Why you need to remember CSR even in times of crisis

February 19, 2023 Caroline Krogholm Pedersen

It’s no secret that times are rough for many companies these days.

And in times of crisis and financial hardship, many see themselves forced to cut down on costs one way or another.

But what will, or wont make the cut?

We know it can be tempting to go "back to normal", and only focus on profits and sales, and push ESG efforts back.

But in the long run that is a bad idea, and we have listed five reasons why:

We’re all human beings, and we need to be decent to one another.

That means acknowledging that your decisions affect many people – such as the workers along your supply chain.

Deciding to cut back on your CSR efforts could have serious consequences for their working conditions.

Consumers expect companies to work with CSR and ESG, and those expectations don’t disappear when you go through a crisis.

Especially in our industry.

In fact, people will remember the companies that play prominent roles during crises, and their attention is likely to extend after the crisis.

CSR is not exactly a stagnant business area.

It’s developing rapidly – and lawmakers are reacting with more legislation.

That means that CSR is no longer a nice-to-have, it’s a need-to-have.

So, if you cut down on your CSR efforts, you risk having to face even bigger challenges in the future.

You might decide to stop working with CSR while your competitors continue.

They will reap the benefits of that work and attract new customers.

This means that they may gain a competitive advantage over you.

Working with and committing to CSR and ESG issues shows that you take responsibility.

If you deprioritise CSR, some may interpret it as you not caring as much as you have previously expressed.

And that can make you appear dishonest and untrustworthy, negatively affecting your reputation.

Of course, cutting expenses is not always a voluntary choice.

But we encourage you to really consider how much or if you should cut down on CSR.

Because once the crisis ends, you can’t take back your actions.

If you’re unsure of where to go from here, the specialists from Sustaina Company are here to help.

We’re only a call or an email away.

Check out how we can help below.