Business: CSR Report
Credibility of CSR
I f CSR is business driving economic growth, while behaving
ethically and improving the quality of life of its workforce and
society as a whole, then many opinion leading media have re-ported
on CSR cynically indeed.
It is startling to look at how much more nega-tively companies,
for example in the U.S. (Figure 1), are perceived on issues around
credibility and accountability versus business results. Although
business results were reported on in a generally positive fashion,
especially towards the end of 2003, there was still a very negative
undertone in the media, driven by accounting and securities
scandals.
Regaining credibility is not a process that can be completed
through a quick advertisingAs major corporate scandals have
continued to surface, much of the media cynicism may be well
placed, clearly indicating the urgent need for busi-ness to focus
on rebuilding its image and regain-ing credibility. Unfortunately,
this is not a process that can be completed through a quick
advertising or public relations campaign. It is an ongoing pro-cess
that needs to be integrated into the founda-tion of how business
operates.
South African modelAn interesting model to look at, in terms of
inte-grating social responsibility into business, is that of South
Africa. While business turmoil leads cor-porate media reporting in
the U.S., U.K., and Ger-many, South African media presents a much
more positive picture (Figure 2). The image of CSR there is focused
on the empowerment of previ-
ously disadvantaged groups and has a much more positive rating
associated with it (Figure 3). The reason that this situation
exists is because these types of issues are so engrained in South
African business culture, that they simply cannot be ig-nored.
It is not possible to create and maintain a posi-tive CSR image
if CSR is not integrated into the core culture of a business –
always keeping in mind that the essence of business is economic
growth, so CSR cannot be integrated at a net loss.
Real impactAt fi rst glance, the 100 million dollars that Intel
internationally invests into education could be seen as simply
philanthropy. Although part of the legacy that Intel’s CEO, Craig
Barrett, wants to leave behind is focused on education, that alone
should not be enough to justify that much money being spent. When
Intel expands into new mar-kets, such as Poland and Brazil, it
builds state of the art public computer centres to, on one hand,
invest in the community, but on the other hand
38 Media Tenor Quarterly Journal 1/2005
International comparison of reporting on Corporate Social
Responsibility
While business turmoil leads corporate
media reporting in the U.S., U.K., and
Germany, South African
media presents a much more positive
picture.
-75%
-50%
-25%
0
25%
50%
75%
1 2 3 4 5 6 7 8 9 10
CSRBusiness ResultsOther
Source: Media Tenor01/01/2003 – 10/01/2003
Basis: 83,206 Passages in US Media ( 1,909 on CSR)
Passage: Minimum five lines (or 5 seconds) of coverage about a
company or industry
U.S. CSR coverage – timeline comparison 01–10/20031
The South African
model is an interesting one to keep in mind because it very
clearly identifies the disconnection
between much of
what is considered CSR work and
the core functional areas of business in
the first world.
14%
51%
35%
14%
51%
35%
18%38%
44%NegativeNo clear ratingPositive
13%
25%62%
CSR rating comparison - TV2
Source: Media Tenor01/01/2003 – 10/01/2003
Basis: 22,492 passages (1,008 on CSR) in 20 news programs
Passage: Minimum 5 seconds coverage about a company or
industry
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12:57:2118.05.2005 12:57:21
Business: CSR Report
also time drive Intel product usage and content development in
emerging markets.Similarly, IBM, HP, and Intel working together on
developing supply chain transparency in Asia,
may seem to only be a PR response to pressure surrounding
employment practices in that area of the world. No doubt, this does
play some role, but also there is a business case for better
sup-ply chain accountability. This can be seen in com-
panies such as Gap or Nike, which at one point were prodded into
examining their supply chains. Now they are able to actually show
cost savings through the signifi cant improvements in reliabil-ity
and overall quality, which have been provided through more
transparent supply chains.
Credibility through the media The media plays an integral role
in corporate cre-dibility. Much of the reason why the business
im-age that the media has created around CSR exists, for example
focusing on scandals at companies such as Ford, Enron, and WorldCom
in the U.S. media (Figure 4), is because many CSR initiatives are
not credible and sometimes even deceitful.
The essence of CSR, when integrated properly, can be summed up
as simply good management. Enhancing corporate economic growth
through CSR is the win-win combination that the media cannot
ignore. rj
Media Tenor Quarterly Journal 1/2005 39
0 10 20 30 40 50
Cricket World Cup
Employee Work Safety
Corp.Social Donations
AntiRetroviral Use
Fraud
Tax Evasion/Offence
Scandals
Product Safety
Racism
Sponsorship
Corp.SocialCommit.
Soc.Relns: Soc.Environ.
Black Empowerment
NegativeNo clear ratingPositive
Passage: Minimum 5 seconds coverage about a company or
industry
Top 10 CSR issues - TV (SA)3
Source: Media Tenor01/01/2003 – 10/01/2003
Basis: 940 passages (273 on CSR) in 5 SA nightly news
programs
Basis:Media: BBC News at Six and Ten, ITV News, ABC, NBC,
CBS
News, SABC News Africaans, English, Sotho, Zulu/Xhosa, E-TV
SA
ARD Tagesschau and Tagesthemen, ProSieben News, ZDF heute and
heute journal, SAT.1 18.30, Deutsche Welle TV Journal German and
English, RTL Aktuell
Time: 01/01/2003 – 10/01/2003Analysis: 22,492 passages in 20 TV
News programs (1,009
on CSR)
0 10 20
Corp.SocialCommit.
Trad.Medicine Costs
Envirnmnt.Condtn.
Racism(Not in Comp)
Sponsorship
Product Recall
Soc.Relns: Soc.Environ.
Scandals
Fraud
Penalties
Product Safety
30 40 50
NegativeNo clear ratingPositive
Top 10 CSR issues - TV (U.S.)4
Basis: 1,300 passages (119 on CSR) in 3 US nightly news
programs
Source: Media Tenor01/01/2003 – 10/01/2003
Passage: Minimum 5 seconds coverage about a company or
industry
The media plays an integral role in corporate credibility. Much
of the reason why the business image that the media has created
around CSR exists, for example focusing on scandals at companies
such as Ford, Enron, and WorldCom in the U.S. media (Figure 4), is
because many CSR initiatives are not credible and sometimes even
deceitful.
0 10 20 30 40 50 60 70Nissan Motors
Philip Morris (International)Coca-Cola
Morgan Stanley Dean WitterHonda
JP Morgan ChaseAhold
Bank of AmericaSchroder Salomon Smith Barney
Toyota Microsoft
Glaxo SmithklineDaimlerChrysler
CitibankImclone Systems
Credit Suisse First BostonMerrill Lynch
GMWorldcom
EnronFord
NegativeNo clear ratingPositive
Top 20 CSR Companies (coverage volume) in US Media
5
Passage: Minimum five lines (or 5 seconds) of coverage about a
company or industrySource: Media Tenor01/01/2003 – 10/01/2003
Basis: 83,206 Passages in US Media ( 1,909 on CSR)
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