Being a good corporate citizen pays dividends

Business in the Community boss Steve Costello says companies that payattention to their corporate social responsibilities get great rewards,writes Ciaran Brennan

More than 70 per cent of Irish consumers say that environmental concerns influence their purchases to some degree, while 86 per cent agree that when price and quality are equal, they are more likely to buy a product associated with a cause.

These kinds of statistics make it imperative for businesses to pay attention to corporate social responsibility, according to Mr Steve Costello, chairman of Business in the Community Ireland.

"It's a total, non-negotiable bottom-line issue. These consumers vote with their money," he says.

Business in the Community Ireland celebrates its second birthday this month, with Mr Costello at the helm as chairman since its inception.

The former head of Marks & Spencer Ireland is infectious in his enthusiasm for the project.

"I think it is a hell of an important job and the spin-offs for Ireland are immense," he says.

According to Mr Costello, business is facing a host of new challenges such as greater regulation, rising environmental and social concerns, and pressure from the media and consumers to account for its behaviour.

These challenges are all prompting companies to consider their role in society in dramatically different ways, he says.

Corporate social responsibility is about the voluntary efforts of companies to be good corporate citizens, he says. And this is where Business in the Community comes in - by providing an organised platform for business to contribute to social and economic regeneration.

But there is a definite business case for the concept, argues Mr Costello.

"In this day and age, companies have to build their reputation, they have to build their brand and this is a process by which they build and sustain their brand image."

Companies are not engaging in this out of a sense of philanthropy alone, according to Mr Costello.

"Businesses are doing this to get competitive advantage out of it. It's not just some kind of a Good Samaritan concept. It's about getting it right in the workplace. It is about making your employees top quality, who want to stay with the organisation, support the aims of the organisation, improve their productivity because they believe in the organisation. It is a hard-nosed business concept."

He adds: "It's about looking at ways of minimising your risks through reputation and brand. It is also about minimising your costs through good environmental practices."

Mr Costello should know what he is talking about - he has vast experience in the area of business initiatives in the community. He has been chairman of the Northern Ireland Business Education Partnership since 1995 and was vice-chairman of Business in the Community Northern Ireland from 1996 to 1997.

Mr Costello was also an executive member of the Dublin Chamber of Commerce from 1999 and is currently chairman of the Dublin Schools Partnership, as well as chairman of Business in the Community Ireland.

He also has a long track record in business in Britain and the Republic. Born in London to Irish parents in 1950, he graduated in 1972 with a BA Honours degree in economics from Lancaster University and joined Marks & Spencer in the same year. He was appointed store manager in 1986 and moved to Northern Ireland in 1987.

"I was probably seen as a safe pair of hands to send to Northern Ireland. I knew a lot about Ireland," he says.

He was promoted to country manager in Northern Ireland from 1994 to 1997 and occupied the same position in the Republic from 1997 to 2001. He retired in 2001. He now devotes all of his time to the various organisations he chairs. Last year, around 7,000 volunteers were working in the field of business and education in Northern Ireland.

"That has taken eight to 10 years to develop. You develop at a pace you wouldn't call fast but you would call it deliberate," he says.

A non-profit organisation, Business in the Community Ireland is already supported by 21 companies. Its founder members include: Aer Rianta, AIB, Anglo Irish Bank, An Post, Bank of Ireland, C&C, Cap Gemini Ernst & Young, Coillte, Eagle Star, Eircom, Ericsson, Esat Group, ESB, Green Isle Foods, Guinness, IBM, Johnson & Johnson, KPMG, Marks & Spencer, Penneys and Tesco.

Mr Costello says the group's aim is to engage the top 70 companies in the Republic within the next two years, adding that progress is deliberately cautious to make sure members are committed to the concept.

"It takes a long time because companies need time to digest all of this. It's new, it's powerful and they want to make sure it's right for them. We want companies who believe in it. We don't just want anyone to join. We want quality. We want them to deliver quality and recognise their responsibility."

As well as offering advice and benchmarks to business on best corporate social responsibility policy and practice, Business in the Community also offers a number of programmes such as employer supported volunteering, the schools business partnership and the linkage programme.

Under employer supported volunteering, employees at all levels of an organisation are supported to give their time, skills and resources to community projects.

"By and large, most volunteers come back with enhanced skills and a greater understanding of the principles and values of the business, and greater loyalty to the business," said Mr Costello.

For example, Business in the Community has joined forces with the Special Olympics World Games to encourage and organise corporate volunteering for the Special Olympics, which will be held in the Republic in 2003.

Under the schools business partnership, 118 schools, which are designated as disadvantaged, are being matched to a local business. That business supports the school through a number of activities, such as student mentoring and summer placement programmes.

The linkage programme is a joint initiative between the Probation and Welfare Service and Business in the Community where ex-offenders are supported to enter the labour force through personal development, training and employment programmes. Since it was set up in February 2000, the programme has successfully placed 367 people in employment.

"We are working with the homeless as another programme," explains Mr Costello. "And we're now working on a viable environmental best practice programme."

Mr Costello, who was awarded the MBE in the Queen's birthday honours list in 1997, recently moved back to Northern Ireland with his wife Margaret following his four years as head of Marks & Spencer in the Republic.

He now divides his time between the North and the Republic and is planning to buy an apartment in Dublin to facilitate his work in the Republic. His son, Gregory, still lives in Dublin and is studying marketing at Portobello College, while his daughter, Clare, is studying at the College of Law in York, England.

Despite his many years working in business/community relations, Mr Costello's enthusiasm has not waned, but he concedes it can be tough.

"You have to be a believer," he says. "You need passion to remain motivated because at times businesses may think they haven't the time for this. I think business gets it right eventually but at times the priorities are different."

He adds: "The pressure won't come from business itself but it's coming from the stakeholders in the business, the customers and the staff."