In this new edition of the Masterclasses in Managerial Excellence, we explore the issue of business transformation in the face of societal challenges: How to go beyond CSR? To shed light on this topic, we are pleased to welcome Frédéric Petitbon, Partner at PwC and author of the book “No company wins in a world that loses”! Through his experience and insights, Frédéric invites us to rethink the role of business in society and discover how to sustainably integrate social responsibility into the heart of corporate strategies.
Frédéric Petitbon shared his experience and vision on the evolution of Corporate Social Responsibility (CSR) and its integration into the heart of business strategies. He particularly highlighted the difference between CSR of the past, often limited to charitable actions driven by the convictions of leaders, and today’s CSR, which has become a strategic and regulatory imperative. CSR is no longer a mere bonus: it is a necessity to ensure the license to operate, a kind of “permit to operate” for businesses in a world increasingly attentive to sustainability issues.
From CSR to Societal Transformation
The evolution of CSR has been marked by significant events such as the European Green Deal, as well as disasters such as the collapse of Rana Plaza in Bangladesh in 2013, which highlighted the dramatic consequences of irresponsible production. These events have led Europe to play a pioneering role in establishing new standards, aiming to hold companies accountable for their global impact, whether on climate, territories, or working conditions in the value chain.
Frédéric explains that transparency has become an essential requirement for businesses, not only towards their shareholders but also towards society as a whole. This implies rigorous reporting on the social and environmental impacts of their activities. To illustrate this point, Frédéric gives the example of large retailers, who must now be accountable for their practices towards local producers, social actions in communities, and end-of-life product management.
Integrating CSR into the Heart of Strategy
One of the major challenges for businesses is to integrate CSR into the heart of their strategy, instead of considering it a peripheral obligation. For Frédéric, this requires a long-term vision and alignment with the company’s values. It’s about making CSR a true driver of innovation and value creation, just like financial objectives. As Frédéric emphasizes, “the effort should focus less on CSR strategies and more on integrating CSR into the company’s overall strategy.”
But is it truly effective to hold companies accountable? He highlights the importance of social and regulatory pressure, particularly that exerted by investors, consumers, and associations. This incentive framework pushes companies to rethink their model in a more sustainable way and to integrate environmental issues at the core of their approach.
How to Engage Teams in this Transformation?
The transformation towards integrated CSR cannot succeed without the commitment of all company stakeholders, starting with the leadership teams. Frédéric emphasizes the importance of “starting at the top” before mobilizing all employees. For him, communication on sustainability issues must be transparent and inspiring, in order to create a sense of urgency and shared responsibility.
He also reiterates the importance of leadership by example. “What example should I give?” This is a key question for any leader wishing to engage their teams in a sustainable transformation process. The credibility of leaders depends on their ability to embody the values they promote.
The Importance of Cooperation and Shared Rules of the Game
Frédéric emphasizes that collective action is essential to successfully transition towards a more sustainable model. He highlights Europe’s role in establishing common rules, such as the carbon tax, which help create a favorable framework for the ecological transition while protecting the competitiveness of European companies.
However, the transition to a more sustainable world is not without challenges. How to reconcile economic competitiveness imperatives and social responsibility requirements? For Frédéric, the key lies in innovation and the ability to reinvent business models to adapt them to a constantly evolving world.
“No Company Wins in a World that Loses”
Through this reflection, Frédéric Petitbon invites us to rethink the role of business in society, to go beyond mere profitability to contribute to a fairer and more sustainable future. As he reminds us, CSR inside must become the new “Intel inside” of the company, an essential component of its strategy and its DNA.
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