The Economist noted last year that, “Company after company has been shaken into adopting a CSR policy:  It is almost unthinkable for a big global corporation to be without one.” (Jan 17, 2008) 

Over the past two decades the concept of corporate philanthropy has undergone a significant evolution from cause-specific initiatives into the broader concept of “corporate social responsibility” (CSR).  A CSR approach requires a firm to address various social concerns and objectives as part of its responsibility to a wide range of stakeholders. 

CSR has been given a variety of labels, such as corporate sustainability, corporate citizenship, triple bottom line, and strategic philanthropy.  The concept is broad, but the intent is clear:  companies can no longer be focused simply on the bottom line. 

CSR is an evolving concept and companies are grappling with execution in the marketplace.  Despite the need to become effective at CSR strategy, most firms have not been able to significantly integrate a CSR approach into their organizations.    

Companies often fail because they view CSR as a superficial add-on rather than something emanating from the core values of the firm.  There remains a perception that it is an optional component of strategy and therefore dispensable in more challenging economic times. To succeed, CSR practices must be a reflection and outgrowth of the innovative culture of an organization.   

CSR is more likely to be viewed as dispensable if perceived as a one-way obligation, as a loss of resources.  Thus, there needs to be a clearer understanding of the benefits received by engaging in CSR and how to engage in CSR effectively. 

Of course, the charge against companies is that they are doing positive things only for self-serving reason rather than being entirely altruistic.   They should not be reactive to that claim, since clearly a company has to deploy its CSR focus in an area that fits its skills and resources and where it can have a great impact.   

CSR is important as it is increasingly wrapped up in the value of the brand, and for most companies that is a vital part of their corporate value.  Doing good helps differentiate and sustain brands.  If part of the fabric of the firm, then it is a question of how best to implement in the midst of lesser resources. 

Companies need to integrate CSR fundamentally into their strategic planning so that it is transitioned from a potential add-on and instead is simply one of the basic factors in the planning process.  More fundamentally, CSR can be a vital part of the vision and mission of the company, which then provides the foundation for strategic planning.