Climate change has business in a fluster (12/19/2007)

Corporations could be wasting millions of dollars by jumping on the climate change bandwagon, a Queensland University of Technology researcher said.

QUT corporate responsibility researcher Dr Jennifer Bartlett is embarking on a study that would help businesses identify what it was their stakeholders wanted, what society's expectations of business were and how best to track the success of climate change projects.

"A recent change in consciousness means businesses are keen to engage in planet-friendly projects, but they are unsure about what sorts of projects would appeal to their stakeholders and are tempted to copy the undertakings of other organisations," Dr Bartlett said.

"Corporate social responsibility (CSR) used to be considered fluffy stuff, but now corporations are paying attention. It's become a catchphrase and is gaining currency but no one really knows what it means.

"Many companies see addressing climate change as a good way to appeal to their stakeholders, which includes staff, customers, share holders, political groups, regulatory bodies and the public."

Dr Bartlett said some companies were promising to plant trees while others promoted water conservation and energy efficiency. One novel project involved putting earth worms in a building's basement, but there was no actual way to tell if these CSR projects were hitting the mark with their stakeholders.

"In some boardrooms, people are getting in a fluster about being socially responsible," she said.

"They don't know what to do and then someone suggests an idea and they jump on it even though it may not be the best idea for that company.

"The problem is that if a project fails to appeal to stakeholders, it could cost organisations millions of dollars."

Dr Bartlett said communication with stakeholders and the community would help point businesses in the right direction.

"Businesses must understand what their stakeholders want," she said.

"They need to talk to their stakeholders to determine what sort of plans will gain them kudos.

"They must also be perceived to be socially responsible to attract the best employees and loyal customers."

Dr Bartlett said CSR was of benefit to everyone if organisations engaged in it wholeheartedly.

"Customers and stakeholders want their voices heard and businesses are starting to realise this. The result is there are now community consultations and the 'little people' are getting a say."

Note: This story has been adapted from a news release issued by the Queensland University of Technology

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