Corporate social responsibility (CSR) is affecting businesses across the globe as governments, as well as their customers, force companies to recognise the impact of their commercial activities on the environment and communities.
However, despite the extra burden that comes with having to assess and report on this impact, there are opportunities for companies that comply with CSR regulation.
In our previous article – The Urgent Need for CSR – we examined the nature of CSR regulation and why it is important. In this article, we focus on the benefits of compliance and look at the opportunities, while acknowledging the extra work and cost that comes with it.
A range of global initiatives
In terms of regulation, countries around the world have adopted different approaches to CSR, but broadly follow a similar pattern. The European Union, for example, recently introduced corporate sustainability reporting (CSRD). Several organisations implement the ESG (Environmental, Social, and Governance) criteria to evaluate and demonstrate their positive impact. The concept of ‘Double Materiality’ – sustainability in financial and environment/social areas – has been adopted by many nations, including China.
On top of this, the UN has created 17 sustainable development goals which dovetail nicely with the aims of CSR. This initiative gets managers thinking about business in different ways by producing less but selling more, perhaps through services rather than products.
A time for action
The climate emergency has become apparent to us all in the shape of extreme weather, so there is a compelling reason to act. And big corporations are very significant contributors to climate change.
However, these same corporations stand to benefit once they acknowledge the impact of their activities on the planet and its people. How? Because climate and societal issues affect their businesses too.
For instance, countless companies have ceased trading due a calamity caused by extreme weather, such as a hurricane, typhoon or wildfires. See, for example, the case of PG&E – an electricity supplier in California – which faced bankruptcy after wildfires in 2019.
Therefore, when companies across the planet act to reduce and even reverse climate change, then businesses can prosper instead of perish. It is a long-term vision, of course, but a worthy one.
A worthwhile price
The compulsory requirement to assess impact and report on it is clearly a burden for company bosses. Many organisations are not used to compiling this kind of data, so it is a huge task as well as an expense.
Nonetheless, the aim of the law is noble, and a small price to pay for a healthy planet.
Companies who comply with CSR legislation can benefit in two ways:
- Organisations that are sustainable tend to be more agile in nature. As CSR is directly concerned with risk, then companies who understand risks associated with their activities, as well as impact, will make better decisions.
- Companies that are sustainable will be part of a circular economy, which the European Parliament defines as:
“…a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended.”
Companies that engage in this model will also enjoy preferable access to finance, thanks to international banks who are incentivised to support the green economy above those companies that pollute. An example is the EU’s SFDR initiative. This requires all financial market participants to disclose sustainability data so that investors can make informed decisions.
Cegos impact
While the target for CSR regulations are companies that have the most negative impact on the environment and social communities, those that have smaller impact are not exempt. And that includes Cegos Group.
Indeed, as a service company, we aim to have a net positive impact by promoting and delivering bespoke training that helps companies comply with CSR regulation.
One of our key programmes – Navigating ESG – revolves around Environmental, Social, and Governance dimensions, where we provide a framework for evaluating a company's sustainable and ethical impact in each of the three areas:
- Environmental: Focuses on preserving biodiversity and natural resources for a healthy planet
- Social: Examines a company's societal impact, covering relations with employees, customers, suppliers, and communities
- Governance: Crucial to ethical business practices
It is important to understand that adopting ESG practices is not just about complying with regulatory requirements; it is an opportunity to promote resilience, drive innovation, improve reputation, and create long-term value for all stakeholders.
In addition, Cegos follows 4 CSR axes: Environment, Employer, Societal and Customers.
“To engage its employees, Cegos relies on an internal network of 30 CSR ambassadors”, says Katia Maroufi, Head of quality and Corporate Social responsibility. “These ambassadors are essential to integrate CSR into the corporate culture and motivate all Cegos employees to actively take part in sustainable initiatives. The enthusiasm we encounter is encouraging”.
Katia follows with an illustration of the network’s role: “The Cegos Group recently measured its carbon footprint throughout the world. The CSR ambassadors played a key role in collecting the non-financial indicators, a process usually very complex.”
Over the last 5 years, the Cegos Group has trained over 3,500 people in CSR development and compliance. We believe it is a serious cause that benefits humanity and are proud to play our part.
If you would like to know more about our ‘Navigating ESG’ training programmes or our other solutions to help engage your teams in CSR initiatives, contact us today.
