Solutions to Investor Relations Challenges
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The best way to tackle Corporate Social Responsibility
21 June 2009
Q: My company has never had much to say about corporate social responsibility, and quite frankly neither have our traditional investors. Now I understand that the trend is to devote an entire section of the annual report to CSR. But would it ring hollow without real commitment behind it? Or is that just me being shortsighted?
A: The reason your long-term investors haven't expressed any concerns about your CSR policy is because for the most part they couldn’t care less. This is not because they’re morally repugnant, unpleasant individuals, but because to this day there is no conclusive evidence that big efforts in CSR produce an improved return on capital, which is what they’re ultimately interested in. Remember, your investors’ concerns should be your concerns, so I’m inclined to say that if it's not their concern then don't make it yours. Having said that, more and more investors are become interested in these issues. Why not address the matter somewhere else, like your website?
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