Poll: Majority of Corporate Executives Will Increase Environmental Spending

CHICAGO, Illinois, September 12, 2007 (ENS) - A majority of executives believe that corporate responsibility programs can positively impact their business and help achieve strategic goals, finds a survey of more than 500 executives conducted by Grant Thornton LLP, the U.S. member firm of global accounting organization Grant Thornton International.

Only a quarter of survey respondents agreed that profits had to be sacrificed, while three quarters believed corporate responsibility could enhance profitability.

As a result, 77 percent said they expected corporate responsibility initiatives to have a major impact on their business strategies over the next several years.

The same 77 percent anticipate more spending on environmental programs, 50 percent expect greater allocation to social responsibility programs and 45 percent told questioners that economic/governance initiatives will see more funding.

"Corporate responsibility programs have moved out of the realm of public relations to become real tools for improving the bottom line," said Jim Maurer, Grant Thornton's national managing partner of the consumer and industrial products practice. "Companies are realizing that strong investment in corporate responsibility programs is both a civic obligation and a successful business strategy."

The Grant Thornton Business Optimism Index, a semi-annual measure of confidence among U.S. business leaders, hit an all-time low in June, yet a majority of the executives surveyed say their companies will increase investment in corporate responsibility.

Respondents felt that tax incentives, customer support, and innovative technologies were most likely to prompt companies to invest more heavily in environmental initiatives.

"Today, corporate responsibility programs are a large part of what customers demand," said Maurer. "What's more, if implemented correctly, they can also serve as a highly effective means of recruiting and retaining talent."

The survey also found that 72 percent of respondents believe that government should regulate companies for their effect on the environment and 56 percent said companies should be regulated for their effect on human rights and labor practices.

Sixty-eight percent of those surveyed said they expect environmental responsibility reporting to be mandatory within the next three to five years, yet 55 percent say they have no plans to do any kind of corporate responsibility reporting.

Pressure to pursue corporate responsibility programs in the future will come chiefly from consumers, 62 percent of exeuctives surveyed believe.

Respondents said the four greatest obstacles to successful execution of corporate responsibility programs are - focus on quarterly earnings or other short-term targets, cost of implementation, measuring and quantifying return on investment, and a non-supportive corporate culture.

The three greatest benefits of enacting corporate responsibility programs are - that it improves public opinion, improves customer relations and attracts and retains talent.

BusinessWeek Research Services conducted the detailed study of corporate responsibility in partnership with Grant Thornton. More than 500 online surveys were conducted with business executives from June 21-29, 2007. The survey included in-depth interviews with 10 executives involved in the development and implementation of corporate responsibility programs.

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