By Bill Valentino
The United Nations Global Compact emphasizes a link between corporate social responsibility and communications by declaring that "Effective two-way communications is essential to CSR success." CSR is not just a buzzword anymore. Communications are rapidly taking on a critical role in the evolution of CSR by informing and creating awareness of its role in connecting business and society.
CSR is evolving as a fundamental new business model for the 21st century. It articulates a new business dimension in which the underlying key concept is how private enterprises affect, and are affected by social, economic and environmental issues. In this new age of CSR, companies need to take a stance and look at sustainability seriously. They need to find a balance between their self-interest and what is in the interest of society, especially where the expectations and demands of stakeholders and the public must be constantly anticipated, considered and addressed and most importantly communicated.
This evolution is taking place in a global context where the world's many cultures, social, political, and economic systems are producing a great variety of "business-in-society" interfaces. But whether at the global, national, or local levels, the impact of business on society is now undeniably both substantial and growing.
A Critical Role for Communications
In an increasingly economically, environmentally and socially interconnected world, "communications" are providing a critical interface between the private sector and its stakeholders or "publics". This is essential to ensure success and overall acceptance for CSR.
Where Does Public Relations Fit In?
Public relations, properly placed and administered in the CSR business model, functions as the critical link between a corporation and its stakeholders. This makes communications and public relations a vital factor for CSR success.
The interaction, or partnering, with stakeholders (i.e. governments, NGOs and other organizations) is the core of CSR practice. As more corporations consider their impact on numerous stakeholders and begin to recognize how CSR is evolving they first assign the task to one person within the organization taking a "do-it-yourself" approach and a "nice to have" attitude. This usually ends up in the marketing department or more often in the Corporate Communications or Public Affairs departments.
Realizing that compliance and philanthropy, which have gained companies' goodwill in the past are no longer enough, CSR then begins to go to the next phase, where it becomes a part of business and a part of critical business processes. Pursuing this new direction, companies then begin creating separate departments for CSR headed up by VPs and Directors for CSR and Sustainable Development. The next logical step that can be anticipated is partially outsourcing the function to a dedicated agency by turning to PR firms who are eagerly taking on the function of creating an enabling environment for CSR.
With a fast-spreading commitment to CSR worldwide it is rapidly becoming a growth industry that has changed considerably from just philanthropy into support for causes and issues that have a social development context and widespread implications.
As CSR evolves and assumes greater importance, public relations firms are moving quickly to recognize CSR as a new business dimension and are establishing dedicated departments that are beginning to contribute significantly to creating "business-in-society" interfaces.
PR firms are providing strategy and implementation logistics, helping to coordinate with NGOs and industry associations, and ensuring the proper and transparent use of funds. CSR entails identifying projects, partners, NGOs , and defining a suitable budget and timeline. This requires a lot of planning, and companies are increasingly enlisting the expertise of PR firms to assist in creating more planned and strategic approaches.
The case is strong for public relations to be associated closely with CSR management both internally and externally. The essence of professional public relations practice is to apply communications to help an organization to develop and maintain reciprocal relationships with stakeholders (publics) that can influence their futures and their businesses. Here lies the opportunity for in-house CSR practitioners and PR firms to collaborate and play an important role in communicating a company's message that contributes to a thoughtful and beneficial CSR strategy for responsible and sustainable business.
PR Means Different Things to Different People
Public relations means different things to different people. To the skeptics, the more limiting or even negative interpretations of CSR and public relations use the terms "green wash", "spin" or self-glorification. In this context the question frequently arises whether corporate social responsibility can ever be a serious topic for traditional PR consultancies, especially those that focus predominantly on short-term crisis management. PR firms are widely synonymous with polished marketing and single-minded image positioning — but then CSR is not just about "looking good."
Public relations can be a force for good or for ill. As a force for good it can be immensely important in aiding the understanding of how companies can participate in this new model of "business-in-society" that is being created by CSR.
PR firms are an interface between corporations and their publics. They are an important broker between companies, NGOs and governments, advising companies on how to make their partnerships work. They are an important link in creating an environment where corporate citizenship is equally important to competitiveness and governance. They are key in assisting companies to meet the challenges of managing this a triad of pressures which is shaping business leader's agendas, and enhancing their ability to raise their business performance.
