CSR and the role of investor relations: from switchboard to catalysts

CSR and the Role of Investor RelationsCorporate governance, transparency, and ethics are increasingly featured high on the agenda of corporations worldwide. Recent corporate scandals have intensified the business world's focus on irresponsible practices and systems. The downfalls of companies like Enron and WorldCom, as well as the new business models being developed, all make clear that corporate social responsibility has to be an essential component of business decision-making and strategy.

Now more than ever, CSR needs to be fully integrated into company strategy and reach every company department. One such department, which has so far been largely ignored in terms of CSR, is investor relations (IR).

From a CSR standpoint, IR officers have up to now played the role of switchboard; connecting interested investors with internal CSR departments. Increasingly, however, investor relations has begun taking on a more complex role.

In light of these developments, this report closely investigates how IR officers currently perceive investors' interest in companies' social and environmental performance, and how this is impacting on their companies as well as the very role of investor relations. We hope that the findings presented in this report will encourage IR departments to play a more pro-active role in communicating their company's CSR performance both internally and externally.

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