When it comes to а socially responsible business, research shows that there are a lot of different definitions and explanations of the term “corporate social responsibility”. It is neither optimal, nor practical to go that deep in this subject or to analyze all these definitions. You do still need to find an answer to why your business should be socially responsible, though. What is important in this case is not to be an expert in corporate social responsibility, but to understand that without the so-called CSR small, family and even big firms will not be able to fit in today’s modern global economy and will probably not respond adequately to its requirements and modern trends. Today, more than ever before, the most respected and successful businesses do much more than merely making money – they use the power of their business to solve social and environmental problems.
The different social campaigns and charity activities bring different advantages to the business world. The statement that all of them are great factors for faster and more successful growth is indisputable, though. But to show you the point of corporate social responsibility in practice, I’ve listed some of the main and most important benefits it brings.
1. Increased customer loyalty
Customers are more likely to trust and be loyal to socially responsible businesses compared to companies that aren’t. Providing a great product and shopping experience, have their benefits. If you really want your customers to keep coming back, though, you need to let them know that their money is not just filling your pockets, but is rather used for the welfare of the society they are part of.
2. Employee satisfaction
Employees will be proud to work for a reputable company which consistently helps societies improving their quality of life. Employees working in such a company will feel more motivated to work harder for the company’s success. Socially responsible companies will also be able to attract and retain the best talents more easily.
3. CSR boosts the brand image and reputation
By being socially responsible, your firm is gaining support and positive recommendations.
4. Long-term partnerships
Businesses can simultaneously improve their economic, social and environmental performance and find new market opportunities through strategic partnerships with NGOs. The knowledge, expertise and capabilities of NGOs and corporations are distinct and may be complementary; together, NGOs and companies can often accomplish more both for society and for the business.
5. Shareholders are satisfied
What a shareholder cares about regarding the firm he has stocks in, is its good reputation, the solid dividend and people’s opinion. Because, after all, shareholders do not participate in the main working processes of the company!
According to Joel Bakan’s (2004) in his book “The Corporation” – corporations “are now often expected to deliver the good, not just the goods; to pursue values, not just value; and to help make the world a better place”, despite that CSR is perceived to be a modern mechanism for profit-maximization.
So, what do you think about CSR?