We’re seeing the world change immensely during this time of prolonged global crisis. And it seems as individuals we’re changing too. Data shows that the most significant shift in collective thinking takes in the existential threat of climate change. This and COVID-19 mean CSR strategies are fundamentally changing.
COVID-19 and its ramifications have gripped the world. Unprecedented changes to the way we live, work and socialise are generally accepted as necessary given the threat of the virus. But a global survey of 29 countries by Ipsos MORI shows that 71% put climate change on a par with coronavirus as a serious concern.
How does this affect CSR? Well, as corporations work to get back to a new normal, there is much consumer and stakeholder support for the concept of linking this economic recovery to pro-climate changes. People everywhere are looking for ways to live more sustainably, and corporations must react to this through CSR strategies.
COVID-19 shifts priorities for individuals and corporations
Between February and April 2020, Google shows a 4,550% increase in searches for the phrase: “How to live a sustainable lifestyle”. The pandemic has reinforced how dependent individuals are on each other, on corporations and on governments to ensure supplies and infrastructure make it through times of crisis. And with the generally accepted fact that the consequences of climate change are hurtling down the road at humanity, this growing trend towards sustainability won’t disappear when COVID-19 does.
In the UK particularly, the poll shows that expectations and anticipation of major societal changes are now expected by the majority. Just under 70% of British people think that their country will look very different in a year’s time. A fifth of these say they expect profound changes to be made.
And the younger generation are firmly in the camp that believe sweeping changes are inevitable and necessary. A different poll shows that people aged between 18 and 34 are largely in the expectation of big changes camp. So, what are people expecting and what kinds of changes can corporations make to CSR strategies to facilitate it?
Consumers demand change
Around 60% of adults in the UK want companies and authorities to put environmental and social issues above economic growth, according to a recent YouGov survey. The urgent need to increase the chances of health, wellbeing and access to basic essentials is obviously driven by the collective experiences we’ve shared during COVID-19. Critically, it’s not only the public that appear to be shifting their position regarding what matters more to them — the economy or wellbeing.
A survey of finance ministers from countries in the G20, leading academics from the Smith School of Enterprise and the Environment at Oxford University and more than 230 bankers shows vast support for measures that reduce emissions, investing in clean energy and spending on low-carbon solutions.
With plenty of evidence to show how COVID-19 is shifting attitudes across the board, the future of CSR strategies will include a renewed focus on these concerns. At the start of 2020 when COVID19 gripped the world, the focus on CSR as a business strategy increased. It became clear which corporations are doing the bare minimum, and which understood this before the current crisis. Either way, CSR strategies of the future will need to include not only tangible output for environmental sustainability but also social sustainability.
Corporations must shift from attempting to please shareholders first and foremost. CSR now means being accountable to all kinds of groups, including customers, regulators and employees. Business decisions and strategies must consider the impact on every one of these stakeholders.
Even before COVID-19, a Business Roundtable of around 200 CEOs agreed that shareholders should not be the only focus for value created by corporations. So the tide was already turning, but the sudden and total impact of the virus has sped this process up. We can clearly see that businesses that are clearly showing solidarity with all stakeholders before their own economic interest will get through this crisis with more support.
Over the long term, building solid stakeholder trust will help a corporation survive and thrive more than any Government loan during troubled times. Here are 3 ways CSR strategies will change.
1. Compliance will shift to meaningful output
CSR compliance is no longer enough. Effort must be made to live CSR values, not just pay lip service to them. Organisations must go beyond the minimum and prepare in real ways for changes we will face. Among them are likely to be more health crises, biodiversity and global warming.
2. Flexible working will become the norm
A flexible workforce is now a necessity. It’s not just about boosting a corporation’s reputation and making it sound good to new recruits but creating real-life ways to work in a truly flexible way. COVID-19 has forced this to happen, and while it’s obviously not possible for every industry or position, working remotely is useful for support and management roles. Climate change will likely see unstable weather patterns forcing flexible working, and of course, less commuting will mean lower levels of CO2.
3. Corporate responsibility is no longer a ‘nice to have’ extra
Companies with committed and trusting employees can react to crisis situations in more functional ways. A responsible and trusting culture is essential during times of trouble. Creating a strong corporate culture by paying fairly, improving conditions, ensuring management is trusted will all add value leading to a more resilient, tolerant and supportive workforce. CSR has a massive part to play in this during the pandemic, but importantly, in the future too.
When the immediate crisis passes, many corporations must totally rethink they way they operate, create much more responsible cultures and think about long-term challenges. A good starting point is to review the ethics charter and start creating truly fair internal practices. Rebuild the corporation internally, and value will be automatically added.
