The economy or the environment? New poll shows challenges for CSR

Since the earliest days of writing this blog and reading reports/analyzing data I’ve become increasingly aware that the biggest obstacle against  the growth and commitment to Corporate Social Responsibility (CSR) has been the overriding economic conditions of the last few years. The global economy went into decline in 2007 with most nations plunged into recession the following two plus years. While the last 12 to 18 months have shown differing degrees of recovery dependent upon the country in question, concerns about employment and economic growth continue to act as an anchor when it comes to environmental issues as they relate to being implemented within a CSR plan. This impacts key decision-makers at large corporations and also those with just a handful of employees, it also impacts the spending habits of consumers and indeed their priorities.

Nothing illustrates the changing status of concerns about the environment versus the economy more poignantly than a new survey released by Gallup which asks the very matter-of-fact question:

With which one of these statements about the environment and the economy do you most agree? “Protection of the environment should be given priority, even at the risk of curbing economic growth (or) economic growth should be given priority, even if the environment suffers to some extent”

Why the poll is so valuable is that Gallup have asked the exact same question on regular basis since 1984. What concerns me most is that those who would answer that the environment was the priority were in the majority every time from 1984 to 2007, but now the economy is the number one priority for most with the most recent survey showing that gap at its largest point ever. Based on those polled (1,021 American adults) this year 54% would prioritize economic growth over the 36% in favor of environmental protection. Analysts feel that the trend would return to where it was pre-recession once economic stability is more trusted and/or demonstrated but these numbers do demonstrate the difficulty that companies have had and will continue to have when making extended commitments to CSR especially when they are falling within the environmental sector. I find the research especially interesting as many articles I write seem to have this ‘current’ interpretation of the importance of environmental issues inferred but not necessarily quantifiable. In real terms a very strong case can be made for environmental protection going hand-in-hand with economic growth (or corporate growth) and that the most progressive business approach today and for the years ahead would ensure that both are considered in tandem with one another. Both do matter in a free-market system and they don’t have to be mutually exclusive, when it comes to product manufacturing, sourcing of raw goods and supply chains approval plus energy use, packaging and distribution each step of the production and marketing process does have a direct impact on our environment.

I feel that the missing step at the moment is the transfer of knowledge to consumers or recipients of service supplies when it comes to evaluating the overall CSR credentials of one company versus another. There is no independent body at present that allows us to fully evaluate the true environmental program of every company but I do think that day is coming, hopefully sooner rather than later. When we fill up our car with gas, decide which airline to fly on or purchase a new refrigerator there is no easy method to accurately measure and compare the environmental performance of company ‘A’ versus company ‘B’ & ‘C’. Reaching that point will certainly help to redress consumer behavior and better align purchasing practices with environmental concerns. We’re beginning to get there, but it’s still some way off in the future.

The Gallup poll is significant of course and it does go on to break down the results by political persuasion, age, education and location. Many of which provide the results that you might anticipate but more importantly the overall swing toward the economy being the priority has happened with each and every demographic. In the year 2000 when environmental awareness was probably no higher than it is today the support for environmental protection being a priority was huge with 67% choosing the environment as the priority over the economy (28%) based on the same Gallup question. Here we stand 11 years later with companies large and small accomplishing more than ever in terms of environmental/CSR progress with the end consumers now saying it’s the economy that really matters. While I can understand how the numbers have shifted I think there is a substantial misunderstanding taking place; that being the economy is an immediate concern but the environment much less so when in fact the importance of environmental protection doesn’t ebb and flow. It’s a constant. Yet until corporations across the globe and consumers too are dedicated to changing their habits the need for environmental action will only continue to gradually accelerate. It’s interesting that the poll was taken just before the recent catastrophic events with the tsunami in Japan, I’m sure if the same poll were taken today the numbers would again change in the other direction.

In summary it really helps to illustrate the fact that the integration of a expansive CSR program by a company is evidence of a deep commitment and long-term planning being considered a higher priority than short-term gains and profit. Let’s not forget that the foundation of CSR is the cohesive partnership between people, planet and profit.

You can read the full results of the Gallup study by visiting this site.

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