University of Vaasa - Vaasan yliopisto

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value and advantage has become increasingly important. The emphasis on the need
for such a business case has been evident in all data sources reviewed in this research.
“All areas, including CSR need to be justifiable in business-terms; focus is on core,
profit-making activities is viewed as essential.”
(Financial Services Company)
“more talk about business case rather than ethics; using language of business to
develop business case and in articulating need for CSR”
(Financial Services Company)
“There will be more discussion around materiality and relevance of CSR in terms of
investors needing to be clear of the relevance of CSR, what it is and why it happens”
(Investment Company)
The emphasis on a robust business case which shows real business value was also
evident in an Accountancy Age webcast (Accountancy Age 2009), showing an
interview with representatives of the business research and accountancy sectors. The
interviewees highlighted that although there are still a number of diverse CSR
constructs, within all of them, it is value which is key; with particular emphasis
placed again on efficiency.
Efficiency
“……. we're not suggesting that companies abandon philanthropy and
other charitable initiatives until the sky is blue again. We're only
saying that corporate social responsibility—or CSR, as it has come to
be known—needs to adapt to the circumstances. It hasn't become a
"luxury," to use your word, but leaders today do need to pin down, for
themselves and their employees, CSR's place among the company's
priorities.”
(Welch and Welch 2009: p 1)
Again, this supports the view that ‘value is the key’, that businesses can, in times of
recession legitimately discuss cost cutting activities in a way which had perhaps
become unfashionable in policy making environments. Respondents referred to the
need to demonstrate that CSR activities must also demonstrate efficiency gains.
‘Areas to be focused on will be those which will lead to cost savings, for example
energy use, waste management and business travel.’
(Financial Services Company)
Another theme which arose around efficiency and savings, is that some CSR
activities will not be effected by this for a number of key reasons. Firstly, where
CSR is focussed on compliance, costs cannot be cut. Secondly, where CSR is not an
integral part of the firm, CSR costs will be small and so not a major area for
efficiency gains. And thirdly, where CSR is already integrated into a firms activities,
it is not likely to be in the interests of the firm to disentangle these activities during
the recession, partly because this might be costly in itself and partly because it would
send inappropriate messages to stakeholders.