A major new survey from the Economist Intelligence Unit (EIU) suggests the vast majority of US business leaders now accept there is a clear correlation between CSR performance and financial performance.
Drawing a clear link between strong environmental and CSR performance and increased sales and profitability has long been a vexed topic for many CSR professionals who have struggled to put a financial value on related benefits such as improved brand power and staff morale.
However, according to a survey of more than 550 senior US executives carried out by the (EIU), 74 per cent now accept the argument that responsible corporate citizenship, including strong environmental policies, can help increase profits at their firm.
Respondents also identified financial benefits as the top drivers for adoption of more responsible corporate citizenship, with 16 per cent claiming the top motivations for such policies was revenue growth, a further 16 per cent claiming they aim to increase profits, and 13 per cent claiming the main goal is to reduce costs.
The research showed that this managerial support for CSR initiatives extends to board level with nine out of 10 respondents saying that a board-level executive was responsible for corporate citizenship initiatives and more than one-third claiming the chief executive sets the direction of CSR strategy.
"US companies increasingly take a holistic approach by making the business case for corporate citizenship," said Kim Andreasson, senior editor for industry and management research at the EIU. "And that is especially relevant in an economic downturn."
However, while CSR is securing significant managerial support, this is yet to translate into concrete commitments at many companies.
The survey also found that only 28 per cent of respondents would characterise their strategy as proactive, despite the wide acceptance that firms that instigate CSR initiatives ahead of regulatory changes or customer demands secure the largest financial benefits from such measures.
Moreover, less than a fifth of firms surveyed said they invest more than $1m annually in corporate citizenship measures, although almost half of respondents expected their level of investment in such initiatives to rise over the next five years.
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