State CSR: From strategic function to public trust

Global approaches show that state corporate social responsibility (CSR) is no longer just a social initiative, but an important tool that strengthens public trust and strategic governance. Below, we present an interview given to Marja.az by Azerbaijani strategic communication and public relations (PR) expert Gunel Aliyeva.

— Gunel khanum, how is the strategic function of state CSR defined?

— In the public sector, unlike in business, CSR is based not on profit, but on public welfare and sustainable development. The main objective here is the integration of social, environmental, and governance (ESG) principles into public policy. Strengthening public trust, implementing the Sustainable Development Goals, reducing social and environmental risks, supporting regional development, ensuring transparency in governance, and upholding ethical standards are the key strategic functions of state CSR.

For example, German Sustainability Code (DNK) is one of the most important sustainability reporting standards in Germany. Its full name is Deutscher Nachhaltigkeitskodex. DNK is a framework that helps companies and organizations present their sustainability activities systematically and transparently. Its main objectives are: increasing transparency in business, promoting environmental and social responsibility, advancing sustainable governance, and preparing reports according to a unified standard. This standard is mainly intended for small and medium-sized enterprises, large companies, government institutions, and non-governmental organizations.

Companies are required to provide information for each criterion or explain why they have not done so (“comply or explain” principle). One of DNK’s greatest advantages is that it is simple and free of charge.

Let us look at another example: Fraunhofer IAIS is one of Germany’s leading research institutes, specializing in artificial intelligence, data analytics, and digital transformation. The institute supports companies in areas such as evaluating environmental and social impacts, developing sustainable strategies, and implementing ESG (Environmental, Social, Governance) approaches.

One of IAIS’s key services, the “360° sustainability assessment,” covers all areas of a company’s operations, analyzes environmental, social, and governance factors together, identifies risks and opportunities, and provides concrete recommendations for sustainable development. Through this assessment, companies gain a better understanding of their strengths and weaknesses and are able to make long-term, sustainable decisions.

In fact, this is both significant support and a major contribution from the state in helping companies increase competitiveness, reduce environmental impacts, and align with international standards.

— How does CSR affect public trust in state institutions?

— According to the Organisation for Economic Co-operation and Development 2024 Trust Survey Report, only 39% of citizens have high or moderate trust in government, while 44% express low trust.

According to the 2020 Corporate Social Responsibility (CSR) and ESG report published by the United Nations Global Compact, approximately 76% of companies implementing CSR policies stated that social projects strengthen cooperation between the public and private sectors. The report also emphasizes that in countries where investments are made in social programs, public trust levels are estimated to be on average 10–15% higher. These findings show that CSR and ESG strategies not only strengthen business reputation, but also play an important role in developing state–business relations and increasing citizens’ trust in both governments and companies.

In addition, the 2021 Governance and Social Trust Report published by the World Bank states that in countries where strong governance mechanisms and social programs are widely implemented, trust in government is 20–25% higher. Conversely, in countries with high levels of corruption, public trust decreases by an average of 30%. The report also shows that public satisfaction increases by approximately 18% in social projects implemented through cooperation between the public and private sectors.

This approach proves that CSR policies enhance the “soft power” of public administration and contribute to the formation of a socially responsible, citizen-oriented model of governance.

Overall, the fact that more than 90% of global companies have incorporated CSR and ESG strategies into their official business plans demonstrates that corporate social responsibility has evolved from a voluntary initiative into a strategic management tool. CSR policies strengthen cooperation between the state and business sector, improve the effectiveness of social projects, and encourage citizens to view the government as an institution playing a more active social role.

— How are impact and communication balanced in state CSR projects?

— One of the well-known researchers in the field of Corporate Social Responsibility and business ethics, Jeremy Moon, offers an interesting perspective in his work State and CSR. According to him, in CSR processes the state should act not only as a regulatory institution, but also as a partner.

Moon argues that in this model, communication should move away from one-way information delivery and be built on dialogue-based relationships, where all stakeholders are actively involved in both decision-making and implementation processes. This approach is based on the “new governance” model and emphasizes that cooperation between the state, business, and civil society is a core element of modern social governance

One successful example of this approach in Azerbaijan is the ASAN Service’s project ASAN Letter. I myself previously collaborated with this initiative while working in one of the companies I was employed at. The project is built on the principles of fulfilling the wishes of children from low-income families, engaging citizens in a broad volunteer movement, and fostering cooperation between the public and private sectors.

In this example, communication is not limited to simple information sharing; instead, it functions as a real mechanism of social participation that enables citizens to be directly involved in social processes.

— How do state CSR models differ in international practice?

— In international practice, state Corporate Social Responsibility (CSR) models generally differ along three main directions: digital transformation, social development, and public–private sector cooperation. Countries design their CSR policies in line with their national priorities, aiming both to improve social welfare and to modernize public governance.

For example, the government of Singapore has implemented the “Smart Nation” initiative, which is considered one of the most advanced digital CSR models. The main goals of the project include full digitalization of the country, improving citizens’ quality of life, accelerating public services, reducing environmental and transport-related challenges, and developing digital skills.

Within the framework of this initiative, smart city infrastructure, sensor technologies and intelligent transport systems, fully digital public services, AI-based governance mechanisms, and environmental monitoring systems are being implemented. In this process, cooperation between the state and technology companies such as Google plays an important role. The Singapore model demonstrates that CSR today is no longer merely a social support mechanism, but a strategic component of digital public governance.

In contrast, the CSR model of the United Arab Emirates is primarily shaped around humanitarian activity and global social development. Programs implemented by Emirates and the Emirates Airline Foundation are focused on building schools in Africa and Asia, providing educational materials, delivering medical assistance to children in need, organizing humanitarian aid during natural disasters, and promoting volunteer programs.

The company uses its logistics and aviation capabilities to ensure the delivery of humanitarian aid to different regions. This model shows that state CSR can function not only as a domestic social policy tool, but also as a mechanism for global humanitarian impact and international social solidarity.

— How is the effectiveness of state CSR projects measured?

— The effectiveness of state Corporate Social Responsibility (CSR) projects is typically assessed through a multi-dimensional system of Key Performance Indicators (KPIs), covering social, economic, public, institutional, and environmental dimensions.

In measuring social impact, key indicators include the number of beneficiaries, employment outcomes, and results achieved in education and healthcare. Economic impact is evaluated through metrics such as job creation, regional development levels, and optimization of social spending. Public participation indicators include the number of volunteers, the scope of project outreach, and the level of public–private partnership engagement.

From a transparency perspective, audit reports, public disclosure mechanisms, and citizen satisfaction surveys play a crucial role. Environmental impact is assessed based on factors such as emissions reduction, energy efficiency, and waste reduction.

Overall, state CSR projects are not limited to generating social benefit; they also function as strategically important governance tools that enhance economic efficiency and strengthen public trust.

— Thank you for the interview.

Source of the news: https://marja.az/136539/dovlet-ksm-i-strateji-funksiyadan-ictimai-etimada-qeder

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