focus on corporate sustainability

Prepared by AmCham member

Best CSR projects

are employees ideas
Corporate Social Responsibility is an elegant illustration of the examples. Disregarding the direc-
close connection between external and internal communication. tion a company wishes to pursue,
it remains an admirable feat for
On one hand, corporate philanthropy contributes to enhancing an organization to own such a

a brand and its reputation; on the other hand, it creates a certain
corporate atmosphere. And it is the correct setup of a team that
forms the basis for success of a CSR activity.
We have seen large numbers of
CSR projects lately. Companies
are openly discussing project
cost effectiveness, target groups,
and estimating their impacts. This
means that corporate philan-
thropy has become a legitimate
tool for building reputations. Of
course, we are still referring to
volunteer activities conducted
for the benefit of others, without
expecting financial returns or
advantages.
CSR activities are perceived
to have a positive influence on
a companys reputation and
the value of its brand. A study
conducted by the Reputation
Institute, titled Global Pulse 2008,
mentions an interesting paradox.
The value of a brand or reputa-
tion is said to be influenced
more by CSR activities and the
organizations overall governance
than the quality of products. All
of us have probably experienced
situations where we felt let down
by our love brands, but that did
not make us give up on them.
You will watch your favorite TV
channel even if you didnt like
what it had to offer last night.
That is why companies devote so
much attention to transparent and
ethical behavior, to investments in
environmental protection and the
support of good causes.
The Reputation Institute of-
fered yet another interesting
perspective on a companys
philanthropic activities. The most
admired US managers are those
whose names are, beside busi-
ness success, also connected
to philanthropy. A companys
reputation rests on mainstays
such as products and services,
innovations, work environment,
leadership style, CSR, results and
visions. The role of an organiza-
tions top managers should be
the clear communication of those
mainstays of reputation that relate
to them directly: results, CSR and
visions.
Another recent report by the Rep-
utation Institute evaluated the im-
pact of individual CSR attributes
on overall reputation. Among
the top-ranked values were the
treatment of employees, protec-
tion of the staffs health, and
product safety. Lately, a corporate
approach to environmental issues
can be seen rising in these rank-
ings. A proportionally identical
influence on a companys percep-
tion is exerted by local community
support programs, responsible
marketing and advertising.
A companys reputation today
increasingly depends on the
handling of environmental issues.
This is confirmed by the results
of a consumer behavior study
performed by KPMG. Reacting to
the question examining prefer-
ences for buying responsible
products, every second respon-
dent gave a positive answer. The
handling of environmental issues
is today reflected in many areas:
customer service, relationships
with suppliers and employees
and, of course, the products
environmental impact. The com-
program. Just consider volunteer
activities. Save the Tatra Moun-
tains! Help lonely children!
Adopt abandoned animals! All
of these are strong challenges.
panies responsibility towards the However, they are not always
environment now plays a key role capable of raising the enthusiasm
from the perspective of customer of sufficient amounts of people to
expectations. That is why we fre- become truly beneficial.
quently hear about concerns such
as reduction of emissions and Maybe a system that kept issuing
energy-saving technologies. directives for the people for over
four decades is still reflected
Corporate philanthropy begins in their motivation. Corporate
with identifying a projects target philanthropy professionals say
group. Practice shows that that by looking at a staffs attitude
well-defined principles must be towards philanthropy, you can
observed when launching and judge an employers overall
maintaining a dialogue with a corporate culture. It takes a
target group. A grant program long time for employees to stop
or other support system must be regarding volunteer activities as
governed by clear and generally yet another work-related task.
understood rules. Beside ensur- In this process, its important to
ing the programs transparency, highlight the positive examples of
they also contribute to managing individual programs, the engage-
expectations. A philanthropic pro- ment of individuals and the overall
gram requires adequate financial education regarding volunteerism
and non-financial resources and and corporate philanthropy.
an appropriate form of dialogue.
Fortunately, there are many Experience shows that if an initia-
professionals in this area who can tive comes from above, it might
provide the necessary guidance. not turn out to be a success. A
good CSR program must have
An effective CSR program should its roots among those who are
be based on the companys over- expected to implement it. As long
all strategy. Comparing todays as CSR programs are carried
situation with a few years ago, its out by volunteer groups, initia-
clear that a respectable amount tives are promptly taken up by
of work has been done by Slovak informal leaders who become the
companies. Private as well as advocates of ideas, and thanks to
state-run companies, and even whom the program gains accep-
many local governments, have tance among employees, inspires
by now managed to specify the their enthusiasm and increases
philosophy of their CSR activities. their engagement. And that is,
Many programs show that a lot after all, the goal of all socially
may be achieved even without responsible companies.
large amounts of money.
Ivona itn, DELL, s.r.o.
A quality CSR program is Corporate Communica-
demonstrated by many real-life tions Manager

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december 2008 / january 2009 amcham connection