Byline: David Darlaston
Why we need responsible business now more than ever.
Business in the Community welcomes the Thrive survey of corporate responsibility.
As we have found over 25 years of working with our members the imperatives now are as relevant as ever to mobilise business for good.
As the credit crunch bites and businesses look carefully at all their activities, employees, consumers and investors will all think carefully about the choices they must make.
The good news is the case for responsible business is stronger than ever. New research released by Business in the Community reveals a statistically significant link between effective management and governance of environmental and social issues and financial performance.
Sponsored by Legal & General and undertaken by Ipsos MORI, the research examines the financial performance of FTSE companies which have measured and managed their corporate responsibility through Business in the Community's Corporate Responsibility Index over six years. Those companies that actively managed and measured corporate responsibility issues outperformed other FTSE companies by between 3.3 per cent and 7.7 per cent.
Stephen Howard, Chief Executive of Business in the Community commenting on the research said, "Now more than ever, businesses need to demonstrate that corporate responsibility isn't an overhead but a value creator. This research clearly shows that sustained environmental and social performance does pay dividends - literally".
The Thrive Survey also demonstrates the moral case for continued or renewed CSR activity. It is clear to Business in the Community that those companies who are seen to be active in engaging and demonstrating responsible business practice will bemost likely to build reputation, retain employees, attract the best talent and innovate and react faster to change in society. …