Whilst it’s important for a company to operate for a profit, it’s equally important to operate in an ethical and sustainable way and this is becoming more important as our younger generations are more educated on the negative impact we make on our environment.
This is where Corporate Social Responsibility comes into play. Corporate Social Responsibility, CSR for short is when a company makes an effort to improve the society and contribute towards its sustainable development. It deals with environmental and social impacts a business has in the society it operates in.
Perhaps the question would be, ‘is CSR really important for businesses or companies?’ To answer this question, this article will explore the importance of CSR and its benefits.
Importance of CSR
Although not a legal requirement, operating in an ethical way is extremely important for all companies. Not only does it create a good image, but it is also a way to demonstrate humanity. This is done by taking part in the sustainable development of the society, environment and stakeholders.
Companies are realising that by implementing CSR it is only for the benefit of the communities or societies they choose to support. CSR investment is a strategy for your business or companies success as well. CSR gives companies an opportunity to create brand awareness, it also gives them a chance to attract customers who share the same sentiments as them. Statistics show that customers, especially the younger ones, are aware of the importance and need for companies to take up social responsibility and is an attractive tool for these people to select companies that share their vision and ethos.
To add, it also helps in building trust with stakeholders such as employees, shareholders and customers. This way companies thrive together with their customers and communities.
Benefits of Corporate Social Responsibility
There are a number of benefits that CSR has. These benefits speak volumes about why companies should adopt CSR. Here are some of the benefits of CSR;
1. Good Public Image
A good public image is of paramount importance to any business. Customers assess the image of a brand before associating themselves with it. This assessment can be as simple as looking at charities the companies is involved with or company staff volunteering in community activities. What better way to create a good image than to incorporate CSR?
2. Increased Recognition
The more a company commits to ethical practices the more press they get around the work they are involved with. It is a good way for companies to get recognition and reach their customers about something other than selling the product or service. Many companies that invest in CSR have seen increased recognition and brand awareness.
3. Competitive Edge
Companies that adopt CSR are one step ahead of those that do not. The good image they create for themselves plus recognition means attracting more customers.
5. Customer Engagement
CSR influences customers to follow the brand and engage with its operations. If companies have social media pages, customers follow them and actively engage with the posts.
6. A Positive and Productive Workplace
Being actively involved in society issues promotes a positive and professional work environment. It also encourages professional and personal growth because employees get to interact with each other outside their work responsibilities. They find themselves doing something for their society and it gives them a greater sense of accomplishment.
7. Employee Engagement
Adopting CSR helps to improve employee engagement. It is proven that employees enjoy working for companies that have a good public image. CSR also improves the likelihood of retaining top candidates.
In conclusion CSR is of equal if not more benefit to a company that just a donation or support to a project or community. However it is important for companies to find the project, charity or CSR strategy that is aligned to their core values and ethos as this will help engage their stakeholders. For further reading on this subject check out the giving machines corporate guide and this blog from the hub
Action Change is a UK charity that is registered and able to work with corporates across the United Kingdom, United States, Australia and South Africa. With over 70 projects around the world Action Change can offer a corporate unique partnership that helps with CSR but also tackles the United Nations SDG’s and can open as many doors for the corporate as it does for their projects. We are at a critical time in life and the future will only be bright if we partner and work together, Join Us today.