Tips from a CSR expert: A guide to corporate giving

Traditionally, the global development community has looked upon corporate social responsibility programs with a certain degree of skepticism. Too many companies, critics argue, have used their corporate donations to atone for — or distract from — harmful and unethical business practices. Corporate giving has proven an easy way to counter the claims of activist groups and can help rebuild public trust when a company is under fire. Corporate giving can also help avoid costly new regulations by assuaging politicians and their constituencies. Even if a company is on good terms with the public, associating with a good cause is a relatively cheap way to bolster a company’s image or advertise among niche groups. Based in Brussels, Belgium, CSR Europe — a European business network for corporate social responsibility — is trying to change this perception. Although he freely admits its faults, it is Executive Director Stefan Crets’ job to promote the practice and he believes that CSR programs can be a win-win for companies and the societies where they work. Advancing brand values while ‘doing good’ Crets joined CSR Europe nearly five years ago, after turning around motor manufacturer Toyota’s CSR program. When he first joined the Japanese company, he couldn’t believe how arbitrary their corporate giving was. Rather than give to causes that were related to Toyota’s business, they were making ad hoc contributions to carnival celebrations and martial arts clubs. During the next eight years, Crets turned this random giving into a strategic program that advanced Toyota’s brand values while “doing good.” This is the standard that he wants to set for his members at CSR Europe. CSR Europe’s mission is “to connect companies to share best practices on CSR and innovate with peers to shape the business and political agenda on sustainability and competitiveness in Europe.” Translation: They are essentially a membership-based lobbying organization. Except unlike many of their peers in Brussels, they have a social purpose to “support smart, sustainable and inclusive growth in Europe.” They shape and coalesce the views of their 65 multinational corporate members and 39 national partner organizations. When they meet with European policymakers, they represent over 10,000 of the most important companies active in Europe. Rather than relegate CSR to the sidelines, Crets wants to integrate it into the highest levels of corporate decision-making. When done right, he said, CSR programs are a win-win for companies and the causes they support. “Doing it right” means being authentic; corporations shouldn’t pretend to be something they’re not. Businesses are profit-driven organizations, not philanthropies. The best CSR programs are candid with the public about the relationship between their giving and their corporate values and interests. Authenticity is key to building trust between hostile member corporations and civil society groups. For companies in the extractive industries like oil and gas for instance, transparency about the purpose of CSR programs and how and how much they spend is the first step to repairing relationships. Advice to NGOs: ‘Make a business case’ Finding a corporate partner can be tough work for nongovernmental organizations since development professionals and CEOs don’t usually cross paths. For this reason, Crets considers CSR Europe a low-profile matchmaker, connecting corporate members with NGOs that fit their needs. But Crets cautioned against just pitching your organization or cause. “Make a business case instead. Show how your organization or cause aligns with the values and interests of a specific industry or company,” he said. His members are also typically interested in NGOs that are Pan-European since most corporations are operating at a European level. While corporate resources for CSR programs are tighter in Europe since the recession, they are also increasingly important to society. NGOs should know that the increased demand and limited resources have made “smarter and more strategic” giving that much more important to his members. Increasing governmental interest CSR is no longer a topic reserved for corporate boardrooms. Leading governments and international institutions have increasingly recognized the vital role of the private sector to address development challenges from climate change to poverty. Although Europe has been slower to jump on the bandwagon, Crets thinks this is changing. European policymakers have integrated parts of CSR Europe’s Enterprise 2020 Strategy into their policy documents. And as we reported in 2014, the European Commission’s Agenda for Change represents a paradigm shift in relating to the private sector as partners in development. This fall in New York, the private sector is also expected to become a major player in the United Nations’ post-2015 agenda. Given the changes underway, CSR and organizations like CSR Europe are likely to become much more prominent in development circles, both in and outside of government. Check out more insights and analysis for global development leaders like you, and sign up as an Executive Member to receive the information you need for your organization to thrive.