Companies Corporate responsibility may relate to occupational safety or data collection, but it has not yet progressed to innovation or the prevention of environmental loss.

Responsibility boom has taken over Finnish companies in just a couple of years, but it is not yet profitable until innovation and the development of solutions, according to the corporate responsibility network Fibs’ Corporate Responsibility 2021 study.

Finns corporate responsibility work is increasingly focused on risk management and mitigation. Only less than ten per cent say that responsibility is a major starting point for innovation and development.

Here is the leader of Fibs Helena Kekin according to the turn of the next great leap. Responsibility is now reflected in speeches and strategies, but it has not yet become a driving force.

Major the reason for the responsibility work is to build a reputation and increase the value of the brand, according to the companies. The next main reasons are to increase sales and increase customer satisfaction.

Companies are beginning to recognize that responsibility work also has a positive impact on business. 37 percent of companies are already aiming for sales growth, compared to 18 percent a couple of years ago. One in five companies is applying for an increase in the value of a share, compared to only 7% in 2019.

“Responsibility is now also aimed at short-term benefits, while traditionally only more difficult-to-verify business benefits in the longer term have been seen in corporate responsibility work,” says Kekki.

Nearly every company surveyed, 97 per cent of respondents, believes it has a positive impact on the environment or society. However, only a quarter has strong evidence of the effects.

“Companies could provide solutions to the environmental challenges of our time. A lot of money will be channeled into these solutions, so focusing on them would be profitable even from a commercial point of view, ”says Kekki.

According to him, sustainability professionals would have a lot to contribute to the development of the business of companies if they could just make a difference at the right tables.

“I think there is a lot of untapped know-how in companies. Sustainability professionals should be involved in planning where the company will be in five years or what new products will be developed. ”

Climate change 66% of companies already consider it an important topic. Almost one in two companies has also carried out a human rights risk analysis. In contrast, natural loss and water impacts are a major theme for only 13 percent of businesses.

Kekki thinks this is due to the fact that climate issues have been strongly on the wallpaper, while the loss of nature is only just becoming a theme in business. For example, the World Economic Forum and the astronomer who shook the world of the economy this year Partha Dasguptan the report has highlighted the significant risk of natural loss to businesses and the economy.

Read more: A star economist in Cambridge warns: The standard of living in the West will fall as we pump out our most important capital.

Sustainability work is not yet properly resourced in companies, Kekki says, and even a small amount of resources are allocated to combating the climate crisis, for example.

“Financiers, customers and legislation are turning their attention to climate action, so they are also the focus of most development work. However, I believe that biodiversity issues will be addressed in the short term. “

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“The company itself must be able to reliably determine what are the key issues for its own responsibility work.”

Responsibility is a buzzword that companies use to care about the environment and people. However, it clearly means different things to different companies.

According to Kek, companies themselves determine what responsibility means to them, as it also depends on the business they do.

In a manufacturing company, responsibility can mean occupational safety, well-being at work and the environmental burden of operations, while for a company focusing on the platform economy, the principles of data collection and use are an essential issue of responsibility.

The majority of companies have guidelines for responsible data processing and use. Anti-corruption work has also increased in companies, as has the means for employees to report abuse.

“The company itself must be able to reliably find out what are the key issues for its own responsibility work,” says Kekki.

Fibs’ survey included 179 CEOs and managers responsible for corporate responsibility among Finland’s 1,000 largest companies.