What Will Happen to CSR Investment in a Recession?
I am profoundly cynical about surveys such as this one , which purport to show that consumers will continue to support socially and environmentally responsible brands and companies even as times get tough.
The problem, of course, is that what people say they are going to do does not necessarily align with what they actually do. It's not that they lie, exactly; but when they're asked to think about their future behavior they tend to think about an idealized version of themselves in idealized circumstances, and predict more noble and altruistic behavior than is likely to occur in real world conditions. Marketers who stake their future on what consumers say they are going to do are therefore almost certain to lose a lot of money.
I suppose I should be equally cynical about the results of this survey , drawn to my attention by Cone's What Do You Stand For? blog, which finds that "80 percent of corporate sustainability executives surveyed from across North America plan to maintain or increase levels of sustainability-related spending in 2009, despite the current economic conditions." Perhaps they too have an over-optimistic view of their own nobility, or--more to the point--the nobility of their companies.
But I suspect that many if not most of the companies responding positively to this survey will in fact maintain their commitment to social and environmental responsibility, for pragmatic business and public relations reasons. First, because environmentally sound stewardship is now seen by many as economically beneficial: green policies reduce waste and lower costs. And second, because the public--or at least a significant cross-section of it--is likely to look unkindly on companies that backtrack on progressive policies.
Consumers and other stakeholders today demand an authentic commitment to social responsibility: they won't tolerate lip service, and in an era of increased transparency, they are quick to identify any company that talks the talk but doesn't walk the walk. Any company that believes it can ignore its social responsibility commitments in tough times, and resume them when conditions improve will be regarded--quite rightly--as insincere, and will pay the price in terms of reputation.
