As CSR responsibility moves up the corporate agenda, it is vital to communicate its value to investors
As CSR moves its way up the corporate agenda, opinion remains divided on how to communicate the results and value of CSR activities. At some companies, such as Marks & Spencer in the UK, CSR is championed as a core element of overall strategy; at others, IROs claim they are rarely queried on the company’s CSR policies and so remain unconvinced investors place importance on it.
For some companies the challenge is clearly to prove how CSR activities affect the bottom line and the company’s ability to operate a sustainable business while creating shareholder value. The CSR report and key performance indicator (KPI) measures can be long and detailed and don’t usually bring the subject alive in any compelling way.
BHP Billiton’s approach was to exploit video to illustrate the firm’s full commitment to sustainability and how it improves performance. One such project was Mozal in Mozambique. In a 10-minute investor documentary, BHP demonstrated how it is investing in local infrastructure, education, AIDS and malaria health programs, and what the result of this is: a worldclass aluminum smelting operation and a healthy, educated and effective workforce. The documentary forms part of a series featuring local projects across the world, from Alaska to Australia.
Other issues for sustainable business include climate change and carbon emissions. Companies perceived to be high contributors to these problems are tackling their critics head-on, demonstrating on video how they are part of the solution. A recent video case study by Rolls-Royce on ‘clean marine power’, as part of its online investor seminar, illustrated one of the many ways the company is working to reduce emissions and its toll on the environment.
No single communications solution fits all but, whether a company focuses on print reports or combines them with video, there are some common key elements to making CSR relevant to investors. First, ensure your audience understands that the CEO and top-level management are making CSR central to strategy, then demonstrate its implementation on the ground and its positive impact on the bottom line, building a sustainable business going forward.
SABMiller commented on the value of a recent CSR documentary by saying, ‘Pictures say more than words. If you can bring alive what you’re doing like this it makes a huge difference – people can see what you’re talking about and what these concepts really mean in practice. We’ve used it countless times, on different occasions from stakeholder workshops to government and NGO events.’
Finally, many companies are now finding that communicating their CSR program is proving an essential tool in the competition for talent. The long-term sustainability of a company depends on attracting and retaining the best people, and corporate citizenship is proving to be a factor directly influencing their choice of employer. Companies must tell investors why CSR matters to firms – and why it should matter to investors.
