Corporate Social Responsibility – An Opportunity For Business and Social Change

by Lucy Garrick on Friday, July 16, 2010

In a recent conversation with colleagues about Corporate Social Responsibility (CSR) the discussion turned to where that function should reside in an organization.  The question being asked was should it reside in Human Resources or Marketing.  For me, this question puts our focus in the wrong place.  Being overly concerned about where the functional aspects of CSR lie within an organization  may be less important that connecting its purpose with the mission and values of the organization.  Companies that understand CSR as a branding tactic miss opportunities for themselves and the impact they can have on society.

CSR is a commitment to not just environmental sustainability but to economic sustainability and making positive social change. We call this “social innovation,” the ability to apply business innovation thinking (which many companies are not so good at applying to their core businesses) while addressing social needs.  Social innovation can fuel market growth and create an economic engine capable of sustaining social change, creating  jobs and improving local economies — businesses, nonprofits/NGOs and communities benefit.

Nike’s work for women’s breast cancer is an excellent large scale example of social innovation. They devote a good deal of money to sponsoring an athletic event to raise money for this cause – because it fits with their business of athletic gear.  Sponsoring this event, led to them create a new line of women’s sportswear for Muslim women,  which, in turn, provided the opportunity for Nike to open a new market and for Muslim women to cross a cultural divide related to exercise that will lead to better health.  The key was that the business involved the social group being served in shaping the business opportunity for social change.

Curious Kenyan children check out a laptop computer at the CTC

A small scale example is the Computer Technology Center (CTC) at The Thiiri Center for Culture, Music and Community Development in Meru, Kenya co-sponsored by Africa Circle of Hope.  A business innovation team at Microsoft helped to co-sponsor its opening and provided education on technology as well as business entrepreneurship for the local community members.  The CSR function at Microsoft couldn’t grasp this opportunity because their function was separated from strategic business opportunities.  However, one traditional Microsoft product marketing unit saw the opportunity to bring small business computing to an emerging market. With the help of a social innovation facilitator,  the people of Meru continue to receive educated on technology use how to start small business using local community assets.  After learning and becoming more proficient with technology, they are now beginning to consider ways integrate the CTC into their larger mission of the Thiiri Center,  preseving their cultural heritage.

There are unlimited ways to connect social innovation and business innovation.  The key to long term success for both parties is community involvement wherever possible. If businesses limit their CSR thinking to brand protection or human relations, they also limit the benefits for themselves and the societies that support them.

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