CSR: a long-term view

Ingrid Hernández of Mexican consultancy Köst, a Two Tomorrows partner firm, provides her take on how businesses can embrace corporate social responsibility in the decade ahead

The worldwide crisis of values – wherein ethics, transparency and commitment to society play second fiddle to other factors– has led the planet to concocting a different kind of empathy with society. Should public discourse favour more stringent regulations, then companies would have to redefine their business strategies to align them with a stricter regulatory framework.

Job cutbacks, diluted social policy, diminishing dialogue with stakeholders, and the elimination of community programs will lead to stunted company growth.

Corporate social responsibility policy establishes a framework to innovate the financial model as well as a solution to the sustainability challenges a company faces; it presents an opportunity for companies to prove their deep commitment to society. The crisis will serve to do away with inefficient ethics processes, and will lend social meaning to companies and the ensuing demand for greater transparency.

This would be a good time to invest in human capital − the real asset of any given organisation. It would also allow a company to be more successful and better prepared to face difficult times. Companies need innovative leaders capable of mobilizing and creating value for the company during crises and when faced with complex situations.

In light of the present economic scenario, it is imperative to foster specialization in human capital so as to weave a healthy, unwavering fabric that will bind the corporation from within

A crucial aspect is that of the need to innovate and secure a return that will facilitate leadership within the company.  There must be some kind of reward to reap − be it reputation, financial or the retention of talent. This ensures the continuity of corporate social responsibility as the next decade draws near.

Investing in short-term strategies implies breaking away from the process of multiplying the company’s social actions. Nevertheless, to take time to put the company’s activities into systematic order −and thus minimize risk− will improve business efficiency through corporate social responsibility policies and ultimately increase the company’s financial profitability.

Therefore, if we rely on sustainability throughout the coming decade, companies will become promoters of social development and understand that the Social Responsibility market is its key ally in fostering growth.

We must move toward an economic policy that is more socially responsible, while at the same time strive to attain social policy that is responsible in financial terms.

Society’s role as an accomplice in the institutionalization of Corporate Social Responsibility must lead to discourse between private and public stakeholders to delineate a plan for the mid and long-term strengthening of CSR, namely, a coordinated response to be better prepared for the coming decade.  

What are the challenges in the next few years? To ensure that we have the sagacity to retain talent and to choose how and where we invest in human capital; to determine how to interact with other economies and how to regulate the financial sector; to decide how we can find agreement with the sustainable vision espoused by global spaces; to find convergence to secure a genuine commitment to long-term social responsibility from governments, companies, institutions and leaders.

Companies in Mexico demand greater levels of specialization to be better equipped to manage social responsibility. At the threshold of the new decade, we begin to see a demand for this specialization in companies, which will result in a greater commitment to society. The current economic crisis offers a great opportunity to strengthen corporate social responsibility and to be better prepared to embark on the coming decade.  

• Ingrid Hernández is managing director of Köst, the Mexican CSR consultancy and a Two Tomorrows partner firm