CORPORATE SOCIAL RESPONSIBILITY AND YOUR COMPANY: BENEFITS AND IMPORTANCE
Aside from offering products and services to customers, many businesses nowadays engage themselves into various efforts that aim to contribute to the nation’s improvement. This is what we call Corporate Social Responsibility (CSR), an act that demonstrates the company’s interest to social issues without direct impact on their profits.1
In a conventional manner, companies that venture on socially responsible activities choose efforts that are in line with their own set of corporate guidelines, while some consider activities that are close to the hearts of the top executive. Google, for example, has Google Giving that serves as the company’s foundation. Since Google is a company known for its technological innovations, Google Giving is focused on various projects that are related to technology such as supporting social entrepreneurs who are using technology to solve the world’s toughest problems among others2. The Walt Disney Company, on the other hand, are committed to “being a good corporate citizen, from reducing our environmental impact and ensuring respectful workplaces to promoting the well-being of kids and families.” 2
Why incorporate CSR in your business?
CSR is part of an organization’s public relations, as this helps a company build good reputation and image. Here are some reasons why CSR is essential to your business:
- CSR can help you win the trust of your target market. According to the study conducted by the Reputation Institute, 42% of how people feel about an organization is based on the company’s CSR. Many people nowadays are looking for organizations that are not only focused on growing their success but also in helping those who are in need. Further, CSR efforts and activities usually work on encouraging people to be the best citizens that they can be, therefore helping create positive impact in the community that they are part of. This and more influence people that their purchase and patronage to the company’s product and services also serve as contribution to the society’s improvement. The effect? High sales!
2. CSR helps boost employee engagement. A company that is socially responsible does not only attract customers but loyal and responsible employees as well. Employees look for companies that have good public image, which made them proud and happy to be part of such organization. According to a study, nearly 60% of employees who are proud of their company’s social responsibility are engaged at their jobs. This means that CSR helps retain good and productive employees.
3. CSR helps differentiate your brand to others. CSR efforts can bring your brand an identity that sets it apart from others. For example, since Company A promotes saving water, it will produce products that have less water usage. From this, you are trying to communicate to your market that your products are a product of innovation that aims to improve lives and the society as well.
Indeed, corporate social responsibility is a win-win situation for the company and the society as well. However, remember that launching campaigns that are under CSR should be planned properly in order to ensure success. Further, every company should keep in mind that an advocacy has to start from within, and should go hand in hand with transparency and honesty. Practice what you preach.