If you’ve recently tried to get on the tender list any of Europe’s top 1000 companies you’ll be familiar with the question: ‘Does your company have a CSR policy? If yes, please provide evidence and a copy of the policy.’
Now tell me or your board of directors you’re not interested in CSR. This one issue could help you or prevent you getting onto tender lists, preferred supplier status, RFIs and RFPs. It’s not a fad or ‘pc’ fashion, its business in the 21st century. As marketers we all know that we have to watch for the trends and act appropriately.
Industry bodies are increasingly reporting that CSR is becoming a major issue. I recently visited an event industry evening and witnessed the attendees vote CSR and working with purchasing departments as their two biggest challenges in the industry.
But it’s not just the environment. CSR needs to become a part of your policy, owned and respected at every level of the organisation – including marketing. The policy should consider social engagement, economic and environmental.
Business to business customers are, or soon will be, asking questions about the factories you have; the materials you’re using – are they sustainable, damaging; what waste is produced and its disposal, how about energy usage; how people are being treated at your manufacturing sites, hygiene.
Why? Because your dealers, distributors, customers, users and owners are interested and they’re going to make you account for your actions and your approach. It’s natural that CSR becomes an embedded part of your brand, after all its part of the promises you’re making.
We are currently watching companies in India and China using an active CSR policy (a mix of social, environmental and economic) to accelerate brand building and acceptance in western and developed markets. It makes sense. Once they’ve done it they’ll become quickly embedded in global supply chains.
Oh yes and by the way, once they have this status they’re going to start making the supply chain shorter by removing distributors and making direct contracts. CSR will be the fastest way for these new players to build brands.
Should marketers champion CSR and celebrate the opportunities its creating? For those of us who can remember the emergence of ISO 9000 and quality assurance in the late 1980s, you can start to spot the signs maybe. It’s in every news bulletin, every newspaper, every board room agenda. It’s not going away. Own it, innovate, lead while you still can. Command the high ground – and possibly the moral high ground.
