Never mind the global crisis: In the increasingly conscientious market places of the 21st century, efforts in adopting a more “ethical” business approach continue to grow as climate change and community development issues become more real.

The trick, according to global public relations firm Edelman, is for companies to recognize the rapidly changing corporate social responsibility (CSR) expectations and engagements in their specific markets.

“At its root, CSR is still forming. It’s a little bit art and a little bit science,” said Chris Deri, executive vice president for Edelman’s CSR/sustainability, global practice leader and corporate and public affairs, during his visit to Jakarta on Tuesday, Jan. 12.

The CSR concept has been around since the early 1970s, yet had only entered mainstream business about 10 years or so ago. As said by Deri, sustainability is yet another concept inseparable from the discussion, thanks to considerations of resource limitations and more companies taking on CSR as a business strategy and a competitive edge.

“If you look back 10 to 15 years ago, the CSR/sustainability area was really characterized by defense and response. Companies were criticized for violations and have had to explain their complex supply chain and disprove negatives – it was pretty much a risk management exercise,” he said.

The second step in CSR evolution, he continued, was to use it as a tactical offense and an opportunity to rise above the competition. Then came the brand commitment phase, where companies established a unique relationship with their customers to drive loyalty and consumer behavior.

“The next phase saw all the tactics, drivers, risks and opportunities as part of a company’s business strategy,” Deri said. “While social and environmental issues were becoming competitiveness and economic issues, value creation also brought a new dimension to public sustainability debate.”

Considering the above aspects, he reckoned the upcoming phase for CSR would be for business “to become an advocacy and public engagement organization”, meaning that they are expected to develop a new culture that prioritizes engaging and influencing the public just as much as running their marketing and other strategies.

Deri made an example of extraction companies – particularly those operating in Africa – gradually becoming public health organizations providing healthcare benefits and advocacies surrounding HIV/AIDS.

“If they do not manage their public health challenge, they do not have the ability to maintain operations. This shows that companies, given how large they are, have to take on responsibilities that perhaps weren’t deemed as theirs in the past.”

Edelman’s 2009 Trust Barometer study shows a similar notion with regard to companies’ responsibilities. While governments are held most responsible for solving global challenges such as energy, environment and access to credit and health, businesses are never absolved in providing a solution.

“Across the board, people were holding businesses basically as accountable as governments for getting us into the mess we’re in. The difference is, businesses do not have permission to fix the issues alone,” said Deri.

Globally, 66 percent of respondents say companies must work in partnership with government and third parties in addressing issues. The expectations of Indonesian respondents, meanwhile, are considerably higher at 82 percent.

In Indonesia, where CSR is regulated by the government, Deri thought companies have the opportunity to turn compliance into economic competitiveness. “[Clarity in] rules means companies can plan, make investments and develop strategies that fall within the regulatory landscape.”

He compared this to what happened in the US following Bush’s opting out of the Kyoto Protocol in 2005, which resulted in a number of US-based global businesses initiating a coalition out of their need for a clear green policy in order to maintain competitiveness as global corporations.

Bambang Chriswanto, vice president and director of new initiatives for IndoPacific Edelman, noted the presence of such advocating companies a little closer to home.

“Bank Mandiri, for example, drives entrepreneurship right across the organization from core business right down to their sharia arm. Not only are these companies doing traditional CSR things, they are also advocating and influencing the public, involving customers and educating the market.”

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