If you’re a company or a business owner, the days of focusing only on money-making are long gone.
Nowadays, more and more businesses are focusing on Corporate Social Responsibility. Corporate Social Responsibility has now become a buzzword, as businesses that work for the welfare of people, the environment, and society at large have become increasingly important in the eyes of the consumers.
CSR is a concept that can benefit both your business and society. Many businesses are now shifting their focus on social responsibility, whether it’s water conservation, child education, environmental conservation, or attempting to help the underprivileged. Including CSR in your business model can make your business achieve new heights and great success.
So what exactly is CSR and why should your business be embracing it? We have it all covered. Here are the Top 10 Reasons Companies Should Embrace Corporate Social Responsibility.
What is Corporate Social Responsibility (CSR)?
Corporate Social Responsibility refers to the sense of responsibility of a business to take steps to make sure that there is a positive social and environmental impact associated with the business’s operations. Also called corporate citizenship, CSR is not to be confused with philanthropy. When properly implemented, it becomes integrated and grained in the values of a company, and positively affects the overall working of the company in amazing ways.
The following video will give you a detailed look at what CSR IS. Have a look!
Top 10 Reasons Companies Should Embrace Corporate Social Responsibility
Social responsibility and ethical practices are critical to the success of a business. Let us look at the key benefits of corporate social responsibility for your business:
1. Helps in Boosting Public Image and Reputation
Corporate Social Responsibility can help your business improve your reputation and public image not only among your employees but also your consumers, media, and competitors. Now, this is important because your direct consumers and other members of society judge your reputation and public image greatly before buying your product or spending money on your services.
And when a business takes the initiative of educating poor children, conserving water, using recyclable goods, adopting a village, and so on, the consumers develop a positive feeling for the company.
2. Helps in Increasing Sales
As stated above, businesses supporting and believing in a cause and working towards it are perceived positively by the customers. Generation Z and Millennials connect with companies having a positive impact on society and the environment.
If people perceive your business positively, they are more likely to buy from you. And when that happens, it translates to greater sales and revenue. Thus, you can generate profit as well as do your bit for the environment or society.
3. Helps in Overall Cost Reduction
Profit-making has always been the primary goal of businesses, but even when a company spends money on CSR, it can help reduce costs without sacrificing profits.
For example, if a company invests in solar panels as a part of their Corporate Social Responsibility initiative to promote the use of sustainable energy, the equipment will cost them initially. But, it can help the company save money in the long term by reducing electricity costs. These reduced costs can help a company make a very good profit and do well for society and the environment.
A brief look at Cochin Airport in India will help you understand this better. It operates completely on solar power which is inspiring others to go solar and also reduce their overall electricity costs.
4. Better Employee Engagement
There is also a range of benefits for your employees when you embrace CSR. People love to work for companies that are working for the welfare and the betterment of the society or environment. Also, this makes your organization a more productive and positive place to work.
When employees engage in socially responsible activities, it encourages their personal and professional growth and they tend to perform better. Corporate Social Responsibility also provides your employees with a feeling of unparalleled happiness. Corporate Social Responsibility activities also strengthen the habit of working together as a single unit to help others.
When personally fulfilled, people are less vulnerable to fatigue and stress. They’re also more likely to stay with the company.
5. It helps to attract more employees and young talents
People are drawn to work for companies that have a good public image and reputation. Since, CSR helps you to achieve that, it ultimately helps you to attract more and the best employees and keep them, making the business stronger.
Also, talented professionals, consider whether a company’s core values match up with their own when they apply for jobs. Since younger generations and talented professionals are inclined towards companies who undertake CSR activities, it can also help a company to attract talent.
6. Encourages Customer Loyalty
To attract customers and to keep their loyalty, corporations need to pay attention to what the customers care about and how they are operating their business. If a customer feels like they are living out their values by buying from a specific business, they are more likely to stay loyal to that brand.
They’ll feel a sense of pride in consuming your product your service and are more likely to talk about it and recommend it. But this requires favorable actions from the side of the business and CSR can help you do exactly that.
When you do well for society, people are bound to notice. When they notice, they are inclined towards your business and are more likely to stay loyal to you. This is the best marketing a business can get.
7. It gives companies an edge over their competitors
Simply speaking when a company undertakes CSR activities for the betterment of society and the environment, they have a competitive edge over companies that do not. They might be offering the same products and services and even at the same prices as their competitors, but the fact that they are making social and environmental welfare a priority attracts more consumers.
8. It Promotes Sustainability
When a company undertakes CSR activities, it forces them to be more creative and innovative in a way that works well both for the company and society. Nurturing innovation and creativity forces a company to stay young and adjust itself according to what its customers and other members of society want.
9. Attracts Investors and Collaborations
Investors care about a company’s brand image, reputation, customer loyalty, and market position. Since CSR can help a company strengthen itself in all these spheres, it can also attract investors. Incorporating Corporate Social Responsibility is an effective way to build mutually beneficial relationships with socially-minded investors while contributing to the greater good.
Because everyone, even Investors prefers to support companies that are working towards making the world a better place.
10. Making a World a Better Place
Big Businesses and companies can change our world in amazing ways. With all their capital and influence combined, they can undertake Corporate Social Responsibility on a huge scale to work for the betterment of society. If all the companies do their bit in working for society, it can impact the world positively in a great way. Many companies are now Addressing issues like Child education, World Hunger, Climate Change, and are doing their part in making this world a better place.