New Report Unveils Shifting Dynamics in Corporate Social Responsibility (CSR): Navigating External Pressures and Evolving Priorities

Skillsoft, a prominent platform for learning experiences, has unveiled insights from its latest Corporate Social Responsibility (CSR) at Work Report, revealing a complex landscape where organizations grapple with aligning CSR commitments to core values amid growing external pressures. The study, based on responses from 868 working professionals, highlights significant shifts in the motivations behind CSR initiatives and sheds light on evolving priorities in the corporate landscape.

Changing Motivations for CSR Commitments

The report underscores a noteworthy transformation in the driving forces behind CSR commitments. While last year saw 40% of respondents stating that their organizations' CSR endeavors were motivated by "doing the right thing," this figure has plummeted to a mere 13% in the current findings. Instead, the altruistic inclination appears to be waning, giving way to external influences. Half of the respondents now assert that corporate CSR efforts are primarily propelled by customer feedback, government mandates, and public perception.

Increased Emphasis on CSR

Despite the shifting motivations, the report indicates a heightened priority for CSR initiatives. Two-thirds of respondents express that CSR has become more important compared to the previous year. Notably, the C-Suite has taken the reins, with 55% reporting that CSR efforts are now being led by executive leadership. Under C-Suite guidance, CSR budgets have seen a consecutive increase for the second year, with training and education emerging as the top area of investment (41%).

When respondents were asked about the top three benefits of CSR investment, improved brand recognition, enhanced business reputation, and increased sales and customer loyalty took precedence. This reflects a growing acknowledgment of the tangible advantages that well-executed CSR initiatives can bring to organizations.

For the second consecutive year, the report identifies the top three priorities in CSR programs as diversity, equity, and inclusion (DEI), improvement of labor policies, and participation in fair trade. These areas remain central as global laws increasingly demand elevated business standards, and organizations aim to stay competitive, build trust, and attract and retain talent.

The report sheds light on the evolving role of Generative AI (GenAI) in the CSR and Environmental, Social, and Governance (ESG) landscape. An overwhelming 84% of respondents believe that GenAI will impact ESG reporting and decision-making. Notably, respondents highlight that GenAI supports governance initiatives by aiding in ESG reporting and decision-making processes.

Unified Opinions on CSR Success Metrics

Both employees and leadership share a similar perspective on the success of CSR programs, with respondents rating the overall success of their company's CSR efforts at 65%. This alignment extends to predictions about leadership, with an anticipated similar rating of 66%.

Respondents believe that CSR program issues can be effectively addressed through long-term plans, including training and education programs (35%). Other suggested remedies include a commitment of time and people (32%) and the creation of authentic connections and partnerships (20%).

The report highlights a notable difference in CSR reporting practices between private and public companies. While 70% of survey respondents note that their organization publishes an annual CSR report, private companies are less likely to do so (49%, down from 57% last year). In contrast, a majority of public companies (51%) are likely to publish a CSR report, potentially influenced by government mandates and increasing accountability from investors and stakeholders.

Key Metrics for CSR Success

The health and security of employees and community members retain their position as the top metrics for measuring CSR success for the second consecutive year. Notably, industry and awards recognition emerged as the second-highest metric, followed by greenhouse gas emission levels.

While CSR remains a significant focus for organizations, the report suggests that ESG efforts may eventually overshadow CSR. Although 62% of respondents state that their organization's current focus is on CSR, 50% believe that ESG efforts are gradually replacing CSR initiatives.

The full report provides actionable insights and advice on building robust CSR programs in the evolving corporate landscape. Skillsoft's 2023 Corporate Social Responsibility at Work Report is available for download for those seeking comprehensive perspectives on CSR trends and strategies.

The GRC Report is the first word in governance, risk, and compliance news. As your trusted source for comprehensive coverage, the GRC Report keeps you informed and equipped to navigate the evolving landscape of governance, risk, and compliance. And remember, the GRC Report isn't just a news source; it's a community of professionals who share your passion for GRC excellence. Don't miss out on our insightful articles and breaking news – join the conversation and empower your GRC journey.