Corporate social responsibility (CSR) has evolved from its origin of a suggestion that corporations earmark a portion of their profits to put toward philanthropic initiatives, to becoming a basic component of the way that many companies operate their business. Now, it is a broad term used to describe a company’s effort to improve society in some way. These efforts can range from donating money to nonprofits to implementing environmentally-friendly policies in the workplace, according to Double the Donation.
Advantages of CSR:
According to Born2Invest, some of the advantages of CSR include:
1. It builds public trust
88% of consumers said they were more likely to spend money for a company that supports and engages in activities to improve society. By helping society, by either through donating money or volunteering, the company gains trust from its consumers. In the long-term, the company will become more and more popular. And one day, it may get news coverage from press organizations, which is a hugh push on the company’s public relations side. CSR builds a good reputation for the company.
2. It enhances positive relationships
As the company builds public trust, it also builds a sense of community among its consumers. Even though communities aren’t directly connected to the company by its CSR, they may end up being proud of it. Thus, CSR can lead to a much healthier company-consumer relationship. Meanwhile, internally, it also attracts and retains the employees. When corporations exhibit philanthropic behaviors or are doing good for society, they are more likely to provide employees with a positive workplace environment. As a result, they feel engaged and productive when they walk into work each day. Many people, especially Millennials, prefer to work for a company that has a high level of CSR. Hence, having a high CSR not only attracts consumers externally, but also make its employers prouder internally.
This is one of the most important long-term benefits for a business. CSR helps companies become more sustainable. One obvious way to become socially responsible is to reduce carbon emissions and start using renewable energy. Companies can also do it through encouraging its workers to turn off devices when they are not using them and turn off the lights and air conditioners after work. By implementing this, the company can save a large amount of money on its utility bills as well as getting recognized as being a socially responsible company.
4. It increases profits
Many people may think they have to make sacrifices in order to increase their company’s CSR. In fact, there are many ways to maximize profits while increasing CSR. As companies work to improve their CSR, there are many additional benefits that come with that. According to top CSR statistics, 55% of consumers are willing to pay more for products from socially responsible companies. As a result, profits will increase because higher CSR will attract more customers.
5. Encourage professional and personal growth
When companies have a culture of corporate social responsibility, they can easily promote volunteerism to their employees and encourage them to donate to nonprofits. Employees are more likely to become individually, philanthropically minded if their company encourages that behavior. Meanwhile, employees know that their employer is committed to bettering their local and global communities. They will then feel more inclined to be productive and creative on their own. Consequently, employees are able to professionally and personally develop as a result of corporate social responsibility.
In reality, the benefits of CSR are much more than what is described in this article. It not only does good for the company itself, but also benefits the community and society at large. Even though corporate social responsibility is not a mandated practice in the United States, counting all the benefits that will come with it, companies should take it as a necessity and start working today to become socially responsible.