CSR, a driver of cost reduction
Despite the adoption of CSR by many companies only a few do it well,
and even fewer know how to effectively leverage their CSR strategies and
initiatives with their stakeholders-customers, shareholders, suppliers,
and employees according to a study conduced by STING Consultants on
These companies are missing significant opportunities to build
corporate brand reputation, talent management, and even cutting costs
during times when companies have no discretionary spending, according to
CEO of STING Consultants Ruchi Gunewardene said, “the challenge that
managers have is to add value to the business without investing any
money. And, our feedback to several companies highlighted how they can
capitalize on their CSR activities by offering practical suggestions on
leveraging them internally and externally.
The adoption of a strategic approach to CSR actually enables
businesses to reduce costs as well as risks whilst creating new
opportunities for them, resulting in building their businesses and
motivating employees in these difficult times.” STING Consultants have
been presenting their findings to several companies including CTC, Eagle
Insurance, Brandix, Unilever, People’s Leasing and MAGA Engineering with
considerable positive feedback.
“To maximize the effectiveness of CSR, businesses must first identify
their stakeholders and establish a mechanism of engagement with them.
This requires a level of transparency to be developed by the
Reputed companies adhering to this approach achieve this transparency
and accountability by showcasing their achievements as well as their
impacts, by publishing a sustainability report,” said Gunewardene.
The Global Reporting Initiative (GRI) based in the Netherlands offers
a globally applicable sustainability reporting guideline for
organizations to follow, which can be accessed on the web.
According to Gunewardene, this is aimed at assisting organizations in
setting out a structured process for the company, culminating in a
report which can be used to track performance over time.
Many of the world’s leading companies have declared their voluntary
adoption of these guidelines, with a few Sri Lankan companies having
also set themselves up to do so.