Corporate social responsibility (CSR) has emerged as an area of priority for many organizations across the globe. Here is a quick guide to CSR, its benefits, and how companies can increase their CSR.
What Is CSR?
Corporate Social Responsibility (CSR) includes a set of practices a company follows to be socially accountable to the public and its stakeholders. CSR is a a self-regulating business model that attempts at consciously identifying and monitoring the economic, social, and environmental impact of a company.
Philanthropy and volunteer efforts are just some of the core CSR programs that companies readily implement.
Importance of CSR
While the core purpose of CSR is to do something positive for the greater good, CSR can also positively impact a company’s bottom line. Nowadays, consumers are increasingly aware of the companies they shop from and do business with. In fact, 91% of consumers expect companies to be socially and environmentally responsible in business, while 84% shop for responsible products.
By embracing CSR, companies can experience the following benefits:
- Improved Public Image: The public image of a company plays a vital role in attracting and retaining customers. Most customers assess a company’s image and reputation before buying from them. By implementing CSR, companies can improve their public image and reputation.
- Increased Recognition and Awareness: Additionally, CSR can help increase recognition and brand awareness, which is directly associated with more business and revenue.
- Increased Customer Engagement: Customers like to engage with companies that are socially responsible. By sharing CSR efforts on social media, companies can drive customer engagement.
- Improved Employee Satisfaction: Employees love working for organizations that put in efforts to create a better world. Companies that follow CSR practices see better employee engagement and satisfaction.
- Competitive Advantage: Companies that embrace CSR enjoy a significant advantage over their competitors.
How Can Companies Increase Their CSR?
If you’re wondering how you can enhance your corporate social responsibility, We have a few tips to help you get started.
- Align with Your Values and Service: Include CSR in your business mission and values. Companies can take it a step further by using their products and services in a socially and environmentally responsible manner.
- Go Green: Going green is a widespread way of embracing CSR. Reducing your carbon emissions, using sustainable manufacturing practices, and selling eco-friendly products can be good starting points.
- Promote Volunteering: Volunteering is one of the most popular ways to showcase your social responsibility. You can establish a regular volunteering schedule for your team. Some companies even conduct off-site volunteer activities.
- Mobilize Employees through Committee: Create a committee of employees that are passionate about CSR. Mobilize them in different areas to increase the CSR of your organization.
- Educate Employees: Regularly educate your employees on the importance of CSR and why it’s an essential aspect of your company.
While CSR is a moral and social responsibility for all companies to incorporate into their strategy, CSR can also provide business benefits. In this era, where customers are readily choosing socially, and environmentally responsible organizations, adopting CSR practices should be a key area of focus for all companies.