blog

Corporate Social Responsibility

By Steven Miyao

More and more shareholders are starting to look at Corporate Social Responsibility (CSR). PR firm Fleishman-Hillard and the National Consumers League recently conducted a survey to identify what the underlying thoughts are from consumers concerning the importance of CSR. They found that:

- Almost half of Americans say that treating and paying employees well is the most important proof of good CSR, more so than environmental stewardship and philanthropy
- 76% agree that to be socially responsible, companies should place employee salary and wage increases above making charitable contributions and that a company's treatment of its employees plays a big role in individual purchasing decisions.
- The average American portrayed by this survey is very values driven. Those responding said that it is extremely or very important to 79% to work for those who have similar values and principles.
- Buy products and services from those who have similar values and principles. (65%)-
- Socialize with those who have similar values and principles. (72%)

These stats show that consumers believe that CSR is important. The study also looked at how Americans think the corporate world is fairing in terms of corporate responsibility:

- Only 21% give U.S. corporations top marks for being socially responsible.
- Only 30% believe that companies are doing a somewhat better or a lot better job of being socially responsible over two or three years ago.

The Internet is the primary place where Americans get information about CSR.

- 47% say they use the Internet to learn about the extent to which a company is or is not being socially responsible.
- 53% believe their online research is one of the most credible means by which to shape their opinions on deciding whether U.S. companies are being socially responsible.

It is surprising to me that most Asset Management companies do not have any information about their CSR activities on their Web sites. Calvert is one of few firms that has information about its foundation as well as their community involvement on their site.

More asset management companies should be proactive about sharing their social responsibility with their shareholders.