Over the years, we at Beaton have conducted a large amount of research into what makes professional service firms innovative in the eyes of clients and employees. Interestingly, in recent times, it appears that being socially responsible is top-of-mind when people think about what makes a firm innovative.

In our 2009 Beaton Benchmarks study, we found that, overall, clients of the architecture and consulting engineering professions were most likely to associate firms (in those professions) with being socially responsible, and clients of law firms were much less likely to do so. This echoed associations of being innovative – again, architecture clients were most likely to associate their firm with innovation, and law clients were least likely.

We have seen that this link between innovation and being socially responsible is a real one, based on clients’ responses when asked to cite specific instances of their firm being particularly innovative. For clients of law firms, the innovative practices cited were wide ranging, but a significant proportion were related to socially responsible business practices, such as work in the climate-change area and pro bono work.

This is what law firm clients had to say about examples of innovative practices:

• ‘Focusing on environmental law and carbon markets, and partnering with an engineering firm to offer a complete service’
• ‘Establishing a climate change group’
• ‘The firm has launched a Clean & Sustainable Technologies Group – good idea!’
• ‘Gave staff a 9.5 day fortnight’
• ‘The firm appears to be innovative in retaining staff’
• ‘Internal staff-mentoring program at all levels’
• ‘Profit sharing with their employees. Goes against the “take, take, take” mentality some firms have’
• ‘The firm is innovative where they have been taking a lead role in understanding the potential impact of both the credit crunch and the introduction of a carbon trading policy’
• ‘Their pro bono work, allotting a minimum of 35 hours per week, which sets a great example for all other firms to emulate’
• ‘The firm has been innovative in its response to the needs of its pro bono clients’

This attitude towards social responsibility is echoed amongst employees of professional service firms. In 2009, Beaton released a research study in collaboration with St James Ethics Centre on what Australian business professionals really think about ethics.

The study shows that Australian workers believe that the ethical obligations of businesses are broad reaching and encompass duty to the environment and to the community. In fact, over 80% of individuals believe that ethical business behaviour includes being environmentally responsible, and 70% believe it includes acting proactively in a way that benefits the communities in which the firm operates. While for law firm employees these figures are lower – 71% and 57%, respectively – they still represent over half of all individuals working in law firms.

So, not only is being socially responsible an ethical obligation of businesses – in the eyes of employees and clients alike – it is also critical to being perceived as innovative.

Is this because people think that businesses aren’t socially responsible but should be – so those that do get social responsibility right are perceived as innovative?

Or is it just because socially responsible initiatives suggest a level of success; that is, if the business has time, energy and money to put into such initiatives, they must be doing their core business profitably, which in turn implies a level of innovation?

Maia Gould leads the pro bono agenda at Beaton, a world-leading B2B services research and consulting firm. In 2010, the pro bono element of the firm’s well known Annual Business and Professions Study will focus on sustainability issues in the business community.

Where do you stand?

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