Corporate Social Responsibility: Green Facade or Genuine Commitment?
Christopher Wickert is Professor of Corporate Social Responsibility at the School of Business and Economics and Director of the VU Business & Society Knowledge Hub. He is also research director of the Department of Management and Organisation at VU Amsterdam. His research focuses on corporate social responsibility (CSR) and corporate sustainability, as well as the broader relationship between companies and society by using different currents within organisational and management theory.
Author: Mika Linse
Both companies and governments are expected to engage in corporate social responsibility (CSR), paying attention to the environment, their employees, and wider society. Although companies present themselves to be greener than they actually are, there is an upward trend of companies adopting good CSR policies. "More and more transparency is being demanded and the legislation on CSR is becoming increasingly strict. But we're not there yet," says Professor of Integrity and Quality Rob van Eijbergen.
CSR has become an integral part of the business world. At the same time, many developments are taking place, as Christopher Wickert, Professor of Corporate Social Responsibility, also observes: "You notice that it is a trend that is becoming increasingly important. This is largely linked to the climate goals that companies are currently obliged to report on. There used to be more self-regulation by industry, also known as soft law, but that has now fundamentally changed." Rob van Eijbergen adds: "CSR has also become an integral part of the labour market, especially for the younger generation. This generation places different demands on companies and employers than, for example, people from Generation X and attaches importance to them when considering a workplace. For example, flexibility is of paramount importance, as is sustainable transport and the possibility of unpaid leave."
Legislation an obstacle to good CSR policy
As a company, you are constantly confronted with new challenges when it comes to corporate social responsibility. Van Eijbergen sees the legislation as one of the biggest obstacles: "The current legislation is not geared to the needs of society. For example, I live on a houseboat in Amsterdam and wanted to install solar panels. After a lot of resistance, I even had to approach the alderman of Amsterdam to get permission to install solar panels on my roof. This kind of opposition, bureaucracy and complexities are also stumbling blocks for companies. Moreover, there is still a generation that prioritises profitability over sustainability, resulting in short-term policies. This mentality is slowly starting to change, but companies are confronted with this." Wickert agrees: "The reality is that sustainability costs money. From one of my studies, it appears that creating enthusiasm for corporate social responsibility within a company is a significant challenge in functional departments where the CSR policy is ultimately implemented, such as procurement, production, and finance."
"The current legislation is not geared to the needs of society"
Involve the younger generation
What do you do if you want to communicate transparently about your CSR policy but are concerned about possible accusations, such as falsely claiming a green image? According to van Eijbergen, a long-term strategy is important to strengthen your sustainability claims. "It is important to involve your employees in this and jointly create a vision of what we want to work towards. Often, change is in the small details, and I strongly believe that rewarding employees in a variety of ways is an effective strategy. This can be achieved, for example, by providing space for volunteering and by implementing flexible travel policies. Involving younger employees is of great importance, as they often have fresh and sharp ideas on this topic." According to Wickert, greenwashing poses a significant problem, especially for companies genuinely engaged in sustainability. "This is because greenwashing erodes general trust in companies and gives space to companies that pretend to be sustainable when they actually aren't. I therefore think it would be wise if a good CSR policy is made mandatory by the government and if stakeholders have the opportunity to publicly monitor this policy."
"Successful companies are characterised not only by the best customers, but above all by their ability to attract and retain the right employees"
CSR in the future
With a society that is becoming increasingly aware of the impact of companies in their environment, CSR will play an even more important role in the future. Both van Eijbergen and Wickert see opportunities in this. Wickert explains: "I think there is a strong desire in society to act more sustainably. In my opinion, it is important that we stop focusing on the business aspect of CSR and rather ask ourselves what the ethical argument is. So we need to look at how we can make companies more sustainable without it being dependent on a direct increase in profitability." Van Eijbergen sees opportunities especially when it comes to labour market issues: "It is important to understand what the new generation of employees wants. Successful companies are not only characterised by the best customers, but above all by their ability to attract and retain the right employees."
Rob van Eijbergen is Professor of Integrity and Quality at the School of Business and Economics. He holds a PhD in Organisational Change from Leiden University. As a leading academic in the field of Ethics, Governance and Society, his expertise lies in exploring the ethical dimensions of diverse organisations and their impact on society. His research focuses on understanding and promoting integrity within organisational structures and processes.
SHARE THIS PAGE
