Surveys of International Businesses Reveal Optimism About Transformative CSR

Recent surveys of international business leaders are shining an encouraging light on their perceptions of CSR as an increasingly viable business framework. In 2008 Bill Gates called for more companies to engage in "creative capitalism--an approach where governments, non-profits and businesses work together to stretch the reach of market forces so that more people can make a profit, or gain recognition, doing work that eases the world's inequities." And according to some international leaders, the usual way of doing CSR business just won't do.

In Thailand, Spa-Hakuhodo Chairman Kitti Chambundabongse is calling for companies to implement what he calls "revolutionary--not just incremental--changes in the way we think, live and work," where companies "adapt to reconnect and keep up with our customers." In a column focused on CSR in The Nation, he asserts that companies in Thailand can't assume they know what Thai consumers want, particularly when it comes to the shifts in "their attitude, covering all dimensions of economic, social and political needs."

In other corporate camps, CSR is making a mark as a business strategy that is gaining acceptance. In the Middle East, for example, 75% of companies surveyed seem to think that CSR ought to be acknowledged as a base for company growth. Approximately 100 leaders in eight Middle Eastern countries were surveyed on 'What Regional Leaders in the Middle East Think About Corporate Social Responsibility' by the Sustainability Advisory Group. Close to 86% of them indicated that innovation is spurred by CSR initiatives and 82% think CSR is helpful in pulling in new customers.

A 2009 survey of 224 international business leaders by the IBM Institute for Business Value indicated that 60% of those queried felt CSR had become even more important than the previous year. According to Working Mother Media, the 21st corporate leader is "increasingly being defined by innovative approaches that integrate sustainability and profitability," whereas in the 20th century, the focus was on supplier diversity. There is evidence that CSR is becoming more sophisticated, perhaps in response to more savvy consumers.

To what extent the LOHAS marketplace--a receptive grouping of conscious consumers--echos those optimistic corporate sentiments about CSR remains to be seen, particularly amidst growing consumer concerns over corporate green and social washing that have adversely affected genuine Triple Bottom Line (TBL) initiatives by ethical companies. LOHAS or Lifestyles of Health and Sustainability is a term coined by The Natural Marketing Institute to describe the US market segment that focuses on goods and services related to health, the environment, social justice, personal development and sustainable living. Recent estimates puts the US LOHAS marketplace at approximately $209 billion, representing 19% of US adults, or 41 million individuals. Any company that targets ethical consumers such as the LOHAS segment would be short-sighted not to evolve its CSR practices in alignment with consumer needs.

Stay tuned for future postings on ethical consumer grading of CSR initiatives.