One of my biggest grips about the mortgage default industry is the minimal leadership to incorporate Corporate Social Responsibility (CSR) programs.
Yes, that statement is a mouthful. Plus, some would say that CSR only applies to international conglomerates like Disney, IBM and BP? While other might say, what exactly is CSR?
For the next few weeks I have a two-part goal.
1. Help homeowners, consumers, investors and real estate professionals better understand CSR.
2. Plant ideas on how anyone affected by mortgage defaults can incorporate CSR into their lives.
Those goals might sound lofty, but by understanding CSR we create a triple bottom line win for everyone, benefiting people, the planet and profits.
At this point, let’s start with a simple CSR explanation.
The goal of CSR is to embrace responsibility for the company’s actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest (PI) by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality.
CSR is the deliberate inclusion of PI into corporate decision-making; that is the core business of the company and the honoring people, planet and profit.
There are different ways to frame CSR benefits because the elements are interrelated, however they generally include:
• stronger financial performance and profitability through operational efficiency gains
• improved relations with the investment community and better access to capital
• enhanced employee relations that yield better results respecting recruitment, motivation, retention, learning and innovation, and productivity
• stronger relationships with communities and enhanced license to operate
• improved reputation and branding
In the last 10 years CSR stood for three main topics: Corporate governance, environmental management and community engagement. However now companies want to be seen as more responsible, so CSR is being seen as the new business model.
Let’s admit it … the one industry that needs to improve their responsibility index most is the real estate industry. Right?!
During the next few posts I’ll share ideas on how CSR can be incorporated by business’ within the mortgage default sector – broker/owners, title, escrow, property preservation, outsourcers, servicers and lenders.
Hopefully that insight will help increase a triple bottom line for all to appreciate.
Sources:
BSR
Industry Canada
Wikipedia
