Why Should Businesses Be Socially Responsible?
Why should businesses be socially responsible?
Ask what socially responsible business means and you’ll find dozens of definitions of corporate social responsibility, in your own head and all over the internet. But picking apart every definition won’t help much if you’re after the answer to a simple and very important question: “Why should businesses be socially responsible?” What matters more is this: without corporate social responsibility (CSR), small, midsize and even large companies would struggle to keep up with the needs and trends of today’s economy. More than ever, the most respected and successful businesses don’t exist just to make money. They use their influence to help solve social and environmental problems.
All of this points to one conclusion: corporate social responsibility is a modern trend that grew out of the business world. It looks to the future, because until recently an obligation like this simply wasn’t on any company’s list of primary or secondary tasks. And more and more companies now run active CSR programs to build a personal, direct connection with people and their communities. If you think CSR is mostly charity (or even a waste of time), think again. CSR is an established, proven way to grow revenue. It lets you do well for your company by doing good for society. It makes your company better known, and it is an endless source of opportunity, innovation and, just as important, competitive strength.
Different social campaigns and charitable activities bring a company different benefits. All of them help it grow faster and more successfully. But to show clearly what corporate social responsibility is about and what you can get out of it, I’ll focus on a few of its most important and tangible advantages.
1. Customer loyalty
Consumers are more likely to trust socially responsible companies and stay loyal to them. Offer a great product and a great customer experience, and your company will thrive. But if you really want customers to come back again and again, you have to convince them that the money they spend with you isn’t only about profit. It also does some good for the society they belong to.
2. Happy employees
Your employees will be proud to work for a company that supports the community they live in. That pride will motivate them to work harder for the company’s success. It will also make it easier for you to attract new talent.
3. A better brand image and reputation
Social initiatives make people want to support you and get them talking about you and your business in a positive way.
4. Long-term partnerships
By partnering strategically with nonprofit organizations, a business can prove its economic, social and environmental responsibility and expand its market opportunities at the same time. When both sides bring their knowledge, experience and resources, the result is often a bigger payoff for society and for the business alike.
5. Happy shareholders
Shareholders care about a company’s good name, a solid dividend and public opinion. That’s simply because they aren’t involved in the company’s day-to-day work and don’t take part in how it runs.
In his book “The Corporation” (2004), Joel Bakan writes that companies today are expected “to deliver the good, not just the goods; to pursue values, not just value; and to help make the world a better place.” At the same time, CSR is also seen as a modern way to increase profits.
What do you think about CSR?
Petar Dyaksov
Entrepreneur, investor and managing partner at SEOMAX, with more than 15 years of experience in e-commerce and digital marketing. He builds businesses in technology and e-commerce, invests in companies and supports entrepreneurs. Speaker, trainer and mentor at dozens of conferences, seminars and entrepreneurship programmes.
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