RESPONSIBLE BUSINESS - FOR THE LONG TERM

With 2009 likely to be remembered as one of the most challenging years for business where the focus has been first and foremost on short-term survival, it would have been easy to relegate corporate social responsibility (CSR) projects into the 'not business-critical' category. However, there is heartening evidence that, far from suffering the budgetary axe, many of these projects are viewed as hugely important to a business's health.

In fact, this is a very real opportunity to debunk the notion that CSR is a non-strategic cost centre. Good CSR saves money… offers innovation and insight… and offsets risk. All making it fundamental to the running of every business that intends to succeed.

And what better time to make meaningful drives towards sustainability than when consumers and shareholders alike are reeling from the short-term rush for profit that led us into this recession?

The recession has shaken the foundations of businesses, big and small. The weak have fallen. The strong have been weakened. As companies make cost savings where they can, corporate responsibility projects that generate financial savings are looked upon favourably.

In 2010 the challenge will be to refocus on the long term. There is a growing emphasis on good corporate citizenship, especially on strategies that aim to “do well by doing good”, as firms try to convince the public of their newfound long-termism by demonstrating that their activities are not just making money but are also building a better world.

As executives shape their strategies for 2010 and beyond, one lesson from their recent experience should be clear: unless the business world takes a more sustainable approach, it is unlikely to be long before the next crisis comes around.

Calling for a "new culture of ethics and responsibility", European Commission President José Manuel Barroso stressed the importance of re-building trust in business. He further states that "this is essential - not just to restore the brand image of particular enterprises but to restore people's faith in the market economy itself. People still want markets - but they want markets with a conscience."

There is no doubt that public trust in the private sector and markets have been seriously damaged and it is clear that financial markets' obsession with short-term over long-term considerations has played a major role in destabilizing markets.

By emphasizing long-term environmental considerations, businesses can help play a pivotal role in helping to restore that lost trust. In other words, by demonstrating a commitment to the tenets of corporate sustainability, companies have an opportunity to help markets regain the trust of stakeholders.

It is important to realize that amid this climate, many consumers are making little distinction between the banking sector and the corporate sector. By demonstrating a strong commitment to sustainability, we can actually help the private sector and markets regain the confidence and support of the public.

From a communications perspective, talking about a company's commitment to sustainability actually provides an opportunity to speak positively to the media – something that can be quite difficult in this economic environment. Such positive coverage is like gold dust in this current climate.

The Responsible Business television series explores the role of the corporation in advancing sustainable economic and social development through multi-stakeholder partnerships. The series presents companies demonstrating leadership in adopting these principles throughout their business - not only to improve corporate reputation or increase profits, but because it’s the right thing to do.