This editorial will appear on the Communicate issue 184, Q2 as I am the editor in chief of the magazine in question.
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For
companies, love is a three-letter word.
Is
there an alphabet soup to make companies feel better? Let us try these:
• CSR: Corporate Social Responsibility
• DEI: Diversity, Equity, and Inclusion
• ESG: Environmental, Social, and Governance
Corporate
Social Responsibility (CSR) initiatives have increasingly become a focal point
for organizations striving to align their operations with ethical standards and
societal expectations. However, despite the growing emphasis on CSR, many
companies encounter significant challenges that hinder effective
implementation. The failure of CSR initiatives often stems from a lack of
genuine commitment from leadership, insufficient stakeholder engagement, and
inadequate resource allocation. These shortcomings not only undermine the
intended impact of CSR efforts but also contribute to skepticism among
consumers and communities regarding corporate intentions.
Furthermore,
the divergence between assimilation and integration programs within an
organization can exacerbate these failures. While assimilation involves the
adoption of external social norms into corporate culture, integration requires
a more profound transformation that aligns business objectives with social
values. When organizations struggle to reconcile these two approaches, they
risk creating disjointed initiatives that fail to resonate with both internal
stakeholders and external audiences.
Diversity,
Equity, and Inclusion (DEI) programs have become a staple in organizations
aiming to foster inclusive environments and promote social justice. However,
despite their widespread adoption, many DEI initiatives face significant
challenges that hinder their effectiveness. Research indicates that these
programs often fail to achieve sustainable change due to various factors, including
employee resistance and the complex nature of measuring success.
One
primary reason for the lack of effectiveness in DEI initiatives is the subtle
resistance exhibited by employees. Researchers emphasize that resistance can
manifest in ambivalent ways, complicating efforts to gauge support for these
initiatives. Employees may outwardly endorse diversity while undermining it
through passive-aggressive behaviors or disengagement. This duality suggests a
deeper issue within organizational culture, where superficial compliance does
not translate into genuine commitment to diversity goals.
I
am trying to be very simplistic here, while untangling something legally very
complex, but the gist of it is this: Corporations are considered “persons” under U.S. law. As a person, one is
expected to be ethical toward their families, neighbors, and communities at
large.
It
has actually been proven, however, that inside every act of generosity lies an
element of selfishness. Meaning: If I do good, will I be rewarded in the
afterlife? Will God return my act tenfold? Will I gain good karma? Naturally,
in the same vein, companies expect their contributions to society to ricochet
back to their sales. (According to the World Economic Forum in 2021, across 25
countries surveyed, 70% of respondents stated they prefer to buy products from
companies with values.)
According
to the MIT Climate Portal, carbon offset credits “fund
specific projects that either lower CO₂ emissions or ‘sequester’ CO₂—meaning
they take some CO₂ out of the atmosphere and store it. Some common examples
include reforestation, building renewable energy, carbon-storing agricultural
practices, and waste and landfill management.”
Here
are some examples of greenwashing:
• In 2019, McDonald’s
introduced paper straws that turned out to be non-recyclable.
• The European court ordered Shell to reduce its carbon
emissions by 45% by 2030 compared to 2019 levels. It was the first time a
private company had been ordered to reduce emissions by a fixed amount within a
defined time frame. (This ruling was overturned by the Court of Appeal in The
Hague in November 2024.) Meanwhile, the company still claims in its ads that it
supplies 100% of household energy—despite that energy simply coming from the
grid.
• Back in 2020, Delta pledged $1 billion for a plan that
included carbon offset credits and supposed reduced jet fuel use to cut
emissions. The company is now being sued over its claim to be “the
world’s
first carbon-neutral airline.”
• As part of its pledge to recycle all packaging by 2030,
Coca-Cola—through WPP Open X, led by Ogilvy New York—transformed its iconic
script logo to encourage recycling. The logo, now appearing crumpled like a
ready-to-recycle can, debuted in major Latin American cities. However,
considering the company is the world’s
largest plastic polluter, many question the motivation behind the campaign.
Some
brands, on the other hand, end up playing both sides of the field, making any
judgment incredibly complex.
Take
Zara as a generic example. On the one hand, several factors bolster its
reputation:
• Sustainable Collections: Its “Join
Life” line uses organic cotton, recycled wool, and other sustainable materials.
• Textile Recycling Program: In-store recycling bins are
available for customers to deposit used garments.
• Energy-Efficient Stores: Many retail locations now run on
renewable energy.
However,
on the other side of the spectrum:
• Fast Fashion’s
Environmental Impact: Zara’s
model of quickly producing trendy, cheap clothing in large quantities is
inherently unsustainable.
• Worker Exploitation: The brand has long faced criticism for
poor working conditions and low wages in its supply chain.
• Greenwashing: Its recycling schemes, while promoted, are
relatively small compared to the business’s overall scale.
Another
brand, Patagonia, is often seen as a beacon of environmental protection.
However, paradoxically, it must still sell products to fulfill its objectives.
Some of Patagonia’s
positive factors include:
• Recycled Materials: Many products are made from recycled
content.
• Fair Trade and Ethical Sourcing: The company partners with
Fair Trade-certified factories.
• Repair and Reuse Program: Customers are encouraged to
repair and reuse products, promoting a circular economy.
That
said, Patagonia is still a business, and like others, it has trade-offs:
• Shipping Impact: The carbon footprint of global
distribution remains high.
• Synthetic Fibers and Microplastics: Even recycled
synthetics release microplastics into water systems.
• Pricing and Accessibility: High prices limit access to
eco-friendly options for some consumers.
When
it comes to DEI, the picture is, at best, a mixed bag. News cycles now proclaim
that DEI is dead. Several major U.S. brands—including Bud Light, Target, John
Deere, and Lowe’s—have
faced pushback. The phrase “Go woke, go broke” is often repeated
like a mantra.
Still,
according to U.S. company data:
• 75% reported an increase in women in leadership; only 14%
saw a decline.
• 56% saw an increase in senior ethnic minority executives;
only 23% experienced a decline.
• Companies sharing disability workforce data doubled in the
past three years.
• 14% now have an LGBTQ+ board member.
Yet
despite this progress, McDonald’s—like
many companies—has pulled its targets for "aspirational representation goals"
in senior leadership and supplier diversity. Still, 30% of its leaders come
from underrepresented groups, and 25% of its suppliers are diverse-owned,
fulfilling previously stated quotas.
Meta,
meanwhile, dismantled its DEI program at the start of 2025, just before the
investiture of the 47th U.S. president—who then issued a presidential order
banning DEI programs in federal agencies. This move has sent shockwaves through
the private sector. Some companies are pulling back entirely; others are reorganizing.
But this is no laughing matter—it’s
a directive from the top of the chain.
In
our region, even gender balance remains a struggle. Just 31% of GCC marcomms
(marketing communications) professionals report equal or near-equal male–female
leadership representation (defined as 40–60% in favor of any gender). A
majority (54%) report low representation, and almost a third cite very low
representation, where women make up fewer than 25% of leadership. Only 30% say
a woman holds the most senior role—CEO, CMO, MD, or founder—in their
organization.
To
call all of this “confusing” is an understatement. What
one region struggles with isn’t
even on the radar of another. There is no one-size-fits-all solution for CSR or
DEI. Each society, community, and country faces its own unique set of
challenges.
But
for companies, sometimes, simplifying to three letters is more than enough.
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