The United Nations Industrial Development Organization refers to CSR or Corporate Social Responsibility as a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. It is used as a means to achieve the “Triple Bottom Line” approach, wherein a company addresses social, economic and environmental imperatives while simultaneously meeting and surpassing the expectations of shareholders within the company. CSR is one of the many ways in which large global corporations can meet and uphold the social and environmental standards maintained by society, while also being a valuable strategic management concept that can be adapted in even SMEs.
It is important to note that while CSR has immeasurable benefits to consumers, it also helps support the employees within the firm by assisting in creating a safe and nurturing environment, aimed at boosting the morale of the workplace and helping every employee fulfil their maximum potential. Below we will examine some of the benefits of CSR to society and also to the firms.
Increased Brand Image – Having the name of the company associated with a positive impact will not only help boost its reputation and public image but also help in establishing brand recognition, setting it apart from its competitors.
Increased Sales and Customer Retention – According to a study conducted by the consultancy firm FleishmanHillard Fishburn, 59% of consumers said they expect companies to take a stand on climate and environmental issues. By showcasing care for the environment and society, companies highlight their willingness to help the everyday consumer, which is a feeling consumers replicate. Moreover, customer engagement also skyrockets through posts on social media etc.
Attracting better employees – A study by CONE Communication’s (2016) highlighted that 64% of this generation won’t work at a company that doesn’t exhibit a strong commitment to social responsibility. These numbers are only going to go higher, as the workforce is projected to be around 50% of the workforce, and so in order to attract competent and dedicated employees, companies have to maintain a high standard of social responsibility.
Reducing Costs and Improving Processes – CSR programmes lead to companies evaluating their own procedures and processes and may even help a company reach to a more profitable and efficient procedure than the current one.
More support and volunteers for charities – CSR prioritizing companies often encourage employees to take days off in order to help in charitable organizations, as well as running their own functions aimed at particular charities.
Raising Awareness – Through various promotions and fundraisers, CSR programmes help educate not only the masses but also the company’s own employees on various issues surrounding the world. Moreover, due to the large public outreach of private firms, a larger audience can be reached than with only government and fund limited charities.
Establishing a Precedent – Through setting up programmes and doing their role in order to aid society, large companies help establish a model for individuals and smaller companies to follow suit.
Creating long-lasting Partnerships and Relationships – A common bi-product of CSR is a strong and beneficial partnership that develops between the charities that the company. Through this partnership, in the form of projects and programs, companies can help financially support charities in their missions which would have normally been limited by funds.
Hopefully, through reading this article some readers have understood the importance of dedication and commitment to society and how in times like these, with the BLM Movement and the Coronavirus Pandemic will help demonstrate their willingness to help in any which way possible.
It's not how much we give but how much love we put into giving. – Mother Teresa