February 6th, 2009

Sustainability / CSR Reporting to spread or shrink?

Continuing with answers from my earlier LinkedIn question…

(In 2009-2010,) Do you see value in small and mid-size businesses following their Fortune 1000 counterparts into the world of sustainability/social responsibility reporting? Or will some of the larger companies pause their efforts in this regard?

Ted Ning, LOHAS: Reporting demonstrates there is some oversight on operations but my question is who reads them? And if they do read them why? From a compliance perspective, it makes sense to have reporting parameters in place. From a marketing perspective, many companies use it as a safety net. Once again I see that if this is something that is not of a core value for the company it will be slashed. However, larger companies such as IBM have been successful in blending the message of efficiency with sustainability with their TV ad campaigns. I believe that reporting is needed and is a great opportunity to present data in a unique way that resonates with the reader. Sometimes they get too analytical. I think there is tremendous opportunity for revision on the presentation of sustainability that needs to be up with the current times of information delivery.

Randy Paynter, CEO – Care2: Transparency is very important. No doubt, some big companies that are cutting back will reduce efforts in this area, but those that are committed to being responsible will find ways to continue their reporting. All that said, I think the issue of transparency is often more important for the company than it is for the consumers in that doing an audit and knowing others are going to see it forces the company to be true… even if few ever look at the report.

Just a note that with web 2.0/3.0 and social media growing the way they are, Ted Ning’s comments about better presentation and being “up with the current times of information delivery” seem right on target to me. Companies can do more than report on their efforts — they can engage and inspire if this is done right in the near future.