1. Social Responsibility Now Becoming Table Stakes -- Clients and Employees Expect More From Their Service Providers
Operational Risk
Lost business from clients requiring greater commitment, compliance, and transparency. Difficulty in recruiting and retaining employees.
CSR mitigates risk by identifying the hidden operational risk, which has become increasingly important with clients and employees. It also makes CSR integral to the company’s value proposition.
2. Stakeholders Want Greater Transparency
Operational Risk
Loss of brand trust, boycotts, divestment
CSR mitigates risk because it knows what and how to communicate to internal and external stakeholders to maintain engagement and brand trust amidst complex and evolving social issues
3. Formerly Voluntary, Social Responsibility Is Now Becoming More Regulated.
Litigation Risks
Because efforts are siloed, transactional, and not part of enterprise risk management; standards are not consistently met or measured effectively.
CSR Mitigates the risk through faster development and deployment of compliance programs and by getting ahead of the curve to ensure consistent compliance on emerging regulations.