Corporate Social Responsibility Communications Strategies Are Not Working

New study indicates lost, unrealized brand value from CSR activities

April 13, 2022. A new study from Diamond Head Research, a leading research and advisory firm on corporate social responsibility (CSR) strategy, examined employee sentiment about the CSR activities of their employer. The study was based on interviews with 225 employees of medium and large sized US companies across all job functions and levels of seniority.

One important finding from the study highlighted the importance of having an effective CSR communication plan for all stakeholders. According to the firm, effective communication of CSR activity and its impact is a critical element in realizing the full value from a company’s CSR investments – a step that is often an afterthought or completely missing for many organizations.

Further, the study uncovered that many employees do not see their company’s CSR activity mentioned in the press, social media, or other forms of advertising. In fact, 45% of respondents said they either never or rarely see their company’s CSR activities mentioned in these types of external communication channels. “This indicates that companies are not getting full value from their CSR initiatives”, said Cort Isernhagen, a partner at Diamond Head Research. “In addition to the obvious societal and environmental benefits, investments in CSR can also have tremendous positive impact on brand recognition and brand value for a company. Companies that do not appropriately communicate their activities externally to their stakeholders will struggle to see the full value from their CSR investments.”

One reason for this misalignment is likely a result of how CSR activities are managed, according to the firm. Most survey respondents (about 40%) indicated that Human Resources departments are responsible for managing communications about corporate social responsibility. “HR teams are not designed to think about external communication strategies, as it is typically a function of Marketing, Communications, or PR departments. For companies that do not have dedicated CSR departments, HR teams must work together with Marketing and PR teams to design CSR strategy, and then incorporate these activities into brand marketing campaigns,” said Isernhagen.

The study also examined employee perception of the effectiveness of their employers CSR activities, the level of engagement from employees into the strategies, and other aspects of CSR management in medium and large sized firms. For more information, or questions about the study, email contact@diamondheadresearch.com.

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