Studies have shown that businesses with strong corporate CSR programs can build deeper connections with employees, customers, and other key stakeholders.
When setting up a start-up, in between all the pressures that come with the process, the last thing you want to worry about must be Corporate Social Responsibility (CSR). If it is even in your thoughts at all, it’s probably placed after acquiring investment, clients, new talent, and, of course, earnings and profit will be top considerations. And rightfully so, given that the business is only getting off to a strong start by firmly establishing these basic structures.
Though corporate social responsibility for startups might not occupy the forefront of your mind, all research suggests that a good CSR program can have a positive impact on all of the important aspects of your organization. For your startup, having a strong CSR plan in place can go a long way toward securing your success and giving you a competitive edge.
Here are six reasons why you should create a CSR strategy for your business, whether you're a startup seeking justifications or even someone who isn't actively considering it.
According to the Deloitte Insights 2020 Global Marketing Trends Report, purpose-driven firms retain their employees at rates that are 40% higher than those of their competitors. One Deloitte report notes that this generation is more interested in social and environmental issues than previous generations. In addition, they now make up a larger portion of the workforce. When choosing an organization to join, they also search for ones that address these issues head-on. By 2025, it is anticipated that millennials will make up 75% of the workforce worldwide. Thus, having CSR programs in place is beneficial for your startup to attract and retain good talent.
CSR can begin precisely where your operations are currently focused. You can improve operational efficiency and drastically save expenses by fostering sustainability and energy conservation, streamlining procedures, and other similar practices. The cherry on top is that people who work in greener facilities might be more productive. Lighting that is energy efficient is another approach to cut costs because it uses less electricity and lasts longer. Another approach to lower energy bills is to use solar panels.
With all the buzz that CSR has spurred, when evaluating possible investments, investors now include a company's environmental, social, and governance (ESG) factors. According to a poll by the British advice firm DeVere Group, investors prioritize ESG considerations over more conventional criteria like expected returns, past performance, risk tolerance, etc. According to DeVere Group, 77% of 1,125 millennials said that when evaluating investment prospects, issues of good governance, social responsibility, and the environment come first.
Startups are driven by passion and purpose. This motivation drives entrepreneurs and employees to transform their company beyond its just commercial interest. It's simple to believe that issues like CSR and sustainability only concern major businesses. However, that is untrue. Regardless of size, any firm may benefit from a CSR plan. Startups can no longer afford to put CSR on the back burner. Especially in a generation as informed and resilient as today's, it permeates everything we do. CSR may greatly improve the financial performance of a company with a strategic approach and committed leadership.
Your brand's reputation can be improved by promoting your CSR initiatives and showing the positive impact you have on the neighborhood where you do business. Your CSR initiatives may end up serving as the focal point of how you distinguish yourself from the competition because building brand recognition is a primary concern for startups.
People will remain loyal to a brand if it matches their beliefs and works to address issues that affect everyone. Imagine what it implies now that millennials alone in the US have an annual spending power of $200 billion. We have noticed that companies that allowed their employees to be a part of the change become advocates for the organization. This way CSR programs create a loyal consumer base for their brand and products.
We are a start-up too, built on the vision of helping corporations, large and small alike, to assimilate a culture of employee giving and volunteering. With widespread benefits, such as employee engagement and retention of top talent, corporate volunteerism as a part of CSR has become much sought after.
Chezuba’s high-tech platform allows you to integrate a culture of employee volunteering seamlessly. With projects from across 100+ countries, fun challenges to keep your employees engaged, and a dashboard that allows you to view your program’s success in real-time, Chezuba’s platform caters to all your HR needs. Book a free demo with Chezuba to learn more.