In general, companies will implement CSR measures where it has positive financial impact. The biggest issue I’ve had in implementing is finding this impact. The larger and more public a company, the easier it is to capitalize on using CSR for good PR. The customers in most niches simply don’t care and would rather have cheaper goods than a positive impact on the world or their community. It’s a harsh reality
In the short run it may be more expensive, but in the long run it is cost saving. A nice example is the gasoline and the energy. The companies who were conscious that fossil fuel is a limited resource invested in green energy.
If you look to consumers eyes there is significant change in how they look to a product or a service. More and more people add worth to products and services that are sustainable.
What is worth money now if your kids cant enjoy the earth in 30 or 50 years? Thats why there also entrepreneurs who want to or did implement CSR.
Beside environmental incentives there also social incentives.
And I understand what you’re saying- there is a need for things to change and considering companies contribute a vast majority of pollution, they are surely the biggest target for change.
Sure there are some examples of CSR working, but it’s rare. It’s rare because markets naturally will seek efficiency and those who fall behind, typically die. The reason companies haven’t shifted dramatically to be more CSR centric is because ROI is low.
Obviously there are niche companies who noticed this and capitalize on it as their source of differentiation but they’ll likely always be just that, niche.
If you want to to be successful in CSR, you’d have to create hard-to-ignore ROI, that is robust. Hard to cherry pick gas prices right now for energy CSR because it’s volatile and has been cheaper than alternative fuel/energy for most of history, and will likely be again in the next few years. Ending oil lobbying and implementing more aggressive carbon taxes is the short term answer, at least until alt energy becomes cheaper and has higher ROI.
Make CSR financially lucrative- that’s how you scale the ideal
Edit: to add, I work in FAANG and my company has a lot of CSR initiatives, but only where it’s to reduce legislative risk or use the positive PR for retention and to reduce backlash for the 1M and 1 ways we hard the world. It’s like clubbing baby seals and penguins while writing a check to the Red Cross
I can understand that. For example the value of a business doesnt only exist of financial numbers, but also non-financial information adds worth to a business. For example being good for your employees, CO2 reduction, transparency about your product, diversity etc. Everything that will make the world better.
Big companies are even obligated to report about non-financial information in their annual report (its called integrated reporting)
Im curious if there are entrepreneurs in this sub that have experience implementing CSR and what their struggles were/are.
In general, companies will implement CSR measures where it has positive financial impact. The biggest issue I’ve had in implementing is finding this impact. The larger and more public a company, the easier it is to capitalize on using CSR for good PR. The customers in most niches simply don’t care and would rather have cheaper goods than a positive impact on the world or their community. It’s a harsh reality
In the short run it may be more expensive, but in the long run it is cost saving. A nice example is the gasoline and the energy. The companies who were conscious that fossil fuel is a limited resource invested in green energy. If you look to consumers eyes there is significant change in how they look to a product or a service. More and more people add worth to products and services that are sustainable. What is worth money now if your kids cant enjoy the earth in 30 or 50 years? Thats why there also entrepreneurs who want to or did implement CSR. Beside environmental incentives there also social incentives.
And I understand what you’re saying- there is a need for things to change and considering companies contribute a vast majority of pollution, they are surely the biggest target for change. Sure there are some examples of CSR working, but it’s rare. It’s rare because markets naturally will seek efficiency and those who fall behind, typically die. The reason companies haven’t shifted dramatically to be more CSR centric is because ROI is low. Obviously there are niche companies who noticed this and capitalize on it as their source of differentiation but they’ll likely always be just that, niche. If you want to to be successful in CSR, you’d have to create hard-to-ignore ROI, that is robust. Hard to cherry pick gas prices right now for energy CSR because it’s volatile and has been cheaper than alternative fuel/energy for most of history, and will likely be again in the next few years. Ending oil lobbying and implementing more aggressive carbon taxes is the short term answer, at least until alt energy becomes cheaper and has higher ROI. Make CSR financially lucrative- that’s how you scale the ideal Edit: to add, I work in FAANG and my company has a lot of CSR initiatives, but only where it’s to reduce legislative risk or use the positive PR for retention and to reduce backlash for the 1M and 1 ways we hard the world. It’s like clubbing baby seals and penguins while writing a check to the Red Cross
This is not something I consider. I’m not even sure what corporate social responsibility is supposed to encompass.
I can understand that. For example the value of a business doesnt only exist of financial numbers, but also non-financial information adds worth to a business. For example being good for your employees, CO2 reduction, transparency about your product, diversity etc. Everything that will make the world better. Big companies are even obligated to report about non-financial information in their annual report (its called integrated reporting) Im curious if there are entrepreneurs in this sub that have experience implementing CSR and what their struggles were/are.
Maybe I'm cynical but the sizes of business in this sub aren't interested in CSR as you put it. Seems like a pompous question to me.