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IR & CSR - worlds colliding or nature taking its course?

February 08, 2010 by Rob

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Given 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 Conversation

Stefan Pettersson on February 09, 2010

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)

Rob Berick on February 09, 2010

Stefan - many thanks for the additional insight… very helpful, indeed. The McKinsey findings do not surprise me at all as they mirror the informal input I’ve received from investors over the past year or so. I shudder when IROs tell me that they’re leaving CSR disclosures and discussions up to their Community Affairs department - talk about a missed opportunity!

Brenda Ropoulos on February 23, 2010

Hi, Rob - thanks for asking this question in an intelligent way. I think every opportunity you have to communicate your company’s core values to an investor is an invaluable one. Your values and concerns convey something about what you are/offer as a company. It also further helps an prospective investor to understand how you “fit” their interests.

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About rob

Position:Senior Managing Director

Rob Berick

Rob oversees Dix & Eaton’s investor relations practice and is a member of the firm’s Leadership Committee. Over his nearly 20-year career, he has developed and executed investor relations programs for companies in a wide range of industries and market cap sizes.

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