Social roles more important

Abstract

While the subject of corporate social responsibility is one that some risk managers still see an incidental to their operations, a group of experts at the Federation of European Risk Management Associations conference told attendees that it was an issue of "critical importance to risk managers." Bernard Giraud, director of sustainable development and corporate social responsibility for the French-based food producer Groupe Danone SA, told attendees at a conference session titled "Corporate Social Responsibility: A New Strategic Tool" that intangible assets make up a substantial share of a company's value. Investors are increasingly looking at companies' ethical and socially responsible records when making decisions, according to Nicole Notat, founder and chief executive officer of VIGEO, a French rating agency that analyzes the corporate social responsibility of businesses. Giraud told attendees that, in 2001, Danone faced an image crisis in France when it made the decision to close a number of cookie-producing factories after its acquisition of the baking company LU.