Christian Scharff, president of conference organisers IMS Luxembourg (Institut pour la Mouvement Sociétal) admits that his organisation is still in its “apprenticeship phase”. His introductory remarks were a frank reaction to a CEPS study that shows there are still too few enterprises actively engaged in corporate social responsibility in Luxembourg. But Scharff is optimistic, and the enthusiastic turnout for IMS’s CSR Luxembourg 2009 conference, which featured a series of well-attended lectures and workshops, was encouraging. “The objective was to provide examples of good CSR practice and to communicate ideas and provide some impulse,” says Scharff. Attracting a reputable line-up of local and international guest speakers, including renowned glaciologist Claude Lorius and French explorer Nicolas Vanier, there was certainly enough inspiration at the conference. In addition a number of organizations involved in different aspects of CSR were also invited to host information stands during the day-long meeting.

Corporate social responsibility is a topic that is attracting great interest from the media, the business world and academia, even more so since the economic crisis broke. German marketing consultants Steffen Hermann and Manfred Kirchgeorg have even labelled this new trend “CSR euphoria”. But, as with all new trends, scepticism is never far away – some companies have been found out for what has since been labelled “Greenwashing”, in other words their CSR programmes have been purely for public show and have failed to stand up to more intense scrutiny.

Virtuous circle

Sam Rowe, Director Corporate Communications of Weber Shandwick in Brussels, emphasises the need for those companies engaging in CSR to “consult in the right social areas...speak to NGOs in the field...to obtain an independent stamp of authority.” Together with Daniel Atlan, of Talent Management, Rowe engaged in an enlightening discussion about CSR and corporate reputation. She warns that just as politics and media are local, so CSR is local - what is valued in one market will not necessarily be valued elsewhere. Rowe says that in Europe, for example, there is no need for companies to deliver a “golden bullet” so long as they are seen to be part of the CSR debate. However, she recognises that CSR can be a real business differentiator. “There is an expectation, and not just from perhaps naive consumers but also from the City, that companies that recognise these areas and invest in CSR will perform well.”

And for those who claim CSR is not part of the remit of a profit-making enterprise Rowe cites Michael Porter’s theory, mooted in an award-winning paper in the Harvard Business Review, that there can be what he called a “virtuous circle” of CSR. “A company can produce good products, be mindful of its employees and customers and partners and the environment in which it operates, and can still make good money. And this is because consumers today want to buy from organisations that have a social conscience.” She also espouses Porter’s argument that CSR should have some relevance to what a company does – a mining company, for example might benefit best by undertaking positive action for the environment. “There has to be some sort of link so that consumers can touch it and feel it.”

But how do companies ensure that consumers and other stakeholders are fully aware that they do, indeed, have that social conscience? “Direct stakeholder feedback is the best source of information about a company’s external reputation and CSR profile,” says Luc Biever of TNS-ILReS. TNS has developed a TRI*M system for measuring, managing and monitoring CSR as a driver for corporate reputation. The system incorporates various tools, such as the Corporate Reputation Index and the TRI*M system grid. As Biever explains, the index determines in which stakeholder groups, if at all, the subject company’s reputation is endangered whereas the three-dimensional grid enables the company to identify the driving forces behind its reputation and to therefore derive appropriate communication and action strategies to redress any imbalance. TNS claims the TRI*M system can therefore enhance a company’s relationship with its stakeholders and distance its CRS credentials from any accusations of “Greenwashing”.