How can you future proof corporate responsibility in times of uncertainty?
Financial services have always played a vital role in philanthropy and corporate responsibility (CR). Political and economic uncertainty in the UK and key markets, coupled with trust in “crisis” with business “on the brink” [1], have created greater uncertainty for businesses and their approach to CR.
In recent times, our analysis suggests that corporate giving is relatively robust. At the same time long term materiality drivers exist for CR and sustainability in financial services: the UN Sustainable Development Goals (SDGs), inequality, reductions in state expenditure and the need to build productivity to name a few. Some argue that the need to attract and retain talent on the one hand, and calls for a “new social contract” [2] between business and society on the other, have created a more urgent sustainable business agenda. What is needed is a more purpose-led, integrated approach that covers the entire business, not just CR teams. How will financial services respond?
This year’s Edelman Trust Barometer identifies a widening of the gap of trust in business, between those who have thrived in an era of globalisation and those who have not. This is part of a long-term decline in trust in traditional sources of authority and is closely linked to the recent rise in populist and protectionist sentiment. For companies, trust matters: not only are people more likely to buy and recommend products from trusted businesses, trust underpins a company’s licence to operate and innovate.
Nick Barron, MD of Corporate Reputation at Edelman, recommends that businesses build trust through demonstrating how purpose is integral to their business, adding “Increasingly, your audiences trust people like themselves, above all others. To earn trust, therefore, companies must demonstrate that they stand for something and share their key audiences’ values, connect at a local level and lead “human” conversations with all stakeholders”.
We have distilled our insights into “future proofing” CR strategy in financial services, based on our research, our work with clients and also recent discussions with CR professionals in the sector.