Social projects are still in business

Corporate social responsibility programmes are still viable despite the recession, and are just as important for some firms as customer service, quality management and a value-for-money ethos

WITH THE recent downturn in the economy, talk of cost-cutting and savings is in the air. However, it seems that for many firms, investments in corporate social responsibility (CSR) projects are still on the agenda.

Experts readily point out that there is much more to CSR than writing a cheque for a local community group or initiative. It is mostly viewed as a way of doing business, rather than a method by which corporates can salve their social conscience.

Tina Roche, chief executive of Business in the Community Ireland, says while community involvement can play a part, CSR is about responsible and sustainable business practices. This can range from environmental initiatives such as IBM's reusable packing, to embedded volunteer programmes.

These efforts can have a knock-on positive effect for the company in question, through reduced costs, improved records in areas such as safety, and a better perception on the part of the general public and potential employees. It can also help build skills in employees, and a healthier work-life balance can attract employees to the firm - and help retain existing ones.

Combining both community involvement and business goals was the top priority for construction materials group CRH. Last year it teamed up with the Simon Communities of Ireland to help finance the provision of rehousing and emergency accommodation services across the entire island of Ireland, tied in with a safety incentive for CRH workers.

Under its scheme, the company makes a donation for every one of its sites that remains accident-free for a three-month period. Should the site remain free of accidents for the year, CRH will donate an additional 25 per cent. The programme has just finished its first full year.

It's been a lucrative one for the charity. According to CRH, some 65 per cent of its locations were accident free for the entire year, with a further 75 per cent making it to the nine-month mark. It added up to a donation of €777,000 for the Simon communities around the country.

Despite the downturn in the construction industry, CRH has said it will still continue its programme. Regional managing director Donal Dempsey says the company had made a commitment to the project for three years, and intended to fulfil that promise.

"I think CSR is part of the management mix that successful companies use to generate good performance," he says.

"It's up there with good customer service, quality management, with the whole 'value for money' ethos. I think CSR is an important part of that," he says.

"I think having that component in the management mix contributes to running a business well. Economic cycles rise and fall and one has to trim one's sail according to the economic climate that's out there. But I would not be abandoning CSR. We're not making any knee-jerk reaction."

Roche says that an economic downturn can take the pressure off a firm and instead provide staff with increased opportunities to volunteer and gain new skills that can be used to the firm's benefit at a later stage.

"Some companies do it because they want to engage their staff in training that they won't get on the job. You're trying to grow your staff and give them experiences," she says.

"When they go out and they are helping community groups, they are building all of those skills that you know are needed in a multi-tasked society."