IBM Survey Says: Corporate Responsibility an Opportunity

By Greg McNevin

March 11, 2008: According to a new IBM survey, corporate responsibility is now seen as an opportunity for growth rather than a regulatory compliance burden or philanthropic pursuit.

Conducted by IBM’s Institute for Business Value, the global survey of 250 organisations (30 percent of which are situated in the Asia Pacific) found that 68 percent of organisations focused on generating revenue through Corporate Social Responsibility (CSR) activities.

Furthermore, 54 percent of those surveyed believe CSR initiatives contribute to giving their corporations a competitive advantage.

“Companies believe that being more open with stakeholders and placing social responsibility at the core of their business strategy will make them more competitive, says Matt English, IBM Australia’s Business Strategy & Change Leader.

“Having a strong Corporate Social Responsibility policy is now seen as a ‘must have’ for organisations seeking to attract and retain the best talent. It’s also viewed as a means to gain access to new business opportunities.”

Titled “Attaining Sustainable Growth Through Corporate Social Responsibility”, the report also found that three-quarters of businesses report that the number of advocacy groups collecting and reporting information on them has increased in the last three years. At the same time, the amount of information businesses are providing about the sourcing, composition and impact of their products, services and operations has also increased.

According to English, it is customers and social computing that are driving this trend, due largely to the ability to research and share information via the Internet.

“Everything from concerns about climate change, to product safety issues, to labour practices, to corporate financial accountability and questions about whether corporations are returning enough of their profits to the community are becoming top of mind with all kinds of consumers,” says English.

“The more information these stakeholders get, the more they want to know. This increased visibility of corporate behaviour is driving consumers' decisions on what to buy and who to buy from, who to work for, who to partner with, where to invest.”

English says it is not only critical for businesses to keep up with the emerging demands of their stakeholders, but to build CSR into the core of their business strategy so it is not seen as a discretionary cost, but an investment that will bear fruit.

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