CSR MATTERS TO CONSUMERS​

Stakeholder influence has matured from an afterthought to a fundamental concern for organizations: CEOs, senior management, and investors. Recent shifts in dynamics combined with how customers use purchasing power to align corporations with their values and ideals have drastically changed market operations.

Faced with lawsuits, the threat of reputational homicide, boycotting, protests, and more, organizations are forced to clean up their acts or be held responsible for their actions.

Pressure from stakeholder demand for better Corporate Social Responsibility (CSR) resulted in 160 of the 250 most prominent organizations worldwide filing CSR claims in 2019.

However, outside stakeholders cannot understand the complexities involved in organizational operations as far as priming opportunities. Management is a game of options and tradeoffs and the reality is that pleasing all groups may not be possible.

In their article, “Strategy and Society,” Porter and Kramer, argue that society could benefit more from CSR initiatives that align with an organization’s industry and position in the marketplace.

That said, heightened levels of corporate accountability are moving in the right direction and with active intentions to diversify workforces within industries, more stakeholders will identify with communications.

The subsequent inclusion of those groups will create unique situations for strategic collaboration, resulting in opportunities never seen on such a grand scale.

At that time, organizations will feel less pressure to make quick decisions on what social issues to support and will have the freedom to offer more extraordinary service to society by choosing CSR that aligns with their company and alliance strengths.