In a world increasingly aware of the environmental and social impact of business activities, corporate social responsibility (CSR) has become a major concern.
Taking advantage of legislation in favor of eco-responsibility
Over the past two decades, legislation has become progressively stricter. This trend has accelerated recently with the introduction of even more demanding legislation, such as the CSDD, which will come into force on January 1, 2024 and stipulates that :
- Companies must assess and prevent sustainability and human rights risks across their entire value chain (direct and indirect suppliers)
- The CSDD would introduce the ” duty of vigilance ” into European law, inspired by French law no. 2017-399.
European companies would be obliged to publish identified risksand measures taken to remedy them.
What CSR strategy should be adopted?
In view of these factors, a well-established CSR strategy is now a means of differentiation. More than simply complying with regulations, CSR can give your company a long-term competitive edge. But what strategy should you adopt ?
The strategy to be put in place must be preventive and proactive, enabling the company to simultaneously supervise activities carried out internally as well as interactions with external third parties, the idea being to identify and measure risks in advance so as to implement company-wide preventive measures.
A company that fails to comply with environmental or social standards is liable to prosecution and fines, not to mention irreversible damage to its reputation: on average, a CSR-related violation leads to a 12% fall in share value on the stock market;
Equip yourself with a digital solution to monitor internal measures and control supplier risk
As part of this transition, digital solutions play a decisive role in aggregating data from various sources and establishing relevant indicators.
SAP Ariba Risk Management and EcoVadis, for example, make it possible to monitor policies implemented internally as well as to limit third-party risks. This was highlighted during our latest webinar on supplier risk management, including CSR risks.
Commercial advantage with customers and prospects
Beyond the benefits of compliance, a company committed to CSR can stand out from the crowd, particularly from a commercial point of view. At a time when consumers are placing increasing importance on the impact of their purchasing decisions, this commitment can strengthen the loyalty of existing customers and even open up new business opportunities. Companies that integrate sustainability into their operations can find new markets, develop new products or services, and create new sources of revenue.
Internal benefits: attracting and retaining talent
Internally, CSR is a powerful tool for attracting and retaining talent. Many employees, particularly among the younger generation, aspire to work for companies that share their values. A solid CSR policy is therefore a major asset in attracting and retaining talented, committed employees.
CSR is a strategic tool in tomorrow’s economy
CSR is much more than a question of compliance: it is a strategic tool that enables companies to thrive in the economy of the future. Companies that take a proactive approach to CSR will be better positioned to manage risks, strengthen their reputation, attract and retain talent, discover new opportunities and ensure their long-term resilience.
