Why doing good for others is good for business
While some companies have found it relatively seamless to embrace and implement Corporate Social Responsibility (CSR) initiatives, there are still many business owners and executives who can’t quite see how it will work for them.
Like many big decisions, sometimes the fear of not doing it well stops you from doing it at all. If it’s not a ‘no-brainer’, it can easily be put on the back burner or worse, in the too-hard basket.
It might be that they’re looking at examples of effective CSR initiatives that don’t align well with their company or industry or perhaps none of the options stands out as the best fit, making it difficult to decide on the right direction.
In some cases, there are concerns about how a CSR program will be received by their staff, while others are mainly concerned with the amount of time, money, and effort they think it will take to implement meaningful initiatives.
Whatever roadblock you might be facing, have no doubt that doing good for others is good for business and that you can make CSR work for you.
Positivity breeds positivity
Embedding CSR-based thinking and activity throughout your organisation can have an incredibly positive impact on your stakeholders, particularly your workforce, and your bottom line.
Enhancing employee loyalty and attracting top-tier personnel to your business are both positives.
Engaging and motivating your staff is definitely a positive for their mental health and job satisfaction, too.
CSR activities focused on sustainability issues can lower costs and improve efficiencies. Those are significant positives.
CSR that promotes greater respect for your company and increases brand recognition can result in higher sales. So, that’s as positive as it gets in the world of business.
If your company is listed, all the above is more likely than not to increase its share price, making executives’ stock and stock options more profitable and shareholders happier.
That’s quite a bit of good stuff.
Nothing’s more valuable than your reputation
Everyone understands the importance of maintaining a positive reputation. Businesses are also acutely aware of the potential impact of negative online reviews, so work harder than ever to nurture their brand reputation.
As always, the foundation of a good reputation is consistently delivering high-quality products and services at a good value. More than ever, the quality of customer service and after-sales support has become a crucial factor – one that can make or break a business.
But CSR is the real icing on the cake, a true differentiator that can significantly boost brand reputation. If you can clearly demonstrate that your business cares about its customers, the broader community, and particularly the environment, you garner an enormous amount of goodwill.
As a result, companies with good CSR policies tend to get more (and more positive) media coverage.
On top of that, potential investors use a company’s social responsibility as part of the criteria for deciding whether to invest in the company or not.
Not only are people more likely to buy from you, they’ll also pay more
Consumers are socially conscious, and this awareness directly influences their purchasing decisions. They’re attracted to companies that are committed to corporate social responsibility, particularly where the CSR initiatives specifically align with their own core values and preferences.
Research by global environmental technology company GreenPrint found that nearly 80% of consumers are more likely to purchase a product labelled as environmentally friendly, with 77% of those surveyed saying they are concerned about the environmental impact of products they buy.
Meanwhile, an IBM study found that, on average, 70% of purpose-driven shoppers are willing to pay a premium of at least 35% more for sustainable purchases, such as recycled or eco-friendly goods.
That study reinforced data suggesting that high-performing CSR companies attract more loyal customers who are less price-elastic. Even if implementing CSR initiatives cost a bit, being able to then charge a premium can increase profit margins and fund opportunities to expand and invest in product innovation.
Reducing costs and increasing profits is good, right?
Even if you were to park CSR for a moment, would you not look for any way to reduce your costs and increase your profits?
Would you not identify things like operational efficiencies, more sustainable practices, and staff retention as ways to spend less while doing more?
So, regardless of all other positives, would you agree that if you found any way to reduce costs and increase profits, you’d commit to it?
Now, are you still thinking twice about CSR?
It’s good for business and it’s good for society.
Let us help guide you to create a CSR Program that has a tangible impact. Book an initial consultation and discover how our CSR Audit can fuel business growth with a foolproof plan to implement, track, and report the difference you are making.
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