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How handing something back boosts bottom line

 

Is the growth of CSR driven by corporate altruism or a belief that it makes good business sense? Or both? David Faers reports...

Let's get something straight right from the start. Corporate social responsibility is not just about showing that you care, although as Pro-Help chairman Simon Littlejohns is quick to point out, there is nothing wrong with that.

CSR, as it is known, also makes very good business sense - and that view is shared by many businesses in the West Midlands.

Their CSR programmes are driven by the bottom line because what they do - and why they do it - reflects on the financial status of the firm, influences investment and contract decision, and plays a part in attracting the right kind of talent.

"It's quite simple," says Mr Little-johns in his role as head of the Business in the Community initative which provides pro bono professional services to community projects across the city.

"Any business that fails to recognise its role in the community in which it operates is taking a very blinkered and short-term view of its overall business plan."

According to Mr Littlejohns, a growing number of businesses in the region are waking up to CSR and that is where ProHelp comes in, channelling services from the city's professional community to community projects with little or no budget.

"For the participating firms, there are many benefits to be reaped," says Mr Littlejohns. "Not least is the bonding effect that working on such projects can have on staff morale."

That statement chimes with Peter Maskell, chief executive of Birmingham-based BHSF, one of the oldest names in healthcare.

Staff there are ancouraged to take part in a variety of CSR projects - mainly fundraising and volunteer work - where they can make a real difference and develop key skills such as planning, organisation, time management and team working.

These activities form part of each individual's personal development plans and the company believes that, as well as showing the community that they care, CSR offers real commercial advantages.

Such as? Mr Maskell reels off a list that includes networking, raising company profile, staff development, motivation and morale.

Last year, more than 100 BHSF staff clocked up a total of 1,295 hours - both company and personal time - on everything from a corporate fundriser for St Basil's homeless charity to reading support and computer training for schools.

Staff at law firm Hammonds are equallly keen to do their bit on the CSR front, clocking up more than 1,000 hours of volunteering and free legal advice over the last 12 months.

The giving gets a turn in the publicity spotlight when National Pro Bono Week comes around - this aims to raise awareness of the service which aims to help those who fall outside the legal aid system and don't have the funds to pay for legal help.

But, as Ian Forrest, head of the law firm's Birmingham office, is quick to point out, CSR is something that goes on throughout the year.

Employees at Hammonds have given up their time to take part in a wide range of Business in the Community-related projects that range from weekly reading, mentoring and number programmes at schools in deprived areas through to restoration projects of communal gardens.

Hammonds' partners have also made financial contributions through the firm's charitable trust.

Every year, tens of thousands of pounds are distributed either through independent donations or through sponsorship of employees' charitable activities.

"We believe it is important to give something back to disadvantaged communities and are pleased to able to take part in charitable initiatives not just in pro bono week but throughout the whole year," says Mr Forrest.

The good work is beyond doubt but is there a danger that some companies are merely jumping on the CSR bandwagon?

Yes, according to Harvey Mansfield, director of the Birmingham Foundation, the local charity that supports and funds hundreds of inner-city community projects each year.

"There is a tendency for companies to jump on the bandwagon without having the desire or commitment to truly support local communities in a genuine way," he says.

"They just want to be seen to be doing. Having said that, there is no doubt that the support offered by many firms has improved the quality of life for thousands of people.

"The benefits are there. Respect is gained from local people and the firms are seen as more valued assets for the area."

Potential clients and recruits are cited by ProHelp's Mr Littlejohns as equally important fans of an active CSR policy.

"Major corporations and many public sector organisations are now seeking a clear statement of CSR aims and objectives when talking about any new business proposal," he says.

Paul Cox, operations director at Telford-based waste management specialist WastefileUK, nods in agreement. "Corporate social responsibility is playing an ever-increasing role in the success of Midlands' companies, due to both the pressure of legislation and a duty to society," says Mr Cox.

"The unveiling of the economic, social and environmental impacts of a business' operations through transparent figures and reports is now vital for its profits and reputation.

"The handling of waste, for example, will soon have to be documented in every company's operating and financial review under plans from the Department for Trade and Industry. "In most cases though, environmental performance is already in great demand by stakeholders as an important factor in making their decisions about buying its products, buying into the company and doing business with them in the first place.

"A company's commitment to the policy could also contribute to its success under the growing influence of indexes such as the Corporate Responsibility Index and the FTSE4good.

"Those who are able to make CSR part of their operations will be best positioned, not only to fulfil their social and environmental obligations, but will also be able to demonstrate their corporate clean hands with enhanced reputation and high placing in the indexes." ..SUPL:

 

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