In the article “How can you use CSR to improve brand image?”, I have talked about how more companies are involved in Corporate Social Responsibility (CSR) programmes for consumers to get a better perception of them. With 64% of CEOs increasing their investment in CSR in 2016, there must be a lot of benefits in these initiatives. Let’s take a look at some advantages CSR can bring to the company.
Helping the community
Getting involved in CSR initiatives allows companies to be socially responsible by conducting their business ethically, and think about the social and environmental impacts when they conduct their business. Companies that engage in CSR activities such as giving donations to charities and sending their employees to volunteer at non-profit organisations, know the problems faced by the community and commit to giving back to them. Ultimately, if a company is committed to CSR initiatives, they will have a positive impact to the community or even around the world.
Encourages employee development
In a survey done by Deloitte on volunteerism in 2017, 89% of employees believe that companies that sponsors volunteer activities offer a better working environment than those that don’t. By giving employees a chance to volunteer in activities, it not only allows them to give back to the community, but it gives them the opportunity to pick up new skills. Companies such as Deloitte and SalesForce give their employees time off from work to engage in volunteerism. Employees can get paid leave during the time they engage in volunteer activities. It is no secret that employees like to work at companies that have a good public image that takes care of their employees’ wellbeing. By having CSR initiatives such as employee volunteering would retain important, hardworking employees making them happyImprove the relationship between clients
CSR initiatives is about being ethical while doing business.With a strong CSR model in place, clients will feel safe by investing in the company. In 2015, Nielsen global online survey showed that 66% of respondents were willing to pay more for a product or service of a company that is committed to a positive social or environmental impact. Investors of the company would also be more confident in investing in the company because the company not only cares about profits, but they are also interested in helping the community and making a difference to the lives of others besides their employees and clients. As the number of conscious consumers is increasing, it is important for a company to engage in CSR activities to improve their relationship with these clients, or risk losing them to their competitors that are socially responsible.
Build positive image
In the article, “How can you use CSR to improve brand image?” I talked about the ways CSR can improve the brand image of the company. The easiest way for customers to judge if the company that they want to work with is ethical or not is through their CSR campaigns. As I have said earlier, the more committed a company is to having a positive social or environmental impact, the higher the chances of consumers purchasing their products and services. Companies such as Mediacorp and Microsoft have received a lot of recognition not only because of the products and services they provide, but their ability to give back to society.
Building a CSR model for a company would not only benefit them by having better relationships with their consumers and employees, it would also give them the opportunity to relook at their business activities, and even save money through various ways. For example, in 2014, Fortune 100 companies saved $1.1 billion using renewable energy. It has been a targeted goal for many fortune 500 companies in recent years to use renewable energy, as it not only improves the public image of the company, but save the company on spending resources that are unnecessary for the company.
Companies can no longer ignore their social responsibility. Consumers are more aware of business activities of companies. By incorporating CSR in the company’s business model, it would have a positive impact on the community, the environment, the employees and the business.