Recession, depression… let’s call the whole thing off

“Let’s call the whole thing off” was a Gershwin number from the Fred Astaire and Ginger Rogers film of the 1930s, Shall we dance, aired as the world was still suffering the effects of the last great crash. Then they were arguing about pronunciation, while today economists and politicians squabble about what to call the economic melt-down. Whatever the linguistics, plenty of people are now positing a profound shift in attitudes to CSR within and without companies, some calling the end of what they see as a damaging diversion.

Yet the picture we report in this edition is more mixed, perhaps even hopeful. AT Kearney finds that companies with the strongest commitment to sustainability have outperformed the norm on stock markets by 15% during recent months. Other stories cover the role of social enterprise as a generator of value, both social and economic, in tough times and the increased opportunities for volunteering and even the clarity brought to investment strategies that seek long run returns, whether called ‘ethical’ or mainstream.

In commenting on the stories here, our own analysts find both risks and opportunities for companies serious about responsible and sustainable business, including ethics in the supply chain and authentic green claims. Meanwhile some companies are finding new ways to underpin the credibility of their commitments like Dole using tracking codes and Google Earth so consumers can literally see the origin of the fruit they buy.

On the other hand, the sceptics are not confined to Friedmanites or disciples of the Chicago school of economics. Edelman’s annual Trust Barometer finds confidence in business to do the right thing at an all time low among the American general public, and trust in CEOs at rock bottom.

The challenges for CSR professionals at this time are indeed great but the need is greater still.