Consumer Role in CSR
Consumers are becoming more interested in Corporate social responsibility (CSR), a concept that has also attracted growing attention from companies in Canada and around the world. CSR has been described as the business role in sustainable development, and the pursuit of the ‘triple bottom line’— an approach to doing business which aims to integrate and balance economic, environmental and social performance, with the goal of continuously improving all three.
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Consumers have an important role in encouraging businesses to adopt and advance CSR . Many businesses make a sizeable effort to learn about their customers’ preferences and opinions, so they can create products and services that people will want to buy. When consumers care about issues like the environmental performance of a company and its products, or labour conditions in foreign factories, corporations take notice. Consumer opinion can be translated into business action for sustainability by consumers taking these issues into account when they buy, invest, or provide feedback to businesses.
Consumers care about a broad range of issues related to CSR . Here are some examples:
Economic interests
- quality products & value for money
- business accountability & transparency
- shareholder return on investment
- opportunities for Canadian jobs
- economic development
- technological progress
- fair international trading relationships
Environmental problems
- global warming & climate change
- environmentally friendly products & services
- energy-efficient products & buildings
- reuse, recycling & waste management
- transportation of people & goods
- endangered species & habitat protection
Social concerns
- nutrition & health issues
- human rights & gender
- fair labour practices
- community involvement of businesses
- ethical treatment of animals
Do your purchases and investments balance your concerns and reflect your opinions?
Knowing what you want
Making consumer choices that are in line with your concerns about social, economic and environmental issues is an important part of advancing sustainable development. Being a sustainable consumer—whether you’re concerned about climate change, animal welfare or labour issues—starts with being an informed consumer. Many of the same methods that smart consumers use to find products offering the best quality and value can also help you find out about a company’s record on the issues you care about.
Finding information about a company’s commitment to CSR can start with a mouse click or visit to your local library. For example, if you want to know more about the CSR performance of a manufacturer, you could start by visiting its corporate Web site and looking for information under ‘Environment’, ‘Sustainability’, ‘Accountability’ or ‘Social Responsibility’, as well as CSR .
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Lifecycle management Companies are increasingly paying attention to the full lifecycle of the products they sell. This includes more closely managing the supply chain so the company is aware of the origin of all materials and components, as well as the business practices of their partner organizations. Lifecycle management also involves taking responsibility for products at the end of their lifecycle, through the support of reuse and recycling programs and ‘take it back’ initiatives.
Some companies publish stand-alone CSR reports complete with commitments, an implementation plan and performance reporting. Other companies include CSR -related information in their annual reports. Check out these reports to find out about the commitments companies are making in areas such as energy efficiency, lifecycle management, and the communities where they operate.
Evaluate the source. Look for information from the company, but also about the company. Search government publications and independent reports that evaluate or compare the performance of products and companies. Magazines and online consumer guides can also provide useful information. It may make a difference to you if a company has received an award or recognition for corporate leadership on CSR .
Everyday decisions. Of course, most people won’t conduct a major research project before every purchase. But everyone can aim to be more conscious of their everyday role as a consumer. If you want to know about a product or service, ask the person selling it to you! Learn about product labelling programs, read product information and ingredient lists, and evaluate product claims and certifications. Also, find out about product labelling and certification programs that exist. To begin, check out the Resources for Consumers page. Taking these steps will help you make more informed decisions.
Consumer Purchasing Power
Consumer purchasing power has long been understood as a significant driver for product quality, safety and innovation. Today, consumer influence in support of sustainability can be seen in marketplace trends, such as the growing number of hybrid automobile models, the popularity of eco-tourism, and the increasing availability of organic and fair trade foods. These sorts of changes happen because business understands that their customers have evolving expectations about both the products and services they buy, and the corporate behaviour of the companies behind those products and services.
What is ‘socially responsible investing’?
Socially responsible investing (SRI) has been gaining momentum in Canada, driven by consumer concern and growing demand for ethical/environmental investment product lines. The first SRI mutual fund was launched in 1986. Many investors believe that a commitment to CSR will improve long-term profitability for companies and shareholders. In fact, the SRI market has itself become a significant driver of CSR . While there is no single standard for this kind of investment, there are a number of sustainability indexes and rating systems to support your ethical investment decision-making. If you are looking to invest, you might check out the Social Investment Organization (SIO): the Canadian Association for Socially Responsible Investment, or speak to your investment advisor.
You vote with your dollars. When you renovate your home, buy a pair of shoes, invest for your retirement, or go grocery shopping, your purchases support ways of doing business that may have consequences for the economy, the environment and people around the world. Perhaps the most crucial contribution consumers can make in advancing CSR is to consider the economic, social and environmental consequences when making consumer choices.
Beyond Purchasing
The consumer role in CSR does not end with the decision to purchase (or not purchase) a product or service. Communicating with manufacturers, merchants and service providers can have a significant influence. Make your opinions known and encourage CSR by noting responsible business practices. For example, if you dislike a company’s use of a particular component in their products, encourage them to eliminate it and congratulate them when they do. Putting your thoughts in writing can make even more of a difference.
Going further, you could decide to communicate your concerns to elected representatives, participate in consumer campaigns, or join organizations that share your concerns. Some people choose to become advocates for CSR in their workplaces, or members of local sustainability initiatives. Every consumer can choose how active they want to make their role in CSR .
