Read our in-depth blog post about the significant advantages of Volunteer Time Off (VTO) as a Corporate Social Responsibility tool and how it helps both workers and employers.
Studies have shown that businesses with strong corporate CSR programs can build deeper connections with employees, customers, and other key stakeholders. However, the CSR landscape among companies constantly evolves, with trends changing every few years.
Consumers now focus on purpose when deciding what to buy, where to shop, and how to invest. They are now looking at more than just financial performance. And these decisions are highly influenced by a company's values and the actions it takes to impact society. Hence, a company's values and societal impact should be purpose-driven, a foundational motivation for the organization's existence. Consumers may stop using a brand if they disagree with the company's words or actions on a social issue.
Corporate CSR programs are also influencing the decisions of investors. They not only focus on financial performance but also on how a company contributes positively to society. Investors use financial data to assess companies and turn to social, environmental, and governance information to decide on their investments.
Traditionally, companies and their leaders would keep a distance from social issues. But in recent years, stakeholders expect them to have an opinion on contentious social topics. This is a drastically growing trend and is unlikely to end anytime soon. Employees and consumers will continue to demand this kind of action. However, speaking out also comes with risks since different issues evoke controversies among the public. Hence, each company needs a process to keep its values true.
Organizations today not only speak about political issues but also issues like climate change. Companies are now pushing for stronger international action on climate change. Therefore, corporate leaders must keep a strong eye on these trends to ensure that their company is purposefully leading.
Some important CSR trends include fair opportunities, people from all backgrounds, and differentiated support. Equity and diversity are taking the front seat in the CSR landscape. Many corporations are conducting training focusing on such issues and providing solutions to build and maintain trust and a safe work environment for employees.
It is expected that more companies will make equity, diversity, and inclusion a top priority within the communities they serve. Companies are now focusing on increasing the number of black, Hispanic professionals, female workforce, and LGBTQIA+ professionals. These efforts will likely remain forefront as employees push for workplace changes.
This is an excellent way for organizations to increase job satisfaction and build team morale while playing an active role in the community. The employee volunteer program is a continuously growing trend, and its impacts are significantly noticeable. These efforts have increased dramatically since COVID-19, as many companies offer virtual volunteering services to the community, such as live training cases, online tutoring and mentoring, and administrative services to non-profit organizations.
As consumers expect their favorite brands to lead the way with effective CSR programs, companies now have a social responsibility they should meet. Hence, organizations must identify what is working and what can be improved.