CSR- Enlightened Self Interest

"In terms of power and influence you can forget about the church, forget politics. There is no more powerful institution in society than business... The business of business should not be about money, it should be about responsibility. It should be about public good, not private greed." - Anita Roddick, Business as Usual

Roddick’s view couldn’t be more true, especially considering that there is a general perception that self interest has been too much at the front of executive thinking and action, and that even during a period of strong economic growth the benefits have fallen to only a few. This unfortunate situation has led to experts predicting that this era of “self interest” is changing and has the potential to give way to a new era of “Responsibility”.

I am sure we all wish this could be now so that we clearly see how responsible more companies are.

CSR- Enlightened Self Interest

It is a known fact that those companies that have learnt how to integrate responsible business practices into their core business are all these companies that are integrating CR because of its positive impact on the long term sustainability of the business, not as an afterthought.  They understand responsible business is both financially necessary and socially beneficial.

With this view in mind, today individual members and groups in the community in which an organisation operates are increasingly being recognised as important stakeholders in the long term security and success of large and small enterprises. Building relationships with these community groups is, therefore, an important issue in corporate and communications strategy. This is where Corporate Social Responsibility (CSR) comes in as it is an organisation’s defined responsibility to its societies and stakeholders.  

But companies and organisations need to take a step further. They need to demonstrate leadership, live and communicate their values and vision and this can’t be done by publishing statements or group rehearsal of values – this requires action and engagement. They should walk the talk.

In view of the above, evidence shows that good governance of corporate responsibility builds companies’ financial viability and stability.

The case of London City Airport

London City Airport plays a key role in supporting the activity and growth of London’s economy. Located in East London, it is the UK’s leading business airport and it makes a significant contribution to the economy of the local area, providing more than 2,000 jobs through its own operations and the 55 employers based onsite.

In 2009, London City Airport launched the “Take Off into Work” scheme for long-term unemployed Newham residents as part of the Airport’s wider community engagement strategy. Among others, the programme helps the company to reach its aspiration of employing 70% of its staff from within 5 miles of the site, with 35% of these from the Borough of Newham.

In 2009, 62 Newham residents from the programme gained employment (some at the airport and some in other local businesses). 45% of these candidates had been unemployed for a year or longer and 4% had never worked. Through the programme, more than 130 previously unemployed Newham residents have now gained employment and recruitment costs (estimated to be in excess of £1,000 per position) have been significantly reduced. Ultimately, the company has received a number of awards for its work, including the Lord Mayors Dragon Award, and a Business Alliance Annual Volunteers Employment Champion Award. This recognition enhances both community relations and support, and more broadly the reputation of the company.

Thus, the “Take Off into Work” programme works to help local people into employment both within and outside of the company by developing their job skills and confidence, and raising their aspirations. The programme is run five times a year.

Why is this a good example of CSR?

The reason is obvious. The “Take Off into Work” programme provides both business and social benefits – namely it provides the airport and its onsite businesses local and flexible staff, adds to the wellbeing of the local area and provides employment for local people. In doing so, it contributes to the wider sustainability of London City Airport’s operations within East London.

Besides, the company eventually gains the trust and support of the communities and this is in line with the 2010 Edelman Trust Barometer which found that business must align profit and purpose for social benefit. Trust is a protective agent and leads to tangible benefits; lack of trust is barrier to change.