The CSR Myth: True Beauty Comes From Within
Companies are increasingly investing in Corporate Social Responsibility (CSR). Their aim is to strengthen corporate reputation and to safeguard it in the long term. But how effective are such measures? Are the high costs justified? Matthias Vonwil and Robert Wreschniok have their doubts.
A recent study by the European Centre for Reputation Studies (ECRS) shows that between 80 and 90 percent of a company’s reputation is determined by economic aspects and not by the company’s engagement with society. Most importantly, reliable and reputable corporate communications are the foundation for a solid reputation. The effect of other CSR activities, by contrast, is much smaller than expected.
Risks and Opportunities With CSR
In the worst case, CSR can even lead to additional reputational risks. For, as soon as communicative measures aimed at boosting social reputation are exposed as pure marketing devices, they lose their credibility and the organisation its authenticity.
Still, CSR represents a massive opportunity for every company. For example, CSR is often the best response to challenges within a company, such as fostering teamwork, inter-departmental communication and identification with the company. But for this, companies need to change their approach to CSR. Instead of asking: "Where could we usefully get involved?", the first question should be: "What problems are there within our company that could be effectively addressed with CSR measures?"
CSR, understood this way, is not primarily directed towards the public, but towards the company’s own employees. They are the most important stakeholders in any company and the decisive lever for successful CSR.
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