In today’s business environment, organizations are becoming increasingly aware of the importance of embracing sustainability and corporate social responsibility throughout their operations.
In this digital age, organizations have a significant opportunity to engage with stakeholders and share their CSR initiatives and behaviours globally through various platforms. With consumers becoming more socially and environmentally aware, organizations and brands are more motivated to align their strategy and operations with social and environmental implications in mind.
For example, Emirates Airlines attempts to minimize their environmental impact throughout their operations. This includes economy class blankets on long‑haul flights being made of 100% recycled plastic bottles and investing in solar power systems to generate clean electricity at two of the airline’s major facilities – Emirates Flight Catering and Emirates Engine Maintenance Centre. Such initiatives highlight the airline’s commitment to CSR through sustainable operations.
While there is the acknowledgment that consumers are now more attracted to purchase from organizations who are socially responsible, CSR needs to be implemented and managed responsibly. With CSR and sustainability becoming buzz words, there are concerns that it is becoming challenging to tell whether some organisational initiatives are authentic or are being used simply to generate engagement.
Of course, it is an organisation’s priority to make revenue. However, consumers are beginning to lose faith in brands where they perceive causes close to their heart being “used” for profitability. Organizations should not underestimate consumers level of awareness. Consumers can tell when brands are authentic and whether the causes that they champion match the brand identity.
An organization’s internal culture is significant in reinforcing its dedication to CSR and sustainability. When an organization embraces a strong internal culture built on CSR and sustainability programs, it not only improves the wider world, but also benefits employees.
This internal culture also allows organizations to reinforce their marketing communications through providing a consistent brand story. For example, Marriot Hotel’s internal culture is built upon ‘a place where we’re motivated to make a difference in our communities’. Example initiatives include ensuring that 100% of on-property associates complete human rights training by 2025 and investing $35M into programs and partnerships that develop hospitality skills among women, people with disabilities, veterans, and refugees.
These strategies allow Marriot to use their ‘TakeCare’ internal culture to support their wider long-term CSR and sustainability which is at the heart of their strategic outlook.
When CSR is genuine, companies can attract people who share the same beliefs and value systems as those of the organisations. This can help the brand grow and become more profitable. Additionally, employees who work in organizations that share their core values, will go the extra mile to create brand awareness, share the brand’s content, and recommend it as a place to work.
For example, some companies have programs that allow for their employees to take a full paid week to volunteer every year. This is a great way to build culture and the internal brand by showing that the organization cares about what their employees feel strongly about.
While the initial cost of implementing sustainable and socially responsible practices in an organization may be high, the long-term benefits can be rewarding.
Marketers might express reservations about achieving sales and revenue targets, as well as measuring the return on investment for expenditures on publicity, public relations, advertising, and other marketing communication efforts, alongside implementing sustainability practices within the organization. Nevertheless, incorporating sustainable practices not only reduces operational costs but also brings its own set of rewards.
By Dr. Sean Lochrie, Assistant Professor at the Edinburgh Business School, Heriot-Watt University Dubai
