Corporate Social Responsibility: How It Helps Businesses
Up until a couple of decades back, business success was primarily measured in terms of the returns, shareholders received on their investment and financial bottom lines. Organizations began to consider corporate social responsibility as an alternative priority only in the 1950s- 1960s.
Corporate Social Responsibility means that an organization deems itself responsible for all the consequences of its operations and decisions on the society, the environment, and other aspects. Corporate social responsibility does more than just donate money or print brochures for the conservation of trees. It also contributes to the community’s health and well-being by acting ethically and transparently. And therefore, this must be embedded into every business’s operation.
As a matter of fact, embedding corporate social responsibility into a business’s operations shouldn’t even be viewed as an option but as a mandatory requirement. Here are the top reasons why:
- It impacts the community positively
Companies should take corporate social responsibility seriously and act ethically to minimize the negative effects of their business decisions and operations on the community. Businesses can reduce or eliminate the impact of their business on the community by being sensible while devising various business strategies.Sometimes, companies may be able to make improvements to their services and products in such a waythat it directly or indirectly contributes towards the greater good of the society.
- Supporting public value outcomes
Public value can simply be defined as the social benefit that an organization provides to the people in the society. Corporate social responsibility frameworks and corporate mindsets that are strong and effective can really help companies deliver great public valueresults. Companies should always focus on how their services will make a difference for the people around. This can happen in two ways: indirectly or directly through company activities like volunteering and philanthropy.
- Being a preferred employer
A company is referred to as a preferred employer when it’sable to attract and retain high-skilled employees. There are several ways to approach being a preferred employee, such as ensuring employees’ work-life balance in addition toproviding flexible work hours and positive working conditions. A strong corporate social responsibility framework can help companies attract highly skilled potential employees who are looking for work environments that have sound ethics, social attitudes, and socially responsible practices.
- Encourages personal and professional growth of employees
Companies may helptheir employees gain new skills by giving them the chance to be involved in company’s socially responsible activities. With such opportunities, employees have the chance to take action outside of their normal work responsibilities. This allows them to share their passions and help to enrich their perspective. Organizations can support these activities and in turn, encourage employee growth.
- CSR boosts companies’ relationships with customers
It is crucial to have a strong corporate social responsibility program in place for customers and employees. It can strengthen existing and potential customer relationships and help build newalliances. Offering pro-bono or similar services is one way to achieve this. Companies can partner up with non-profits to support their public-value outcomes. This helps deliver results that may not otherwise be available.
With a strong Corporate Social Responsibility framework, businesses don’t just benefit the society at large but also themselves in numerous ways.