According to the integrity interactive web site, “CSR [Corporate Social Responsibility] is the contribution that a company makes to society through its management of its economic, social, and environmental impacts and its management of relationships with stakeholders.” That translates into companies giving back: to communities, its employees, customers, and to society in general. Strange that the practice, old and sacred to so many, now has an official name and is considered an actual concept. In fact, thanks to a year of cover stories from Fortune to Business Week and highly publicized billion-dollar gifts from Warren Buffett to Richard Branson, CSR is becoming the business mega-trend of 2007.
Corporate leaders are realizing there is a business case for getting involved and giving back to their communities. And those who have been doing it for years are recognizing it makes good sense to tell their stories in a tasteful way—because consumers and employees, especially the maturing Generation Y, expect the places they work at and do business with to be good stewards of the “neighborhood.”
Late last year, PR Week released its “Cause Survey.” When asked if they felt it was “important for companies to support causes/charities,” nearly 90 percent of those interviewed said “yes.” Similarly, 64 percent said they had “purchased a particular brand because it supports a cause [they] believe in.”
The Container Store is a prime, local example of a company with good will from consumers stored up in the bank. The company’s co-chairman, Garrett Boone, is a shining practitioner walking the talk on CSR, proving it can lead to some serious traction.
“I don’t see [CSR] as a separate act,” Boone says. “It’s woven into everything we’ve been doing since we’ve been in business.” Boone—who also helped found The Container Store nearly 30 years ago, has two degrees in history, got his start with Montgomery Ward, and is an avid woodworker—has become better known of late for his work on clean-air issues (he drives a Prius) and is famous—or infamous—among his colleagues on the local YMCA board of directors for insisting on taking the stairs in buildings short and tall.
“I’m all for the concept of CSR, but we don’t talk about it that way. We think about it as a natural part of our business,” he says. One can’t think of The Container Store without recognizing its status as one of the nation’s best companies to work for, having been named to Fortune’s list for eight years in a row. “The way we conduct ourselves as a business is a huge way we give back to the community.”
The storage-product retailer makes donations on an individualized and personal basis, focusing on the philanthropic organizations the company feels are making the greatest impact for its customers in the communities it has stores. The company donates 10 percent of its total proceeds from grand-opening weekends to local charities—not to mention product donations and employee volunteer time. “We’re proud of what we’ve done,” Boone says, “but there is so much more to do.”
His philosophy is simple and gives permission for corporate leaders to leverage the good works a company is doing and expected to do. “First, it’s the right thing to do,” he says. “We should do everything we can to leave the Earth in better shape than we found it.
“Second, it’s really good for business,” he adds. “And third, increasingly customers require the very best businesses to show they are environmentally and socially responsible. It doesn’t mean you’re being insincere. It’s the right thing to do.” Profitable, too: Boone’s brainchild has more than 39 stores across the country, with more to come, and 2007 sales are projected at above $575 million.
As for those jumping on the CSR bandwagon to take advantage of the business trend and make a quick buck, like those who would make a $25,000 donation only to spend $250,000 bragging about it, Boone doesn’t waste much time worrying. “The danger is, the more popular CSR becomes, there will be those not really walking the talk, just talking it for PR sake. But eventually, I think consumers realize what they’re doing,” he says.
And if recent success is an example of what’s to come, expect a lot more companies starting down the CSR trail and getting mileage from consumers for doing it.
Crayton Webb is manager of government relations for Mary Kay Inc. Webb serves on the board of directors for the Dallas Convention & Visitors Bureau, Dallas Area Habitat for Humanity, the Greater Dallas Planning Council and the citywide fitness initiative, “Get A Move On.” Previously, he was chief of staff for Dallas Mayor Laura Miller and an investigative television news reporter for CBS 11.
