Research shows that companies with effective corporate social responsibility (CSR) programs are more profitable than those without. For the past 50 years, companies have relied on programs such as social issue marketing, philanthropy, employee volunteerism, and diversity and inclusion initiatives to build their brands and satisfy customers.
Now, consumers and employees are raising the bar. The killing of George Floyd by a white Minneapolis police officer sparked the largest protests in recent memory, and widespread reaction to standard CSR strategies suggests old best practices may no longer work are doing. Consumers and employees are now demanding more than corporate social responsibility. They want what I call corporate social justice.
Corporate social justice is a reframing of CSR that places the focus of all initiatives and programs on the measurable, real experiences of groups harmed and disadvantaged by society. CSR is a self-regulatory framework and there is no legal or social obligation for companies to actually have a positive impact on the groups they claim to support. Corporate social justice is a framework regulated by trust between companies and their employees, customers, shareholders, and the broader communities in which they interact, all with the explicit goal of doing good. is. While CSR is often achieved through secondary or vanity programs attached to a company’s core business, corporate social justice requires deep integration with all aspects of a company’s functioning. .
The need for this fundamental change has become more apparent in recent years. AT&T received a perfect score on the Human Rights Campaign’s Corporate Equality Index in 2017, but was widely criticized for donating more than $2.5 million to anti-gay politicians that same year. Tom’s, whose one-to-one donation model was widely praised, ultimately scrapped it after it became clear that the donations were disrupting local economies and producers. Amazon recently tweeted a statement expressing solidarity with the Black community. was immediately criticized Due to the sale of facial recognition technology to law enforcement agencies and the extreme underrepresentation of black professionals. (Amazon later announced it would suspend police use of its facial recognition technology for one year.)
Consumers and other stakeholders want companies that see social good as an imperative, not just a marketing strategy. It is up to businesses to meet this new challenge. Here’s how:
Start with your goals and vision for a more just society.
When choosing goals and visions, don’t just choose goals that the CEO likes. Vanity projects are not enough. Instead, develop a thoughtful and intentional process that brings together representatives from various stakeholder groups to determine which issues lie at the intersection of the company’s mission and stakeholders’ unmet needs. please.
The purpose of this exercise is not to reach an impressive goal. It’s about arriving at the perfect vision for your company to help build. For example, the Chicago Community Trust recently set a goal to close the wealth gap between Latino, Black, and white households in Chicago.
Carefully position your company within the broader ecosystem surrounding that goal.
For example, companies seeking to address systemic racism in policing may need to understand the history of racism in policing, the advent of mass incarceration, the militarization of police departments, the relationship between community resources and crime rates, etc. We need to work on it.
Don’t try to distance your company from these analyses. Most companies play a role in creating and sustaining inequality through their supply chains, recruitment strategies, and the customer bases they serve or fail to serve. At a minimum, businesses that include Black consumers in their audience (which should be all consumers) need to understand the historical context that informs their purchases, spending, and engagement.
Build robust and representative working groups that connect the company and stakeholders.
The goal of these groups is to fully explore the impact of corporate actions on various stakeholders and use that knowledge to inform how companies act and respond to society. Proactively provide information. For example, if a company is about to make a public statement about anti-Black racism, the process of rolling out that message may involve reaching out to Black entry-level employees, managers, senior leaders, Black customers, and others with whom they interact. The black community needs to be heavily involved. Use the Company’s products or services.
This effort is challenging, especially in moments of crisis that place additional burdens on the most marginalized. We want all members to be compensated for their participation and have the ability to opt out at any time. When functioning properly, these working groups can inform a company’s strategic priorities, help leaders make difficult public decisions, and respond to pressing current events in a way that resonates with stakeholders. It will be. For employees and external stakeholders, working groups can give them a voice, represent their perspectives in decision-making, and build trust between them and the company.
Please take a stance.
Corporate social justice is not a feel-good approach that allows everyone to be heard, nor is it an initiative that inherently makes everyone happy. The first step many companies have taken by publicly supporting Black Lives Matter through public statements and donations is to confirm their stance, even if it alienates certain groups of consumers, employees, and corporate partners. It is a commitment to take. Companies must decide that they are willing to lose business from certain groups (such as white supremacists or police). Because accepting funds from these groups is contrary to corporate social justice strategies.
Evaluate your progress regularly.
Corporate social justice is an ongoing effort to work with stakeholders to achieve a vision of justice or equity. To build accountability into the process, goals and metrics must be set by work groups and translated into company-wide direction by senior leaders. Although companies are under no legal obligation to meet these indicators, their relationships with stakeholders, especially employees and external communities, are regulated by trust. Continuous failure to achieve goals erodes this trust and undermines the effectiveness of the work group. Achieving goals maintains a company’s reputation, maintains stakeholder trust, and increases the ability of work groups to continue to benefit all stakeholders.
Corporate social justice is a new paradigm that envisions healthier, more mutually beneficial relationships between companies and the communities they interact with. This is being driven by the growing demand from socially conscious consumers and employees for companies, especially socially conscious and forward-thinking companies, to do better. Businesses have an opportunity to rise to the occasion and use their influence to build a better world for everyone, including themselves.