Abbreviated to CSR Corporate Social Responsibility is an umbrella term for when a business seeks to help develop and improve the society in which it operates – while deriving no financial gain from doing so. Such activities include making monetary donations to regional, national, and global charities or devising and implementing environmentally friendly protocols and practices. No question, CSR is becoming ever more commonplace within business. Of course, profit-driven activities remain the primary purpose for companies; yet CSR initiatives have fast become an undeniable secondary purpose for thousands, if not millions, of them across the globe.
Does CSR really make a difference?
Undoubtedly, yes. The positive effects of CSR on society, either regionally or on a wider basis, are unlimited. Or, you might say, they are limited only by the number of CSR practices that businesses commit to and enact. Sure, CSR is rarely mandated, but its benefits are clear to see, especially in terms of business-derived donations to non-profit organisations. At present, roughly 75% of all financial contributions to non-profits come from individual donors; ensuring non-profits generally look to the remaining 25% of contributions from companies. However, if businesses were to contribute more than they currently do, the improved impact on the work of non-profits would be greatly enhanced.
How can CSR programs help nonprofits?
Individuals make up roughly three-fourths of an organization’s total monetary contributions. CSR initiatives can help nonprofits make up that leftover 25% after they’ve looked to individual donors.
Importance of Corporate Social Responsibility
It’s incredibly important that your company operates in a way that demonstrates social responsibility. Although it’s not a legal requirement, it’s seen as good practice for you to take into account social and environmental issues. View more details with regards to casino 400 bonus.
Social responsibility and ethical practices are vital to your success. The 2015 Cone Communications/Ebiquity Global CSR study found that a staggering 91% of global consumers expect businesses to operate responsibly to address social and environmental issues. Furthermore, 84% say they seek out responsible products wherever possible.
As the above statistics show, consumers are increasingly aware of the importance of social responsibility, and actively seek products from businesses that operate ethically. CSR demonstrates that you’re a business that takes an interest in wider social issues, rather than just those that impact your profit margins, which will attract customers who share the same values. Therefore, it makes good business sense to operate sustainably.
Spreading the benefits
In fact, a company itself benefits, too, from getting involved in CSR. So much so, it’s now seen as best practice for businesses to act on social and environmental issues – and doing so ensures the benefits end up spreading across the board.
Yet, this no surprise, really, when you consider the statistics. For instance, research suggests that, across the world, more than nine in 10 consumers expect companies to address social and environmental issues, as well as to pursue their usual goal of profit. Moreover, more than eight in 10 consumers claim they try to buy responsible products whenever they can. So, operating ethically won’t just help a company ‘look good’, it will also attract customers who share these same values – and, it appears, these customers are an ever-increasing majority.
What CSR can do for a business
- Public image. even a small thing, such as team members volunteering for some charity work, can boost the image of a company’s brand and make it appear more favourable.
- Brand recognition. the above example can, itself, quickly become an example of improved brand awareness and positive brand recognition; good news always spreads.
- Savings due to sustainability . don’t doubt it; the likes of reduced packaging can be a boon when it comes to reducing production costs and increasing resource efficiency.
- Competitive advantage . becoming a company recognised for its commitment to social and environmental issues can really help it stand out from its competitors.
- Something to shout about . passing up the opportunity to promote its good deeds is foolhardy for a business; so, creating a positive narrative by posting about them on social media channels and making local media aware of what’s going on is the way forward.
- Employee retainment . just like retaining loyal customers, retaining good employees is important for every business and the more it’s active in CSR and talks about this, the more top candidates will want to work for and stay working for that company and the better they’ll develop in a positive, motivated, productive working environment, where CSR is an inherent part.
- Innovation. businesses are better able to anticipate, identify and keep up with emerging market trends when they engage more and better with loyal customers who want to see the best from the companies they like.
- Investment opportunities want to be invested in? Well, investors are canny and only want to get involved with something that works and is positively looked upon; that means they’re increasingly attracted to businesses whose ethics and practices are socially and environmentally positive, so make your company that attractive business.
CSR is Good for Community
- Help local charities financially (charities that may have been chosen by staff members).
- Sponsor an event in the local community
- Put on a community-based clean-up event.
- Encourage employees to volunteer in schools/ other community environments
- Help employees with tax-free donations to specific charities via ‘payroll giving.
- As a business, it’s also a terrific idea to get staff members involved in decisions about CSR activities – not just because individuals may come up with great ideas for projects and for CSR in general, but also because staff involved in CSR may become better motivated in the workplace and aid their professional and personal development. It could well prove an all-round win-win situation.