Financial directions - CSR functions need collective voice.

(From Financial Director)

This is the main argument behind Cranfield School of Management's assessment - conducted between January and April 2003 - of CSR leaders in six multinationals, including Diageo, Pilkington, Unisys (EMEA) and Orange UK.

Current literature that surrounds CSR is based on several common flaws, claims the report. The most commonly held view is that "you do well by doing good". It argues that consumer preference will increasingly favour products and services from socially responsible, trustworthy firms. Investors will increasingly favour responsible companies, and irresponsible companies will find their cost of capital rise. Potential employees will be attracted only to responsible companies, and irresponsible companies risk skills shortages.

The report suggests that, although these arguments are "intuitively appealing", many researchers admit the link between business performance and the implementation of CSR policies is difficult to prove. Stating that CSR affects consumer preferences positively is unproven because there is a gap between consumers' stated intentions and observed behaviour, it argues.

The researchers have produced a framework (pictured), based on feedback from six companies, which finds that the current driver of CSR programmes is vision and company values. Interviewees feel that once CSR is embedded in employee and stakeholders' attitudes, the business will act more responsibly and better ...