Wind turbines on the Tararua mountain range on the outskirts of the town of Palmerston North, New Zealand.
Wind turbines on the Tararua mountain range on the outskirts of the town of Palmerston North, New Zealand. Reuters

Companies in New Zealand are lagging behind in Corporate Social Responsibility (CSR) initiatives, when compared to their global counterparts. This was revealed in the report of State of CSR in Australia and New Zealand Annual Review.

Worldwide CSR is a vehicle for most companies to promote environmental and social objectives besides the routine business operations aimed at market success, reported Stuff.Co. Nz

Global Examples

There are many global companies inspiring the peers with impressive CSR initiatives. One name is the clothing major Toms. It donates a pair shoes to the needy children. The coffee company Starbucks is special with its green guidelines to ensure that its coffee brand is produced most sustainably. In New Zealand, one conspicuous example is the New Zealand Superannuation Fund aligned with United Nations Principles for Responsible Investment. Sovereign, an insurance firm, showcases an electric car with an on-site charging station.

CSR Annual Review

The State of CSR Annual Review in Australia and New Zealand was prepared by Melbourne's Deakin University and Auckland public relations company Wright Communications. Nikki Wright, Managing director. Wright Communications noted that companies in New Zealand have been slow to adapt CSR. Fewer organisations get involved in CSR programmes and report their CSR activity.

The report followed a survey that probed the CSR priorities of Kiwi companies for the next 12 months. Nearly all respondents wanted to build stronger relationships with stakeholders. Some of them wanted to prioritise internal support for CSR-sustainability approach. Others wanted to measure the impacts and outcomes of their initiatives and strengthen social licence to operate waste and augment recycling initiatives. According to Wright, even though the Kiwi organisations are less active in CSR, plenty of advantages are awaiting them. The study highlighted how CSR reporting will benefit the companies.

The top five areas where CSR reporting can add value are:

  • Building reputation for a responsible business
  • Contributing to brand positioning
  • Understanding the material issues affecting the organisation
  • Engaging in strategic conversations
  • Improving stakeholder engagement.

Matthew Mimms, an organiser of the annual responsible-investing conference in New Zealand reasoned that the perception of CSR will increase business cost may also be one reason hampering the CSR take off.