Have Ethical Trading and CSR made any difference?
CSR, Ethical Business Practices, Philanthropy No Comments »
Of course it has, but it is an evolution that involves the way that consumers think about the world, products and services as well as the way that companies do business globally.
For the recipients of funds all over the world, it certainly makes a difference. Fair Factories.org published an article that says:
“Starbucks contributes 5 cents from the sale of each bottle of Ethos water to help children around the world get clean drinking water. IKEA donates $2 from the sale of specific stuffed animals to help children recovering from armed conflicts in Angola and Uganda. Target offers a First Aid and Emergency Preparedness Kit and gives $10 from each $30 kit to the Red Cross.”
For children drinking clean water, being comforted through the trauma of armed conflict and being rescued from emergency situations around the world, ethical trading and CSR has made a huge difference.
Customers feel better and their feelings are reflected in product sales. The same Fair Factories’ article also mentions Dove’s campaign for real Beauty (shown in the video above.)
“After launching its Self Esteem Fund this year with a $50,000 donation and campaign about real beauty, Dove saw sales of products in its ads skyrocket 600 percent.”
And this new way of doing business is creating opportunities for start up companies consultants and specialist organizations. The Fair Labor Association in the U.S. tells us:
“Since 1999, the Fair Labor Association (FLA) has helped improve the lives of hundreds of thousands of workers by holding companies accountable to the FLA Workplace Code of Conduct, inspecting and monitoring factories around the world, and developing innovative, sustainable solutions to labor abuses. Fair Labor Association (FLA) affiliates are dedicated to protecting the rights of workers around the world. They include colleges and universities, socially conscious companies, and human rights, civil society, and other non-governmental organizations (NGO's).”
In the UK, according to an article in New Consumer.com:
“SEE Potential, a pioneering organisation set up to track ethical business practice, has revealed that over half of UK managers say CSR has a valuable role to play in business. Forty-nine per cent of managers also said their company could generate new business by having genuine social, environmental and ethical policies (SEE) in place. An impressive 62% said that SEE policies enabled them to retain staff more easily, and just over a third said that having SEE policies even helped them cut costs.”
Organizations and companies are even banding together, as in the case of the Fair Factories Clearinghouse (FFC), a non-profit, collaborative industry initiative to manage and share audit information between companies.
So the trend toward ethical and socially responsible business practices is making a big difference, and promises to continue to do so.
If you don’t feel a difference, what changes could you make to reap the benefits?
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