Corporate Responsibility
What constitutes responsible business? Why should we care about it? This article provides an overview of corporate responsibility and its special features in the audiovisual industry and discusses the impact of corporate responsibility from the perspective of business, society, and the industry.
In recent years, corporate responsibility has become an increasingly central part of successful business operations. Corporate responsibility refers to the company’s responsibility for the impact of its activities on the society. It is based on the goals of sustainable development to secure the opportunities for a good life for current and future generations. A responsible company exceeds the minimum requirements laid down in legislation and acts in accordance with its values in all its activities. In short, corporate responsibility is about reducing negative impact and strengthening positive impact.
Responsible operations create competitive advantage and new business opportunities for companies in all industries. In the audiovisual industry, responsible business requires that the special features of the industry are taken into account. This includes, for example, the project-based nature of the industry and its diverse field of operators. According to the Growth Agreement of the audiovisual industry (more information on Kasvusopimus in Finnish), Finland aims to become the most sustainable country in the world for audiovisual production by 2030. This ambitious goal requires solid competence in sustainability matters and new operating methods throughout the industry.
Areas of corporate responsibility
The core of corporate responsibility is in integrating responsibility into the company’s daily operations. The essential goal is for the company to identify the risks and opportunities associated with its activities and to assess the direct and indirect impact of its activities on society, aiming to minimise negative impact and maximise positive impact.
The ESG model (Environmental, Social, Governance) defines the principles of modern responsible business and forms the foundation for corporate responsibility through three pillars.
The three pillars of the ESG model
- Environmental responsibility covers the management of environmental impact and the efficient use of resources.
- Social responsibility focuses on people: well-being at work, human rights, and fair treatment.
- Governance responsibility ensures the transparency of operations, responsible financial management and leadership, and risk management.
Financial responsibility serves as an overarching element that enables and benefits the company’s responsibility work as a whole. For example, the company’s financial success and stability enable investments in environmental measures, the personnel’s well-being, and good governance. At the same time, responsible practices can also bring cost savings and strengthen the company’s financial position, for example, by creating competitive advantage.
The central concern in responsible business is long-term commitment and the ability to identify the impact of the activities on the entire organisation, value chain, and stakeholders. In an ideal situation, the company takes into account the impact of its entire operating chain and acts transparently and consistently within it.
Special features of the audiovisual industry
Awareness of the special features of the audiovisual industry helps with understanding how responsible business can be implemented effectively in the industry. As a whole, the audiovisual industry forms an extensive network of operators from content creation and production to distribution, involving production companies, individual freelancers, distributors, and theatres alike. In addition, the financing of operations often consists of many different sources, and several companies, funders and distributors in both Finland and abroad may be involved in individual productions.
Companies in the audiovisual industry often work on a project-based basis. This is why people in the industry are often employed in changing project-specific working groups. The same professional can work in several different roles during the year as both an employee and an entrepreneur. In addition to this project-based nature, the industry is personified by strong networks. Although the operating environment can bring its own challenges to the implementation of responsible business practices, this kind of a creative environment is in itself an advantage. In the audiovisual industry, the engaging nature of the work, its meaningfulness and the flexibility of the work community have been proven to be high motivators, and together, these create an ideal growth platform for building responsible operating models.
Understanding these special features from the perspective of both challenges and opportunities promotes the development of functional solutions. The journey towards responsible business activities is a continuous development process which centres around observation and gradual change despite challenges.
Impact of corporate responsibility
In recent years, responsibility has become a key success factor in all business activities, including the audiovisual industry. Responsibility is not just about external requirements; it directly affects the company’s business, reputation and competitiveness.
Business opportunities
In the audiovisual industry, responsible practices open up significant business opportunities. Funders and investors pay increasing attention, for example, to the ESG model in their funding decisions. In the audiovisual industry, funding plays a vital role in terms of business, as the realisation of productions requires significant advance investments, which are often collected from many different sources. From the funding providers’ perspective, responsibility reduces financial risks in many ways. Many funding providers also wish to promote sustainable development as one of their own key values.
