With plummeting oil prices, the mining industry facing sustained low prices, high costs and economic turmoil and the world economy looking scary, many firms are taking close looks at budgets and cutting far and wide.
When budgets get tight CSR is often at the top of the list for cuts.
Sometimes this makes strategic business sense. Sometimes not.
When CSR is at the top of the cutting list it may be because that makes the most sense, given all of the other constraints and issues the company is facing.
After all, the business does need to survive financially if it is to be able to produce value for society. A bankrupt or shuttered business produces few benefits for society or shareholders.
Sometimes CSR is at the top of the budget cut list for the wrong reasons. This isn’t good for shareholders or society.
I’ve found two main reasons that CSR can be wrongly placed at the top of the budget crunch cut list. After this I’ll list twelve strategies for addressing CSR when budgets are getting cut. They are mostly about CSR and value so are good practice at any time..
Company CSR leaders were not effective at internal communications and helping internal stakeholders understand the strategic and shareholder value of CSR (see Seven proven ways to engage internal CSR stakeholders http://linkd.in/1z7vQN7
for more discussion on how to do this).