How to create a strategic CSR annual report
7 tips to make a positive impact and inspire brand loyalty
Corporate social responsibility (CSR) programming is deeply meaningful to many organizations. Can CSR also make good business sense?
The good news is companies that authentically and strategically communicate the value of their social impact programs often see a positive impact on their bottom line, an increase in workforce competitiveness, and enjoy a competitive advantage. In fact, Deloitte Consulting LLP’s 2019 Global Human Capital Trends survey found that CEOs named societal impact as the top success factor for annual performance for the first time ever.
Creating a CSR annual report communication strategy can be one of the best ways to generate ROI for organizations. In addition to reporting out social impact efforts for employee engagement and investors, CSR annual reports can also reach decision-makers, customers, media, legislators, and more.
Why is CSR more important than ever?
Corporate philanthropy is not a new concept. Galas and golf tournaments have been a mainstay in corporate America, and companies have been donating to charities for decades.
More recently, how CSR is done is changing. Increasingly consumers, investors, and employees are now more aware of businesses’ stances on social, economic, and environmental issues, and they have high expectations. Consumers, especially younger ones, want to buy from companies that reflect their values. In fact, 80% of U.S. Gen. Z consumers believe brands should help make people’s lives better.
Corporate citizenship can also impact where employees want to work. Nearly nine-in-10 employees believe companies must positively impact society in addition to earning a profit.
Investors are also paying attention. According to the DeVere Group, 77% of Millennial investors say that environmental, social, and governance (ESG) concerns are their top priority when considering investment opportunities.
Companies need to have a social impact communications strategy to stay competitive. But how do they reap the benefits of this programming to support their overall business goals? One of the best vehicles is a thoughtful and transparent CSR annual report communication strategy.
Seven tips for a successful CSR annual report
1. Be authentic.
Authenticity starts with designing social impact projects that align with your organization’s mission and values.
Staying true to its brand, REI recently announced their Cooperative Action Fund to promote justice, equity, and belonging in the outdoors. In another example of meaningful sustainability, LEGO committed to making all their core products from sustainable materials, like sugarcane, by 2030. Both initiatives are tied closely to their core business objectives and are great examples of an authentic CSR program.
2. Align key messages and style to the brand. And vice versa.
Communications should reflect the larger brand, including tone, voice, and photography to gain maximum ROI from CSR annual reports. This is especially important if consumers are loyal to the brand because of its social impact positioning. In cases where the messaging for CSR initiatives is super strong, it often makes sense to infuse the core brand communications with CSR messages.
3. Budget for communications and brand.
Corporate citizenship communications should look and feel just as polished as your other marketing materials. Professional videos and photos, inspiring content, and beautiful graphic design will ensure an annual report is compelling and effective.
4. No greenwashing or woke washing.
It's cool for brands to be purpose-driven these days. When done well, companies can create real change. It requires an authentic and effective communication and brand strategy, paired with brave leadership and collaboration with stakeholders.
Consumers will know if there’s no significant work behind the claims. And they will hate it. Annual reports should be honest about progress, especially regarding diversity, equity, and inclusion (DEI) efforts. Being transparent builds trust.
5. Get some street cred.
In the world of social impact, it’s always better to “show, not tell.” Third-party designations, spots on nonprofit Board of Directors, awards, certifications and case studies demonstrate leadership and credibility in corporate citizenship.
6. Describe the impact.
It’s not enough to list dollars donated or volunteer hours. Consumers want to know what problem was solved. Key messages should focus on the people and communities the CSR program served rather than the brand. Storytelling and data are some of the best tools for compelling reports.
7. Repackage and amplify the message
Typically CSR annual reports are deployed in the first quarter. Companies that successfully tell their story continue to share all year long. Annual reports can be repackaged into social media campaigns, infographics, press releases, new business proposals, employee profiles, opinion pieces, and thought leadership articles and leveraged to increase brand awareness.
Strategically communicating and amplifying CSR annual reports can increase brand awareness, build culture, inspire brand loyalty, and create lasting change for our communities.
