From tackling climate change to addressing social inequities, corporate social responsibility (CSR) is more urgent than ever. But especially for large, multinational organizations, systematically integrating these critical social, environmental, and ethical concerns into everyday business operations can pose substantial challenges. Many companies have built dedicated CSR departments to drive these efforts — and yet our recent research suggests that a strong CSR department does not necessarily indicate effective implementation.
What a Mature CSR Team Looks Like
Successful implementation happens when responsibility is decentralized and functional units are empowered.
November 16, 2022
Juan Moyano/Stocksy
Summary.
As climate change, social inequities, and other critical issues grow ever more urgent, many companies have built dedicated departments focused on corporate social responsibility (CSR). But while this is an important first step, the authors’ new research suggests that organizations with the most mature CSR programs are often actually those with the smallest CSR departments. Based on an in-depth analysis of several Swiss firms as well as a review of prior research on CSR implementation, they identify a three-phase process through which many companies progress as their CSR operations advance from high-level vision to on-the-ground impact: A nascent stage in which the CSR department centralizes and coalesces, an intermediate stage in which it decentralizes and orchestrates, and a final stage in which it retreats and consults. Through this process, resources shift from the central CSR team out into functional units, meaning that the size and budget of the CSR department is often a poor indicator of the maturity of its CSR execution. To paint an accurate picture of a company’s performance — and to identify opportunities for improvement — the authors ultimately suggest that it’s essential to recognize these nuances and calibrate expectations and evaluations accordingly.