The days of companies being evaluated solely on their customer satisfaction and financial performance are long gone. Nowadays, firms are increasingly scrutinized for their impact on society and the environment, with corporate social responsibility (CSR) becoming an essential component of brand identity.
As a result, socially responsible companies must navigate a delicate balance. Overemphasizing their CSR efforts to improve their public image risks accusations of “greenwashing,” which can lead to reputational damage and even legal troubles.
On the other hand, downplaying CSR initiatives, a phenomenon known as “greenhushing,” can create the false impression that a company is indifferent to its impact on society and the environment, ultimately harming its brand. Walking this tightrope between brand management and genuine social and environmental responsibility is a critical challenge for companies in today’s world.
Building a conscientious brand
In a recent paper, researchers from George Mason University propose a framework to help managers deal with these complexities and become what they call a “conscientious corporate brand” or CCB. This is a company that is perceived by stakeholders as actively promoting environmental and social sustainability via co-creation and ethical leadership.
The path to becoming a conscientious company is not an easy one. It requires a genuine commitment to doing the right thing, from the top down. That’s according to the framework developed by the researchers, which lays out a three-part transformation that companies must undertake in order to become what he calls a “Conscience-Centered Business” (CCB).
The first step is to appoint ethical leaders who are truly committed to doing what’s right for people and the planet. These leaders must then issue a statement of organizational purpose that clarifies the company’s conscience and rallies the troops. From there, the organization should pursue ethicalization, which involves making concrete changes to corporate culture, such as introducing a code of conduct that meets stakeholder expectations for conscientious companies.
Working with stakeholders
Once this internal transformation is underway, companies should work closely with stakeholders to assess their current social and environmental impact and draw up a plan for improvement that covers the entire value chain. The researchers emphasize the importance of engaging with suppliers to ensure that they, too, are socially responsible and ethical.
It’s also crucial for companies to engage in two-way communication with their stakeholders, including employees, suppliers, and communities. This process of co-creation involves communication, internalization, contestation, and elucidation.
After implementing their CSR and sustainability plan, companies should communicate the results, not just to the public, but to their own employees as well. Well-executed internal communications campaigns can enhance cultural cohesion, loyalty, and engagement among employees, giving companies an edge in the competition for top talent. By following this framework, companies can become true Conscience-Centered Businesses, with a commitment to doing good that runs deep.
