CSR enables to reduce costs, risks

Despite the adoption of CSR by many companies only a few do it well, and even fewer know how to effectively leverage their CSR strategies and initiatives with their stakeholders-customers, shareholders, suppliers, and employees according to a study conduced by STING Consultants on Corporate Accountability which was published in the January 2009 issue of LMD.

These companies are missing significant opportunities for building corporate brand reputation, talent management, and even cutting costs during times when companies have no discretionary spending, according to the article.

Ruchi Gunewardene, CEO of STING Consultants said, "the challenge that managers have is to add value to the business without investing any money. And, our feedback to several companies highlighted how they can capitalize on their CSR activities by offering practical suggestions on leveraging them both internally and externally.

The adoption of a strategic approach to CSR actually enables businesses to reduce costs as well as risks whilst creating new opportunities for them, resulting in building their businesses and motivating employees in these difficult times."

STING Consultants have been presenting their findings to several companies including CTC, Eagle Insurance, Brandix, Unilever, People's Leasing, and MAGA Engineering to name a few, with considerable positive feedback.

"In order to maximise the effectiveness of CSR, businesses must first identify their stakeholders and establish a mechanism of engagement with them. This requires a level of transparency to be developed by the organisation. Reputed companies adhering to this approach achieve this transparency and accountability by showcasing their achievements as well as their impacts, by publishing a sustainability report", said Gunewardene.