CSR Budgets have been increasing in the last decade, and continue on an upward trend. That is good news, given that companies that manage their CSR matters effectively are generally financially stronger. What is not clear is whether or not companies are effectively allocating resources to create the most value from what for most organisations is a relatively small spend.
If the value of CSR is quantified, then it may well be that the cost/benefit equation shows that CSR is well worth investing in. M&S registered a £138m return on a £40m investment in CSR.
This piece of encouragement should see CSR budgets massively increase. Of course, measuring current costs of the way business is done in an organisation can be tricky to sell internally, and management can only conclusively track the value from CSR programmes by measuring legacy costs.
Big chunks of CSR budgets are wasted, but making bigger, more directed spends will lead to bigger financial rewards for most companies. In order to quantify the effect of CSR, companies must increase their spend not only on measuring current costs, but on calculating the effects of any changes. Aggregating a big number from the value created by CSR then becomes easy.