How science sees the business case for CSR

From the world of research, Andreas Rasche, Professor of Business in Society at Copenhagen Business School, delivers his view on the business case for CSR in 2019.

Andreas Rasche is Professor of Business in Society at the CBS Centre for Corporate Social Responsibility.

01.10.2019

Eva Harpøth Skjoldborg, CSR.dk

What is the business case for CSR today, and has it changed, since we 5-10 years ago talked a lot about energy savings adding directly to the bottom line?

Yes, the business case has changed. The business case is essentially an outcome of firm’s calculations related to risk mitigation and opportunity maximization through CSR-related activities. As both risks and opportunities are dynamic, so is the business case.

For instance, risk assessments depend a lot on litigation risk, which is higher in a lot of areas (e.g. climate and human rights) as firms are expecting tighter future regulations. In some cases, these regula. tions have already arrived (e.g. the Modern Slavery Act in the UK). Also, opportunities are shifting as consumers are increasingly reacting to CSR-related value propositions, which creates new market segments for some firms.

So, the bottom line is this: the business case for CSR has become more comprehensive but also more complex to assess.

What is absolutely essential if CSR is to really help the business? 
I would single out three things:

  1. a professional management approach, reaching beyond project-based initiatives; i.e. an approach that is also anchored in a firm’s governance systems,
  2. the tone from the top; if senior executives and the Board don’t communicate seriously around these issues, it lacks legitimacy and hence it is quickly seen with cynicism by employees, and, most importantly,
  3. you need to have a strong set of supporting values; without it CSR/sustainability become “empty” management techniques that cannot unfold their full potential; values matter because they guide an organization, especially in those cases where business cases are not existing.

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Denne artikel er del af et tema:

I fokus: business casen

Hvad er business casen for CSR i 2019, og hvordan har den ændret sig? Hvad driver egentlig CSR-værket?  

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