Why Does CSR Matter So Much In Modern Society?
CSR or Corporate Social Responsibility serves as a challenging aspect of every business in modern society. Companies that inculcate CSR as part of their values and culture enjoy happy customers, motivated employees, and a high reputation in the corporate world.
In contrast, companies that act unethically stand to risk negative publicity, penalties, and fines. Most often, such companies fail to attract top talent in the market. As such, CSR is not anymore, a stand-alone initiative but an integral way in which modern businesses operate.
Whether one views CSR as a PR opportunity or an item to be cross-checked, or an intrinsic feature of modern business, the fact is that this cannot be ignored any longer by modern business.
What is CSR?
CSR is when a business operates sustainably and ethically and handles its social and environmental impact in a responsible manner. This implies a careful treatment of its community, human rights, society, and the environment.
It is tremendously important that your business operates in a mode that displays social responsibility. Though it is not a legal stipulation, it is viewed as a good practice to take social and environmental issues into consideration.
CSR is held as different from philanthropy. Regarding proper implementation, it should be embedded in the culture and values of a company and positively impact the way it does its business. For instance, it must impact the strategy of marketing & advertising and inspire the vision and mission of the company.
Importance to customers
Though there is currently a move towards socially conscious businesses, there is more demand pressed by customers. As per a Forster Communications survey, over 70% of 18-to-34-years old customers hold the opinion that businesses should work with more charities to deal with environmental and social issues.
In the case of businesses that have limited budgets, CSR should be regarded as a valuable investment. Almost 50% of consumers are likelier to purchase services and products from a business that endorses charities. Over 50% are likely to purchase from businesses holding strong stances on social and environmental issues.
Importance for employees
Ensuring the company has a strong CSR focus also impacts its internal stakeholders. As per a Forbes study, over 30% of employees will consider seriously leaving their current jobs if the company contributed little resources to charity. 65% would leave a company that actually damaged the environment.
The most sceptical of CEOs even hold the opinion that unethical actions of a company can risk the productivity, motivation, and commitment of staff. On the other hand, ethical integrity will encourage a happy environment and authentically empower employees.
Importance for millennial
As the number of millennial consumers and employees grows, companies must consider their CSR strategy seriously. Firstly, CSR plays a crucial role in attracting this market segment of consumers. Millennials are tech-savvy and do not hesitate to check online the company’s ethical practices and CSR initiatives.
Many Millennials have a strong sense of contributing positively to make the world a better place. This rapidly growing generation does not desire to support or even associate with companies that do not behave responsibly towards the society and the environment.
In sum, CSR is not merely a fad or a business trend. Businesses that desire to stay relevant to the new generations, contribute positively to the society and boost their bottom line as well need to actively embrace CSR.