Corporate Social Responsibility and Its Impact on Business Growth

on May 12 | in Business | by | with Comments Off on Corporate Social Responsibility and Its Impact on Business Growth

Until a few years ago, companies were content with their contributions towards society in the form of employment opportunities, products and services. The thinking behind this has changed and more and more companies are taking on the responsibility of contributing towards the world in a more meaningful way.

In fact, what was a rare occurrence before has become the norm and the CSR has become part of business strategy. Brands have now begun implementing innovative ways in which to tackle social issues such as poverty, climate change and other social factors.

While it may be nobler to think that businesses have been making these efforts purely out of the purity of their heart, we need to consider real world factors. The fact is CSR has been translating into business growth for companies that choose to dabble in it.

The expectations of the customer have evolved and they have begun to expect much more than product quality and services when they evaluate the value of a business.

Recruitment

When you start investing time and finances towards CSR, you have a more likely chance to not only recruit but also retain capable employees. The cause for CSR allows them to contribute through their job towards the world in a more meaningful way. For employees that want to make an impact on the world, CSR is an important factor for employment. In fact 53% of employees have revealed that they want to work in an environment where they can make a difference.

Productivity and Motivation

When employees feel they are contributing to a much bigger cause they are more likely to be motivated to carry out business tasks. The increase in productivity has a direct result on the ROI of the company. In addition, since retention is more likely in this case it also avoids the cost that may be incurred at the time of replacement.

Positive Press Coverage

Getting the word out on your company is important for its growth. When contributing towards a cause, it is more likely to shed positive light on your brand. In addition, your brand will now be associated with social services.

Increased sales

Studies show that more than half of the people in the USA, when given the choice between two similar priced products will choose the one that would have a better impact on the world even if they are not particularly inclined towards environmental safety. CSR will ensure that your brand is synonymous with social responsibility. Customers will get the opportunity to contribute to the environment through your organization.

Investors

As corporate social responsibility yields so many advantages, investors are likely to understand them and be more willing to invest in your venture. Companies that have been working towards CSR are more likely to attract investors.

Reduce operating costs

Another factor which has a direct result on the growth of your business is that of reducing operating costs. As your business becomes much more sustainable, it will focus more on saving energy and resources. Eco efficiencies will ensure the recycle of items that would otherwise have been trashed.

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