IR & CSR - worlds colliding or nature taking its course?
February 08, 2010 by Rob
3Given all the chatter on Twitter about the SEC requiring every company “to disclose the impact that business or legal developments related to climate change…”, I thought I’d ask you what you thought about all this.
I have long thought IROs that avoid influencing their company’s disclosures on corporate social responsibilities (or CSR for those Alphabet Soup fans) are missing an opportunity to shed light on an important intangible asset at the very least and shirking a fiduciary duty at worse.
So - tell me - is the intertwining of CSR and investor relations an example of worlds colliding or simply nature taking its course?
The fact is that investors are becoming more and more interested in corporate responsibility and sustainability as a driver of long-term value and corporate health. I therefore believe that IROs need to become more proactive in the communication of CR/sustainability. Respondents to a recent McKinsey survey identified enhanced reputation as the most important way that corporate responsibility programs add value. But they go on to say that “environmental, social, and governance programs can create value in many other ways that support growth, improve returns on capital, reduce risk, or improve management quality.” (http://bit.ly/atKpsY)