As a business owner, your roles and responsibilities may seem unending. And while most owners tend to be more focused on making a profit, businesses face increasing pressure to ramp up their efforts on being socially responsible.
Whether you’re fighting for gender equality, protecting the environment, or supporting charities that help people living in poverty, corporate social responsibility (CSR) is more than just a buzz phrase—it’s a societal demand.
But what exactly is it, and how does it benefit your business growth? This article gives you the answers.
Understanding CSR
CSR refers to a self-regulating business model that allows a company to be socially accountable. It means being conscious and implementing initiatives to positively impact all aspects of society, including environmental, economic, and social.
For instance, Dan’s Plumbing, a trusted company in Australia, practices CSR by supporting The Smith Family, a national children’s education charity. The company raises funds to help kids struggling with poverty and send them to school. If you’re interested, you can go to this link.
In short, engaging in CSR means that a company operates in ways that enhance or contribute to the environment and society.
How CSR Helps Your Business
- Consumers Pay For It
As consumers become increasingly conscious of their social and environmental impact, they expect businesses to do the same. A survey in 2019 revealed that nearly 50% of consumers share that they’re paying attention to a business’s social actions. In addition, about 70% of customers want to know how brands address environmental and social issues.
This growing interest in social responsibility causes consumers to move together to support businesses that positively impact society and the environment. If you implement CSR initiatives such as making greener products or volunteering in your community, you’ll garner their support even if it comes with a higher cost.
Statistics show that about 50% of customers will pay more for services or products from a socially responsible business.
So, by supporting social causes and making your business a purpose-driven company for positive change, you can connect with consumers and influence them to change their buying habits to become lifelong consumers.
- Employees Want It
Aside from your customers, the people working for your company also want their organization to be socially responsible. Businesses can improve team member engagement by showing genuine social awareness and implementing CSR initiatives. Plus, you can also attract young applicants who are eager to make a difference instead of the mundane cycle of doing tasks every day to collect paychecks every month.
A business with a solid social responsibility initiative can boost employee engagement and productivity by up to 7% and 13%, respectively. In addition, almost 70% of employees want to work for a company with a strong social purpose. This helps enhance employee loyalty, motivation, and overall company culture, ultimately benefiting your business’s bottom line and growth.
- It Improves Your Brand Image
Businesses that demonstrate CSR gain exposure and praise for their involvement and project. If your company struggles to gain popularity online and press interest, a CSR initiative can be an excellent way to put your brand out in the market. It allows your business to get noticed, increasing brand awareness and overall brand affinity.
That said, be cautious about the reason behind your CSR projects. A CSR initiative that’s not genuine is considered greenwashing. If it’s out of line with your values and mission, people will question its purpose, even if it creates good results.
- It Secures Investment Opportunities
A CSR project allows you to meet like-minded people and build meaningful relationships. Among these connections, you’re likely to pique the interest of potential investors, which can be significantly beneficial to expanding and growing your small business.
Establishing a solid CSR initiative creates tangible and intangible value for stakeholders, making it more likely for them to support and invest in your business. Investors are actively looking for socially responsible businesses to invest in while pulling away from companies that don’t have a social mission.
Thus, the sooner you plan and implement your CSR project, the sooner you’ll make your company look more attractive to investors to fund your business’s growth.
Takeaway
In today’s modern world, the most successful, desirable, and respected companies do more than focus on their profits. Now more than ever, businesses that use their influence and resources to support social causes and projects create value for their community and their company’s success. Go out of your way to be socially responsible and show your stakeholders that your business deserves to grow.
