In recent years, Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) departments have faced numerous challenges, including a global pandemic, armed conflicts, climate issues, and more. These challenges continue to shape the landscape of CSR and ESG initiatives.
Survey Highlights Concerns A recent survey conducted by the Association of Corporate Citizenship Professionals and YourCause from Blackbaud sheds light on certain issues that require attention in the CSR and ESG realm. The survey included input from CSR and ESG professionals representing 149 companies with a combined community investment exceeding $1 billion. The findings reveal a noticeable gap between C-suite leadership and these departments.
While many C-suite leaders acknowledge the importance of CSR and ESG, only 44% of survey respondents considered their executives highly committed to ESG. Furthermore, just 39% believed that their C-suite executives fully comprehended the strategies of their respective departments, with only 33% believing they understood their company’s CSR strategy. While perceptions of C-suite commitment have improved over time, 46% of respondents expressed a desire for more focus and support from their top executives.
Research suggests that consumers, particularly younger generations, increasingly value CSR efforts from their preferred brands and are willing to avoid companies that do not prioritize such values. Neglecting these internal warning signs could potentially harm a company’s reputation and market position.
Resource Challenges Impacting CSR and ESG As corporations navigate financial challenges, CSR and ESG professionals find themselves facing increased responsibilities with limited resources. According to the survey, 86% of respondents noted an expansion in their team’s responsibilities over the past year, coupled with feelings of inadequate support. Only 42% believed they had sufficient resources to meet their leadership’s expectations, indicating the need for additional capacity and financial support.
This resource divide not only affects employee morale, retention, and burnout but also impacts grantmaking budgets. In 2023, a lower percentage of companies increased their grantmaking budgets compared to previous years.
Diversity, Equity, and Inclusion (DEI) in CSR and ESG While diversity is a cornerstone of stronger and more inclusive organizations, many CSR and ESG departments still struggle with a lack of diverse representation. The survey revealed that 87% of respondents worked on teams where less than half of the members were Black, Indigenous, or People of Color (BIPOC). Hiring more BIPOC individuals in senior leadership positions is one effective approach to address this issue, as teams with BIPOC leadership tend to be more diverse. However, the survey showed a 17% decrease in the number of leaders of color in 2023 within CSR and ESG departments.
To effectively capture and project a company’s values, decision-makers should reflect diverse viewpoints and perspectives. This necessitates recruiting, hiring, retaining, and promoting BIPOC staff at all organizational levels, including within CSR and ESG departments.
Global Health Priorities Amid COVID-19 Despite the ongoing COVID-19 pandemic’s profound impact on global health and economies, the survey found that healthcare was not a top priority for most companies. Only 32% of respondents considered healthcare a priority, with a mere 3% citing international development as a priority. Instead, environmental sustainability, K-12 education, and food insecurity ranked higher on the corporate agenda, with 56%, 53%, and 49% of respondents, respectively, identifying them as top priorities.
This disparity highlights a need for companies to recognize the interconnectedness of global health issues and the potential consequences of neglecting them. Pandemics do not respect borders, and proactive measures are essential to mitigate future global health crises.
Positive Trends in Volunteering In a positive development, more companies are encouraging employee volunteering. While some companies have been hesitant to allow employees to volunteer during work hours, evidence suggests that volunteering is beneficial for both employees and employers. According to a separate Deloitte survey, 77% of respondents believe that volunteering contributes to employee well-being, and it boosts morale more effectively than company gatherings and parties.
The Association of Corporate Citizenship Professionals and YourCause from Blackbaud survey also revealed a growing trend in employee volunteer activities, with 61% of respondents reporting an increase. Platforms like Rayze and VolunteerMatch are further facilitating volunteering opportunities.
While volunteering alone may not address all CSR and ESG challenges, when C-suite leaders encourage employee volunteering, they contribute to building a better world and fostering a positive workplace culture.
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