Have we reached a peak of CSR action or rhetoric?

Corporations embrace CSR, at least in part, out of a sense of self-interest and public relations. Do the PR aspects of CSR matter, if corporations alter their behavior for the better? I personally generally take the approach that the "perfect can be the enemy of the good." However, there are certainly reasons to disagree: NGO co-option, corporate speech dominating the debate about what responsibility means, letting local and foreign governments off the hook for failing to monitor or legislate human or environmental protection to name a few. While the buzz around CSR is intense right now, there is room for more discussion and there still industries and regions, which can benefit from even considering environmental, human rights, and other social issues. The key challenge is to turn CSR into corporate actions and corporate obligations.

1. Have we hit the peak of CSR rhetoric? No, but
2. Has the discussion and buzz led to change? Yes, but
   
3. Are there reasons to be optimistic or cynical about the future of corporate actions? Yes
4. Conclusion, already?
   

I love posing these sorts of big questions and then realizing I have no idea how to answer them. But hey, why not try?

1. CSR buzz has a ways to grow

CSR buzz is huge: Corporations from Shell to Nike to RBC to have CSR sections of their websites and they report on their corporate responsibility actions in various formats. CSR is all over the news (A recent(30/4/2007) Lexis-Nexis news search showed 754 results from the last 14 days and 2972 for the last 60 days versus 387 and 1428 for 2004 versus 185 and 755 for the same periods in 2001. 78 and 260 for 1997.) These searches do not even include the massive amount of web publishing that relates to the topic. See publications below. The International Herald Tribune has a Green Blog highlighted on its homepage and

Youtube only has a few examples of pedantic videos, governments are just catching on and there is lots of room for conservative politicians to make hay out of "responsibility." Even Canada's Conservative government is likely to jump on the CSR bandwagon and take the recommendations of the CSR Roundtables on the Extractive Industry in Developing Countries. So there is lots of buzz but will this lead to change?

2. CSR changes things but we are a long way from Corporate Obligation

Corporations are conscious of the business case for CSR and they are definitely conscious of the need to pay lipservice to the cause. Corporations are making efforts to offset carbon emissions and set out corporate codes of conduct. For example: Shell, Walmart, Bombardier.Bombardier recently applied their code in dismissing a senior employee.

These codes and many voluntary initiatives do not create rights for stakeholders outside of the firm: NGOs, governments, communities. This means that corporations can get away with a lot, without incurring legal liability (Walmart's Labour practices or Bank's that sign the Equator Principles).

3. Is Optimistism about CSR changing corporate behavior justified or is CSR ready to be stuck with a fork?

The answer is yes. You like that, eh? Or should I say: "It depends on the circumstances, company, industry, country, region...etcetera." There are signs for optimism and cynicism:

4. Conclusion

Shockingly, given that I am writing about this topic, I am still optimistic about the possibility of CSR making corporations better actors. Look forward to a retort, by Christopher Schulz.

Publications of interest

• Corporate Knights
• Ethical Performance Magazine
• Environmental Finance Magazine
• Saint Mary's University

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