Is Corporate Social Responsibility important for your business?

“The time is always right to do what is right." (Martin Luther King Jr)

Corporate Social Responsibility (CSR) has been debated for some time now; with business owners commonly questioning and doubting whether or not CSR is beneficial for us as a company? Will it help to increase profits? How much is this going to cost me, taking into consideration time, effort and money?

Or is this just a “nice idea”.

Often businesses have taken a strong skeptical viewpoint, accusing CSR of being merely window-dressing and public relations puffery. This initial standpoint from corporate businesses however were usually the opinions of the individuals directly benefitting from the company’s profit levels.

“Generosity with shareholders money is not philanthropy, it is theft!” (Hopkins 2007)

CSR on any scale can be seen as positive for both the professionals and beneficiaries involved, ultimately larger corporate powers need to be shouldering the responsibility they have to aid and support less fortunate environments or structures.

Unfortunately CSR is still very much an optional strategy which while this is not ideal for the greater good, does open up the opportunity for smaller SME’s to use as a tool very much in their advantage.

It is easy to understand why a business would potentially place the concept on the back burner in climates such as these; however are you overlooking CSR as something to take part in only when times are affluent when in actual fact it’s during the challenging times that being a “responsible business” is more important than ever!

Companies that are finding themselves affected by difficult climates are needing to change their short term thinking into longer term strategies, several of which could be strongly influenced by positive CSR.

Five beneficial reasons why your company should embark on their CSR journey:-

1.       Enhanced brand image and reputation

A good reputation is vital for a successful company, with the rapid growth of social networking it is becoming more and more relevant and vital for SME’s as well as corporate to have a strong positive brand image. Companies gain referrals and testimonials to increase trust and reputation for prospective clients to view, this same theory can be applied to positive CSR.

2.       Increased sales and customer loyalty

More and more consumers and suppliers are focusing their purchases towards socially and environmentally responsible products/services.

In European studies results have shown that 2 in 5 people would be willing to pay more for a product/service that have a positive CSR and conversely 3/6 people actively boycott or support products/services also on their public CSR.

Coupled together with a company’s USP’s these elements provide a powerful statement to be utilized.

3.       Increased productivity

Employees are vital to a company’s success and it has become more and more apparent that by investing in your work staff and valuing their input, strongly increases productivity.

Peoples awareness of social issues are greatly increasing with easier access to information becoming readily available and on a personal level there has recently been a massive increase in the number of volunteers received within local communities.

This therefore implies that employees on a personal note are taking action more and will naturally expect the same attitude and sense of responsibility to be applied within their working environment also.

4.       Attraction and retention of Employees

A company’s dedication to CSR can really be a drawing point for potential employees at all levels. Graduates are aware of the current climate and therefore leaving university in search of career prospects within a company that have longevity and security; no longer are people solely driven by salaries.

The same can be applied to the senior individuals where slight salary increases matter even less, employees look for values and respect not only in them but within the organization itself and CSR can provide the perfect tool to display this effectively.

5.       ‘Keeping up’ with competitors

This is where business is heading regardless of the company and regional culture, no matter how small your input CSR can only provide your company with positivity.

A companies reasons for beginning their CSR will all be differing however more often are local authorities, employees , investors and suppliers beginning to place pressure on the decision maker to “do the right thing” this is for your CSR but also and inevitably for your business.

Those that get left behind especially in a business climate such as this are going to be missing out on business opportunities, competitor advantage and improved management opportunities.

Here are just five points that will hopefully encourage you to embark on your CSR journey if you have not begun it already.

Those company’s not engaging in CSR are not only under managing their impact on society and the environment, they are under managing their own economic self interest.

“The future belongs to those who understand that doing more with less is compassionate, prosperous, and enduring, and thus more intelligent, even competitive." (Paul Hawken)

Check out our latest blog to see how ClarkeWood Consulting have been actively promoting their CSR!!Network4Charity