Corporate community activity is hardly new. However, as Philip Spedding observes, a considered approach to Corporate Social Responsibility provides opportunities for the arts to exploit.
The concept of Corporate Social Responsibility (CSR) is relatively simple. It is about how a company manages its relationships with its communities. It is about how it addresses issues such as environmental impact, inclusion, equality, health and employment. It is about business practices, business processes and community involvement. It is about how a company treats its people ? its staff, its customers, its shareholders and the communities in which it operates. It has become the term that business can use to justify involvement in or, more worryingly, withdrawal from engagement in arts activity.
The bottom line
There are three linked reasons why a company might develop a CSR policy. Firstly, there may be a perception that more money can be made by doing so; secondly there may be pressure on it to do so (internally from staff or externally from customers); and finally there may be a sense of social obligation.
Proving the link between CSR and profit remains a key challenge. Perhaps the strongest case can be made with companies that have a clear public profile and are keenly aware of the potential impact on their bottom line from negative media coverage and public campaigns. In MORI?s 2002 survey of public attitudes towards CSR it found that:
? 87% of respondents believed that the private and public sector have a shared role to play in areas such as education and health
? 75% believed that industry and commerce do not pay enough attention to the
communities in which they operate.
Less clear cut are the motives of companies with lower public profiles. The experience of Arts & Business suggests that such companies develop CSR objectives more because of internal pressure and, occasionally, because of a sense of moral obligation. Such companies are increasingly interested in developing staff-related activity in the hope of building a stronger and more committed work force. They tend to look at volunteering and local community support as priorities.
However, amongst all the rhetoric supporting the cause of CSR, many company bosses would support Milton Friedman?s 1962 assertion; ?If businessmen do have a social responsibility other than making maximum profits for stockholders, how are they to know what it is?? Even when a company is convinced of the need to develop a CSR strategy, the depth of that commitment can vary. For some it can simply act as the rationale behind their donations policy. For others it defines their relationships with their stakeholders beyond their core business operations. For others still, it is actually part of their core business operations, encompassing and defining how they operate at every level.
?I used to wonder whether business had a role in collaboration with other institutions in civic society. Now I am convinced business can create innovative, valuable social solutions that are good for the business and for society?
Jeff Swartz
Chief Executive, Timberland
Common language
There is a persistent view among business people that the phrase ?the arts? refers to highbrow elitist activity. To mitigate this negative impression, Arts & Business has adopted a CSR language that avoids talking about the arts as a cause worthy of support and instead focuses on the powerful and unique outcomes that the arts can deliver.
? To build within the individual the self-confidence and self-worth they need in order to develop a stronger relationship with their community. By developing a sense of personal creativity within the structure of a team effort, the arts are a powerful tool to strengthen the individual.
? To bond a community of people who share common issues and concerns. The arts can act as an easily accessible means of sharing concerns and developing bonds.
? To bridge between communities, using the arts to help explore different cultures within a community and thereby develop understanding.
By clearly identifying the value to the community and individuals of arts activity, this approach has garnered support from big business. ?I can?t see how CSR and the arts are not inextricably linked. The arts can play a vital role in CSR programmes that aim to address issues such as social exclusion, diversity and staff development? said Nicky Major, Head of CSR, Ernst & Young.
Arts in business
Arts & Business actively encourages business to pursue their CSR policies through the arts. New Partners, a cash investment programme, can be used to encourage businesses to use the arts in staff development, community engagement or education; the Board Bank and Skills Bank programmes provide opportunities for companies interested in encouraging staff volunteering; and Arts & Kids encourages businesses to support the arts in transforming the lives of young people. A project involving BITC, Lloyds TSB and the CBI, amongst others, will encourage small and medium sized business to develop CSR programmes; and research has been commissioned into the attitudes of leading companies towards both sponsorship and CSR, and how the arts fit into both. The results of that research will be available later in the year. Most important however, are the growing number of stories and case studies showing how businesses are already using the arts to improve the community and benefit themselves.
The arts are already engaging with society and make a significant impact on the lives of individuals and the heartbeat of the community. We believe that this has a direct relevance for business in a competitive environment where creativity and sustainable communities are key. The arts need to get more involved in this debate to help change the way we think about business being meaningfully engaged in the community. This would be good for the community, good for the arts and good for business.
Philip Spedding is Head of Special Projects at Arts & Business t: 020 7378 8143;
e: philip.spedding@aandb.org.uk