In public funding, responsibility requirements are already commonplace. For example, the Finnish Film Foundation and Business Finland have included responsibility requirements in their funding. Finnish media companies, streaming services and other private financiers also increasingly assess the responsibility of projects in their content procurements.
In the international market, corporate responsibility is becoming increasingly important: EU corporate responsibility regulation, such as the CSR Directive, obligates large companies to report on their corporate responsibility and to extend the same requirements to their subcontractors. This is directly reflected in the audiovisual industry, as large media companies and platforms increasingly require verified responsible practices from their partners.
Risks
In the audiovisual industry, shortcomings in corporate responsibility may manifest as practical challenges that companies can and should address proactively. Poor well-being at work can lead to sick absences, faster labour turnover, deterioration in quality, delays in production, and budget overruns. Negligence in occupational safety matters can lead to accidents and increased costs related to them. In the audiovisual industry, risk to the company’s reputation is particularly crucial, as the industry is strongly based on trust and cooperation. Negative publicity is quickly reflected in the company’s employer image, viewer behaviour and decisions made by funding providers and partners.
Av industry and global challenges
Climate change, biodiversity loss, increasing inequality and other global challenges are topics that affect us all. The audiovisual industry plays an important role in addressing these themes, and audiences are increasingly interested in content related to these topics. While the industry tells stories about these topics, it is important that it also works responsibly in its own activities.
As global responsibility requirements are becoming stricter in all industries, companies in the audiovisual industry are also required to commit to responsible practices. It is worth investing proactively in the development of corporate responsibility; it strengthens the continuity of operations and enables long-term success.
Impact on the industry and society
Responsibility works in two directions. On the one hand, it is about the company’s impact on the society and, on the other hand, the society’s impact on the company. This is referred to as double materiality, and in the audiovisual industry, it manifests both as the direct impact of productions on well-being at work and the environment (inside out) and the external impact of changes affecting the operating conditions of the industry, such as the risks posed by climate change (outside in).
Direct impact on activities includes, for example, the following concerns
- occupational safety and well-being at all stages of production.
- promoting equality among employees.
- anti-corruption measures and responsible financial management.
- use of energy and materials in productions.
- responsibility in subcontracting chains.
- role of content in instigating public debate, shaping values and attitudes, and promoting diversity and sustainable development.
The impact of the society on the audiovisual industry can be seen, for example, in the following
- changing consumer habits and public expectations.
- challenges posed by climate change.
- technological development and digitalisation.
- changes in legislation and regulations.
Awareness of double materiality helps companies turn their responsibility work into a strategic competitive advantage. The success of companies in the audiovisual industry largely depends on their ability to understand and meet the changing expectations of society. At the same time, companies in the industry can act as pioneers and drivers of change in their own field and in the society at large. This means that the industry has both a special responsibility and a unique opportunity to have a positive impact on societal development.
Creativity
Studies have shown that responsibility and creativity strengthen each other. A psychologically safe and healthy working environment supports risk-taking and innovation, which is particularly important in creative work. When people feel that they can express themselves freely in a safe environment, they have the courage to try new things without fear of social risks.
Reporting
Measuring and reporting corporate responsibility is rapidly becoming more common. Requirements come from many directions: EU legislation, funding providers, investors, and partners. At the same time, new ways of measuring and reporting are being developed along with the creation of uniform standards and guidelines.
Responsibility reporting requirements for small and medium-sized companies in the audiovisual industry typically come from
- large companies that require their subcontractors to demonstrate responsibility as part of their own reporting obligations (such as the EU Corporate Sustainability Reporting Directive)
- public funding providers who include requirements for the verification of responsibility in their funding calls
- investors who assess corporate responsibility as part of their investment decisions
- international standards and certificates
- industry-specific guidelines
- independent desire to increase the transparency of the company’s activities and to communicate about responsibility.
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