The benefits of corporate social responsibility go beyond the reach of what businesses set up these policies in the first place. We have heard countless times by now that CSR is the ingredient that ties your entire organization and unites all the various stakeholders involved. With an increasing amount of research being done on the subject of the benefits of CSR, and all findings only having positive effects on all stakeholders involved, companies are increasingly rushing to incorporate CSR into their daily operations.
Regardless of whether businesses are working to eradicate poverty on a local, national, or international scale, or supporting women's and LGBTQA+ rights, the environment, or both. From an optics standpoint, socially responsible businesses present a more appealing image to shareholders and consumers alike, which benefits their business as a whole. We do not condone having CSR just for optics' sake as genuine goodwill goes a long way for society and humanity. But they do alleviate the overall image and reputation of a brand.
Ralph Fitz remarked, “I have found it helpful to keep constantly in mind that there are two entries to be made for every transaction-one in terms of immediate dollars and cents, the other in terms of goodwill.” Keeping this in mind, let us look at the long-term benefits your corporations will be able to reap from a good CSR strategy.
Engaged employees who have a sense of purpose
The use of social responsibility can boost employee engagement. These businesses frequently hire people who want to do more than just get paid; they want to change the world. With big companies, there is power in numbers and combined employee efforts can produce significant outcomes, boosting workplace morale and productivity.
According to research, employee engagement has a direct impact on a company's entire performance and bottom line since it increases productivity by 17%, makes a company 21% more lucrative and reduces absenteeism by 41%.
Nearly 70% of workers said they wouldn't work for a company without a clear and defined purpose, according to Harvard Business School. 92% of employees who work for socially conscious businesses say they would be more likely to suggest their employer to someone in their network who is looking for a job. Employees who work for organizations with a strong sense of purpose report feeling more inspired, driven, and loyal.
The bottom line is that even a small investment in CSR programs can raise employee engagement and have an effect on how lucrative the business can be.
Customer loyalty and support from the community
Social responsibility enables companies and consumers alike to use the platform to bring about a positive influence on a global and local level of society. Businesses that launch a social responsibility program consistent with their principles stand to gain more loyal and devoted customers.
According to research, 87% of American customers are more inclined to purchase a product from a company that promotes a cause that is important to them, and 76% would decline to do so if they learned that the company backed a cause that went against their values.
Companies with Good CSR strategies
To give an example of a corporation, with a good CSR strategy. Ford has ambitious aspirations for CSR. "Create a better world, where everyone is free to move and follow their goals," is their stated goal. Their goal is for their vehicles to be carbon neutral by 2050, and they have upped their investment in electrification from an initial $11Bn to $22Bn. This way they have attracted more customers and have increased their sales over the past year.
Another corporation with an exemplary CSR strategy is Wells Fargo. Each year, Wells Fargo provides up to 1.5% of its earnings to philanthropic causes to help more than 14,500 nonprofit organizations, including food banks and incubators for start-up businesses in the fields of plant science and renewable energy. The business contributed $6.25 million to aid a domestic and international response to the COVID-19 epidemic. The CDC Foundation will receive $1 million, the International Medical Corps will receive $250,000 to support its work in 30 countries, and local efforts to meet community needs will receive $5 million.
Is CSR for every company?
With a well thought CSR plan in action, you don’t need to shell out as much if you can’t. Even small businesses can take part in CSR programs on a smaller scale. You can do this by choosing a philanthropic route and volunteering at a local level. Alternatively, you can go the virtual volunteering route and have your employees volunteer online for various causes around the world.
CSR can improve brand reputation, promote employee morale, and motivate others to volunteer. Chezuba's comprehensive technology assists businesses in designing their CSR initiatives to meet particular demands and gauge employee engagement tactics. After a successful CSR program, the gained volunteer experience only serves to advance the interests of the company, its staff, clients, and the general public. To learn more, book a free demo with Chezuba.