We live in a world more cognizant of the constant need for an improved quality of life. Here consumers are increasingly aware of the wider social and environmental responsibilities and hence expect their favourite brands to shoulder them.
This has resulted in numerous businesses increasing their focus on CSR initiatives. CEOs now recognize the need to include environmental programs, human rights, ethical and sustainable practices, and other philanthropic community activities into the mix.
Some definite benefits of building corporate social responsibility initiatives are:
Enhanced public image
In today’s digital world there is widespread and immediate access to information. Company and brand reputations are under intense scrutiny and companies actively involved in CSR initiatives are gaining exposure and praise from the community.
Consumers feel good about buying products and services from companies that are socially responsible.
When given a choice they assess the public image of brands that they buy from. It is crucial that businesses recognize the importance of CSR initiatives to a brand’s public image. Equally important is the commitment demonstrated by the brand towards social issues. Don’t miss the opportunity to let the public know about your CSR community involvement. outreach programs and philanthropic work via social media channels to increase your brand’s public image.
Increased Customer Loyalty
Your commitment to ethical practices will definitely be a topic of conversation among the millennial consumer – a segment that is driving the market these days.
If your corporate values align with their personal ones they will be extremely loyal to your brand. This will, in turn, improve the awareness and recognition of your brand. A brand with community commitment, authenticity, and social value is in fact a leading purchasing driver.
Studies have found that millennials prefer to interact with corporations and brands whose messaging is pro-social, whose manufacturing is sustainable, and whose business standards are ethical.
Increased employee engagement and satisfaction.
It is believed that beyond being good for the brand image, CSR initiatives are also boosting employee retention and engagement in the workplace.
This happens because the employees enjoy working for a company with a good public image, as well as, begin to trust their employers as being a force of good and therefore find their work to be more meaningful and worthwhile.
This results in them being productive and satisfied at work. Employees expect their employers to be morally responsible and take a stand on important issues.
It is important for you to inform your employees about CSR initiatives and involve them in such strategies, in order to, improve employee motivation and loyalty.
This means involving all business departments, giving them an opportunity to volunteer especially during working hours, and to create a sense of community within the organization as well as in the surrounding community.
Employees actively involved in community engagement become your brand ambassadors and further improve the image of your company.
Businesses can derive an additional benefit from engaging in CSR activities in the form of cost-saving.
Incorporating sustainable practices and operations into the DNA of the company can accrue substantial savings and financial rewards. With environmental accountability sustainable operations can be put in place such as the use of renewable energy, reducing carbon emissions, and a decrease in waste production.
Moving ahead of the competition
By implementing CSR activities you automatically stand apart from the competition. The need to address socio-environmental issues and implement them into CSR initiatives is becoming well recognized as a way to out beat, if not keep, pace with the competition.
In a few years from now, the most successful organizations will be those that shifted their priorities and recognized that the landscape was changing due to various factors but especially due to the pandemic.
These will be run by CEOs who embedded CSR activities into the fabric of their companies and addressed the demands of their consumers.
In this digital era, consumers can observe every activity of business processes. They can rally support for or quickly launch campaigns against business practices with the click of a button and at zero cost.
It’s no longer an option for companies to commit to CSR initiatives. As stated above, CSR affects the internal and external growth of a company. Internal through employee engagement, productivity, and turnover rate; external through increased sales, customer loyalty, and brand awareness.
CSR initiatives are therefore the ideal opportunity for companies to showcase their core values, create lasting bonds with their employees and customers, manage costs, and keep pace with the competition.
To do this effectively the C-suite must lead their companies in adapting new skills critical to CSR development.
CEOs must learn to engage and dialogue with the different stakeholders involved. Additionally, they need to approach challenges with innovation and develop tools needed to measure social engagement.
CEOs will now be able to lead their companies towards significant engagement, alignment, and ultimately success in this increasingly socially engaged world.
If you are a startup founder and need help with setting up your CSR initiatives we can help you.
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