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What do CSER and SRM have in common?
Likewise, being perceived as an organisation with strong CSER credentials can greatly enhance reputa- tion and have a positive impact on business performance. Effective management of CSER helps companies manage and shape public, consumer, investor and employee perceptions. Good CSER can help with access to new capital and improve relation- ships with the investment community, giving companies a competitive market advantage. The importance of reputation also applies to a company’s attractiveness as an employer. A well developed CSER strategy strengthens internal company culture - organisations with strong CSER programmes note that employees have higher levels of satisfaction and productivity, and this leads to better retention. With 65% of 2012 MBAs stating they want to make a social or environmental difference through their jobs , it is clear that CSER is valued by a broad range of stakeholders. In addition to brand and profit protection, CSER can support companies to unlock new value through product differentiation, by stimulating greater brand loyalty and offering new market opportunities. A leader in this area is Unilever, whose sustainability living plan – which built new business models while improving social and environmental impacts - enabled the company to reduce costs by €300m and grow sales by 26%.
Both CSER and SRM must be acutely aware of risk and opportunity in the supply chain. Why to invest in activities to promote CSER is a subject that has been covered at length elsewhere, but is worth revisiting here as we explore how SRM can positively impact CSER risk and opportunity. The risk of being perceived as an organisation not concerned about CSER can have a profound impact on business performance. For evidence of the risk, one need look no further than the example of Nike – their supplier’s use of child labour in the 90’s resulted in a 69 percent drop in fiscal earnings and boycotts of the brand. Such failings to manage the supply chain effectively can have long lasting effects and not only a short-term dip in sales. Companies that fail to under- stand risk by association through their supply chain, put their brand reputation and profit margins in jeopardy.
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