Corporate Social Responsibility
Definition of Corporate Social Responsibility
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.
Different types of CSR
- Environmental CSR: focuses on eco-issues such as climate change.
- Community based CSR: businesses work with other organizations to improve the quality of life of the people in the local community.
- HR based CSR: projects that improve the wellbeing of the staff.
- Philanthropy: businesses donate money to a good cause, usually through a charity partner.
Advantages of Corporate Social Responsibility
Five reasons why should you get involved in CSR
In today’s digital, fast speed world, each business, small or big, needs to have a CSR program in place. If CSR is not yet part of your daily business practice, you must act fast. Or else you’ll lose the trust of the people who are important to your business. Believe it or not but the expectations of your staff, customers and the wider community have changed. You are no longer in control. They are.
Increased customer loyalty
In a 2016 Neilson survey, 56% of participants said “a brand being known for its social value” was a top purchasing driver. And 53% of participants said “a brand with community commitment” was a leading purchasing driver.
Customers are more likely to be loyal to your brand if your corporate values align with their personal ones. What’s more, millennials — the largest population, over baby boomers, by 2019 — are driving the market these days. According to Forbes contributor Sarah Landrum, millennials prefer to do business with “corporations and brands with pro-social messages, sustainable manufacturing methods, and ethical business standards.” CSR programs work to showcase your corporate values and demonstrate that team work, community involvement, and engagement are at the top of your core values.
Improved public image
In today’s digital era, companies that demonstrate corporate social responsibility are gaining exposure — and praise — for their involvements. Your brand’s reputation can only benefit from good deeds in your community. Think about it: Consumers feel good when they buy products and services from companies that are helping their community.
Don’t miss the opportunity to publicize your CSR initiatives and spread the word about your community involvement. Tweet, post, and share your social programs. Letting the public know about your good deeds will only work to increase your brand’s public image.
Increased employee satisfaction
The way a company treats its community says a lot about how a company treats its employees. People that feel respected and supported in their jobs are often more productive and satisfied at work. Giving your employees opportunities to volunteer, especially during working hours, creates a sense of community within your organization, as well as a connection to the surrounding community. Employees will gain motivation and pride in their work through these personal-development opportunities.
Employees that are actively involved in the community are also acting as brand ambassadors. The more engaged and invested they are in your organization, and the greater community, the more productive they will be. In fact, companies with highly engaged employees saw 21% better business profitability. What could be better than happy employees promoting your brand while helping their neighbors?
Want your employees to start thinking outside of the box? Want to increase innovation in your company? CSR initiatives encourage your employees to try new things and get re-energized about their jobs.
Through this social involvement, employees will feel empowered to start contributing to the bigger picture. They might come up with new ideas about products or internal processes or innovate new problem-solving solutions. When you demonstrate your company’s values and passions through community giving, employees will feel encouraged (and supported) to develop new and better ways to do their jobs.