Why Corporate Social Responsibility Is the CMO's Best Accessory
When it comes to business, corporate social responsibility (CSR) initiatives look good on everyone. And they're not always superficial; companies that go above and beyond federal regulations and requirements concerning everything from the environment to social issues often find that CSR instills a great source of internal pride and, surprisingly, often boosts their bottom lines.

One CMO who can speak at length about this -- enough to carry home a Corporate Social Responsibility Award from The CMO Club -- is Mark Hanna of Berkshire Hathaway fine jewelry subsidiary Richline Group. I've had the pleasure of doing business with Hanna on a campaign whose tagline read "because function needs fashion." The same can be said of his take on CSR: Not only appealing on the surface, but functionally fantastic for all involved.
A shining
example
Asking Hanna to describe CSR elicits a definition not unlike the
one I offered above. "In summary, it is a socially responsible
company's efforts that go beyond what may be required by regulators
or environmental protection and based on the conscious contribution
to promote positive social and environmental change." Or, a simpler
version: "The standard answer of leaving a better world than we
have now works perfectly for me," he says.
For Richline, "conscious" integration of CSR into business would be putting it lightly. Hanna rattles off a seriously impressive list of environmental and social steps forward that the company took just last year. For example, there was the installation of over 180,000 square feet of solar panels in New Mexico -- enough to power its Albuquerque facility and generate bonus energy for the state. Or initiatives to eliminate the use of conflict-region gold while simultaneously funding artisanal, mercury-free mining through legal supply chains. Or switching to more energy-efficient lighting and generators, philanthropy towards children and taking leadership roles in the Responsible Jewelry Council. Were these activities extracurricular? Yes. Were they extraordinary? You bet. However, Hanna tells me that CSR earns more for Richline than feel-good extra credit.
Investment
pieces
These activities fall under a rationale that Hanna terms "return on
responsibility" -- the idea that acting for the greater good is, in
fact, a smart business practice in fine jewelry. "We truly believe
in return on responsibility…so much so that we influenced
the Berkshire Hathaway Sustainability Summit to adopt this as the
2015 meeting theme," Hanna says. Sustainability and corporate
responsibility have been exceptionally meaningful to Richline's
position and reputation within its industry, which is where the
"return" part comes into play. In fact, it "exceeds that of pretty
much anything else we could promote for our brand. It's that
significant," Hanna tells me.
Setting the stone
With results to justify the extra time and effort, Hanna says that
management requires little convincing when it comes to new
initiatives, as everyone understands CSR is an asset to the brand.
"As keepers of the firm's reputation and in a world demanding trust
and authenticity, it is a necessary strategic goal," he says. And
with leadership's support, Hanna can set CSR even further into the
company's mold, so to speak. "I believe sustainability initiatives
have to be driven from the top and integrated into the culture,"
says Hanna. "They must become a way of doing business, require the
participation of all company resources and are not just one-off
operations projects. We should be committed to showing that an
investment in sustainability is an investment in our brand."
Showing off the goods
Something I find interesting about this topic is the way each CMO
chooses to frame his or her company's CSR activities to the public.
"To brag, or not to brag?" is the big question here. It should be
of little surprise that Richline prefers, like its jewelry, a finer
approach. "We are very conservative here," says Hanna. "Our
strategy has been to celebrate our Richline Responsible program
leadership and accomplishments only to the trade and B2B." He tells
me that, at this point, he and his team have no plans for consumer
programs or promotion.
A sparkling future
While not currently trumpeting their CSR efforts from on high, this
isn't to say that Hanna and his team don't anticipate the needs of
their market down the road. "Sticking with the responsibility
theme," he says, "I believe in the future of transparency as a
requirement by the upcoming generations of consumers." His
challenge during the rest of 2016, he confides, will be to create
more transparency in the supply chain, so much so that the Richline
brand will be recognized for its openness. Perhaps this is the true
beauty of CSR -- eventually, doing good will blend seamlessly into
the brand itself.