MIT Sloan Management Review

Communicating Corporate Social Responsibility to a Cynical Public

February 21, 2013 | Laura Illia, Stelios C. Zyglidopoulos, Stefania Romenti, Belén Rodríguez-Cánovas and Almudena González del Valle Brena

Companies are increasingly engaging in corporate social responsibility (CSR) activities. But unless companies communicate their CSR achievements wisely to stakeholders, they fear being accused of greenwashing. A study of CSR communication practices in 251 European corporations yields seven guidelines for effective CSR communication.

The authors conclude that many beliefs about the risks associated with CSR communication are exaggerated, and that companies that communicate honestly about their activities have little to fear. Managers, the authors advise, should not be afraid of the media or underestimate the ability of the public to understand the complexity of CSR issues. Companies should address big issues head-on and not try to present an image of a picture-perfect company. Furthermore, communicating CSR should be the job of the whole organization — in the sense that the whole organization should set a visible example of what is being communicated. The authors also point out that saying that your company engages in more CSR than it really does can backfire and delegitimize existing CSR initiatives.

Different companies will vary in which of the above lessons apply most to them, the authors note. Companies that say they do more CSR than they actually do should understand that the public sees through such attempts.

On the other hand, companies that engage in high levels of CSR activities but do not communicate their achievements effectively need to engage more with the media and not underestimate the public’s ability to understand what they are doing. Finally, companies that engage in high levels of CSR activity and communication must be careful to avoid having that communication perceived cynically by stakeholders.

Caesars Entertainment: Betting on Sustainability

April 16, 2013 | Bruce Posner and David Kiron

In the past few years Caesars Entertainment, the world’s most geographically diversified gaming company, has come a long way toward earning a reputation as an environmental leader in the hospitality industry. It has received more than 50 awards and certifications for sustainability leadership from, among others, the Sierra Club, the EPA, and the U.S. Green Building Council. In just five years, the company has reduced its carbon footprint by nearly 10% and reduced its energy use per square foot by 20%.

Gary Loveman, Chairman and CEO, stepped up the company’s sustainability efforts beginning in 2007, during the depths of a global financial crisis, when the gaming industry was in free-fall. Caesars’ revenues were collapsing, forcing the company to reduce staffing levels by more than 20 percent. Staff members were developing creative ways to cut costs, reduce energy consumption and waste, and increase recycling, and Loveman saw an opportunity to build on their initiative. The program, dubbed CodeGreen, has become institutionalized across more than 50 Caesars properties, in part by a carefully crafted scorecard that continues to be refined. The company’s reputation as a sustainability leader is beginning to demonstrate business value beyond cost cutting, enabling properties to attract highly sought-after conference business, retain employees, and enhance loyalty among customers.

Although Caesars’ properties have greatly reduced their carbon footprint and waste, and increased efficiencies the sustainability journey continues unabated. The next stage of Caesars’ sustainability program is still being mapped out. There are questions about whether new efficiency gains and cost cutting will be more difficult to achieve going forward, but Loveman is confident that his management team and staff’s previous innovations around sustainability are a strong indication of how innovative they would be in the future.