In doing this, CSR includes communicating best practices that range from companies who justifiably trumpet their CSR efforts, to many others who go quietly about their business of creating systemic changes in the world by just knowing that they are minimizing their impacts on society and the environment while contributing to economic development and prosperity.
CSR success is based on progress in creating awareness for, solving or at least improving some of the world's large-scale problems. This is marked by measurable progress in reducing poverty, improving healthcare, increasing education, respecting diversity and protecting and sharing vital resources. If PR can authentically support these outcomes it has an vital place and function in the MBA Toolkit for CSR.
From a business perspective, success is not only a matter of risk management to reduce the threats of financial or reputational damage. It is becoming more and more a matter of capitalizing on emerging opportunities and innovative means to create competitive advantage. Communicating a thoughtful strategy for responsible and sustainable business is meant to ensure that the meaning and scope of CSR will be extended to all stakeholders and a larger social community base. This emphasizes the point that CSR fundamentally must go beyond just charity, donations and "looking good.'
Values Driven Public Relations
Many misunderstand public relations by defining it in terms of creating high profile images – making publicity synonymous with public relations. Publicity is just one of the many tactics used by public relations. According to Rex Harlow, PR is a management function that " helps establish and maintain mutual lines of communications, understanding, acceptance, and cooperation between and organization and its publics". This links PR inextricably with the evolution of CSR in companies.
In this context public relations takes on the task of creating the tools for companies to ensure that their actions match their words by aligning their efforts with the values of their organization, PR tactics, targeted publics and society itself. This is "values driven public relations" — "the management of values-driven management of relationships between an organization and the publics that can affect its success". It is the process of "uncovering not just where an organization wishes to go but also the principles the organization will observe in getting there." (Source: Public Relations A Values-Driven Approach Guth / Marsh)
This approach represents a CSR approach to a dynamic and diverse society in which complex issues and competing values bring different groups into conflict. It prepares the manager who will use PR in the CSR toolbox to deal better with a world of increased responsibility, scrutiny and accountability. (Source: Public Relations A Values-Driven Approach Guth / Marsh)
Challenges for PR Companies
In the dialog focused on CSR and PR, there are credibility challenges that need to be addressed regarding PR firms themselves. One credibility challenge with PR firms (and with businesses and NGOs alike ) is their own reputations. Do they accept money from clients with dubious aims, do they strive to advise clients on long-term strategies instead of just headline grabbing events or concentrate just on short term crisis consultancy. To have CSR consulting credibility, PR firms most notably must exercise the right to refuse work with mistrustful companies, acting against their own business self-interest.
It is important to note that all institutions in society have responsibilities to society – whether they are "for profit" on "not-for-profit." So in this context it would be valid to examine PR firms, as businesses, for their own CSR track records and initiatives to ascertain how they are operating in this fundamental new business model.
CSR is mobilizing PR firms to adapt their cultures to diverge somewhat form the old rationale of the traditional PR companies. CSR is preparing them to perhaps take on a new role beyond the traditional mindset of PR firms. That role would be advocating for ethical business – a potentially important role for PR firms with their clients and organizations with whom they closely collaborate. A key contribution and opportunity for PR firms that is emerging is the ability to guide and advise global companies on how to adapt to cultural diversity and tailor CSR programs to local needs and conditions.
PR and CSR: A Final Thought
Responsible and Values-Driven PR offers an understanding of how companies can participate and be successful in the new CSR model of "business-in-society". Companies need to understand the benefits of engaging PR firms in creating their CSR strategies by working with them and not just handing over their entire CSR function to them. In this new CSR dimension of business both PR firms and clients (corporations) must have the willingness to engage and be prepared to change as a result.
Although CSR may present great potential for the PR profession, and companies actively practicing it, its true value cannot be forgotten – i.e. that commitment and resources applied to solving the important social and environmental issues can powerfully stimulate business development and success. Knowing how to productively use PR in a CSR agenda that achieves such impacts rather than just publicity, is ultimately the important message that needs to be understood.
About the author:
Bill Valentino, continuously working for Bayer in China since 1987, holds a MBA from Thunderbird, the Gavin School of Management, and a MA in Technology and Communications from Columbia University, New York. He co-directs the Tsinghua-Bayer Public Health and HIV/AIDS Media Studies Program and is a Senior Guest Lecturer at the Center for International Communications at Tsinghua University. He is also currently the Chairman of the European Chamber’s CSR Working Group and a long-standing member of the AmCham CSR Committee in Beijing.
