Corporate Responsibility
essential to business survival

News remains gloomy as the global economy heads toward a protracted recession. Just as corporate social responsibility was making strong headway internationally, corporations and non-profit organizations alike are asking the same question: How can companies continue to embrace a strategy of giving back and being responsible while the economy tumbles?

Indeed, when the dot.com sector collapsed earlier this decade, corporations and foundations had to tighten their belts. This earlier economic downturn badly affected non-governmental organizations across the U.S. and Europe. If the economy falters, how will foundations and non-governmental organizations survive? How will they sustain their missions, especially when private donations and contributions from businesses account form a significant percentage of NGO income?

Companies and NGOs need to understand that corporate social responsibility is no longer a luxury; it is an essential component of a thoughtful business strategy. At a time when customers and investors will be demanding increasing transparency and responsibility from corporations, it would be a critical mistake for corporations to eliminate their corporate social responsibility programs.

On the contrary, in order to survive an economic downturn, corporations will need to sustain their efforts to ensure social responsibility. These efforts must include a commitment to good governance and financial transparency, a commitment to protect and educate their work forces, a commitment to protect the environment, and a commitment to strengthen the communities in which they work.

It goes without saying that an economic downturn will mean tighter budgets and fewer resources for corporate social responsibility activities. However, non-monetary community engagement, such as volunteer programs, board participation and education partnerships can make a modest corporate social responsibility budget go even further. And by engaging staff, businesses can ensure that corporate social responsibility becomes a part of their corporate culture, rather than just a token gesture.

The non-profit sector, which receives funding support from governments, corporations, foundations and individual donors, provides critical programs, including environmental, education, health, culture and other community services that governments either cannot provide or cannot efficiently deliver. By joining the corporate sector in supporting NGO-provided services, governments could actually stimulate communities, create jobs and provide services more cost-effectively than they are able to do on their own.

In order to survive a sustained recession, companies, communities and governmenst must work together. Although companies may not be able to sustain the same levels of corporate social responsibility spending in an economic downturn, it is critical for them to retain a healthy commitment to a corporate social responsibility strategy that includes community engagement. At the same time, NGOs, companies and communities must work together to continue building models of effective community service.

Sourced from Kyiv Post

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