Across all business areas from creating shareholder value to engaging customers and employees, the report has found that CSR activities have added value – from 19% increase in profitability in one study to outperforming other organizations by more than 40% in another. The message to businesses is clear – ethical practice, CSR performance and the “bottom line” are more closely linked than ever.

Employees made a greater contribution towards their organization if they saw it as being a more responsible employer and this in turn influenced their decision to remain with that employer. Conversely, a strong correlation existed between increased sales volume and the perceived quality of line management, corporate culture, employee commitment and customer retention. Similarly the studies that concentrate on CSR and customer preferences show that the highest levels of employee satisfaction relate to the highest levels of customer loyalty and earnings.

However, the report shows that there is a lack of leadership from the top in putting CSR at the heart of business. The report recommends a four-pronged Leadership Agenda to help business leaders relate to their stakeholders. This includes:

1. Baseline analysis: know where your organisation stands with its current CSR activities.
2. Strategic positioning: decide where, in comparison with the baseline analysis, you want your organisation to be positioned (both with peers and competitors and in regard to CSR indices).
3. Engagement: understand and engage with your stakeholders.
4. Action: implement, integrate and evaluate best practice CSR policies and activities in line with business strategy.