aims to include consumers in the conversation about what Honda’s CSR initiatives. A post under the Community blog showed that Honda was going to make a dollar per dollar donation to the Hurricane Sandy relief matching each dollar donated by its employees.

Although environmental and social stewardship is positive for our society, I believe that such actions need to be sustained over a long period of time and relevant to a corporation’s practices. For example it wouldn’t make very much sense if Apple Inc. donated to building a playground. A better choice would be to donate to youth innovation projects.