Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do, or because people are forcing us to do it, but because it is good for our business. ~Niall Fitzerald.
In recent years, businesses and companies worldwide have found that corporate responsibility or corporate social responsibility has become a buzzword.
To many, it may seem like a trend to better cater to the demands of an ever-discerning market of consumers. However, it has proven to be more than just a marketable trend, and it is not likely to go away. So, what is it exactly? Back in the day, businesses and companies resisted the movement simply because they dismissed corporate responsibility as a call to save the world. From an outsider’s perspective, it may seem that way. Still, corporate social responsibility (CSR for brevity) or corporate conscience is an excellent way for companies to benefit society while also benefiting themselves.
In a nutshell, it is a way for companies to give back to the world of consumers that patronize them. Essentially, it is a form of corporate self-regulation seamlessly integrated into a business model. Many companies may not have CSR programs, but they address this by being a CSR partner in the Philippines or elsewhere. Businesses that contribute to social or environmental development goals embrace corporate responsibility.
A few things a company can do to be more socially responsible is to pay close attention to how their business practices impact marginalized groups, the environment, and society. Companies can either incentivize volunteer work for employees, revisit their ethical guidelines, or even set up charitable funds to go above and beyond but, more importantly, play a part in CSR. An organization’s CSR efforts should send a message to the community that it recognizes it is placed in a unique position to help society. Accordingly, they should act upon that acknowledgment.
With CSR, companies are not only helping their communities, but they also stand to benefit from a few benefits. If you are a business looking to incorporate CSR practices, below is a list of the most compelling reasons you should look into them.
From there, you can think about how your company can play an active role in the community—beyond its traditional business model.
Reasons to initiate CSR programs in your company
1. Enhances customer engagement
One of the primary reasons why businesses and companies practice CSR is because they wish to improve their reputation. Half of the point of CSR for companies is for businesses to benefit and refine how communities and their potential consumers see them. That said, you want people to know you are practicing it. Moreover, CSR provides infinite ways to engage with your customers in new and different ways.
Also, you will find it easier to start conversations with your audiences and customers regarding it, as the message is always about something good.
2. Improves employee engagement
Like customer engagement, it is imperative and beneficial for your employees to know what is happening within the organization. How a company treats its community suggests good things to its employees about how it perceives and respects them. Moreover, employees who feel valued and respected by their employer are more likely to feel more comfortable bringing their most authentic selves to work, which can lead to increased engagement.
You are missing out if you do not inform your employees about your CSR practices. Employees tend to feel a sense of pride and happiness toward a company if they feel like they are contributing to something good.
3. Encourages customer loyalty
Today, consumers tend to favor brands they perceive as organizations taking an active role in bettering the community or society. People are giving to charitable organizations in high numbers, and millennials are especially active. To attract more customers and keep their loyalty, you must pay close attention to what they care about. Customers will likely patronize and support a brand they feel cares about the same values. As a result, they feel a sense of pride when buying from these businesses and are very likely to recommend them to others. Indeed, loyal customers are a company’s best bet in marketing its brand.
4. Differentiates the brand
Back in the day, brand differentiation was the primary reason companies would participate in CSR. However, now that CSR has become rather prevalent, it can be a little challenging to utilize it for brand differentiation. If you wish for your brand to stand out, utilizing CSR can be difficult. This is not to say that there are no benefits, but your company needs to be a lot more creative in this approach for you to get noticed.
However, it is worth noting that companies that practice CSR have a competitive edge over other companies that do not. Today, customers are more discerning and care about the business’s role in social issues. These customers will be loyal to corporations they believe align with their values. You and your competitor may offer the same products and services, but you have a competitive edge over them if you and your customer base share the same values. If you prioritize corporate responsibility, you appeal to your customers—and drawing that distinction is paramount when marketing your brand.
5. Gears toward the long-term plans
CSR is an excellent way for a company to look into the future of its business. It is an endeavor to look into the company’s interests and sustainability. Good CSR programs and initiatives help organizations step back and forget about the next quarter for the moment and help them envision and focus on what their company would look like ten years from now.
Business corporations need to be more innovative and creative if they wish to make corporate responsibility a focus. As a company with CSR programs and initiatives, you cannot just go on business as usual. You need to cultivate an environment of innovation and creativity. Both will force you to stay relevant and cater to what your customers want from you accordingly. In these modern times and for the foreseeable future, your customers want social responsibility. As a company, you must develop the ability to adapt to these, which are imperative for longevity and sustainability.
6. Reduces and cuts costs
Business, as usual, means making money is the primary goal. Therefore, some companies have resisted CSR because they mistakenly thought implementing it would mean sacrificing profits. However, this could not be further from the truth. Good CSR practices and initiatives would even help companies reduce costs. More importantly, when reduced costs and higher-priced products are combined, companies can stand to benefit from making an excellent profit—all by being socially responsible.
7. Opens up new opportunities and markets
There is a myriad of markets that have not been tapped into all because traditional business thinking does not see them as profitable enough. However, with social activism in mind, corporations can create
opportunities and open new doors to neglected areas and causes. As companies shift their focus on considering social impact while making a profit, corporations can find that happy balance and set themselves apart from the crowd.
As a result, the business will gain appreciative consumers who will be happy that they are thinking about where they can help and not only where they can have more profit.
8. Attracts more employees
Today’s generation cares about social change and justice; these individuals will soon be your employees. In some corporations, they even make up the majority of the workforce. That said, people tend to prefer working in companies that prioritize corporate responsibility as these organizations mirror and share the same values. By embracing corporate social responsibility, you attract more and better employees and keep them, strengthening your business.
9. Makes the world a better place
Businesses should not focus solely on how to sustain themselves as money-making organization for a few years. As key players in society, businesses, big corporations, in particular, can change society in significant ways. Therefore, companies should realize and acknowledge that they wield a lot of influence. Consequently, they can raise awareness of issues and play a pivotal role in progress. Corporations can take charge in myriad ways; all they need to do is find the right way to go about it.
By taking responsibility for their impact, these same corporations can help the world become a healthier and happier place for everyone.
Bottom-line
Indeed, CSR benefits your company and the rest of society. You can do the world a lot of good with CSR programs and initiatives while possibly cutting costs while improving your company’s overall reputation.
