What CSR and how does it affect my business?
Corporate Social Responsibility is a measure of a company’s initiatives that affect their impact on the environment and social good. Also called corporate conscious, CSR is a read on how corporations decide to take an ethical stand.The goal of CSR is to add a measure of value to the company based on the perceived social and environmental responsibility by consumers, employees, investors, communities, and others. This means the assessor needs to identify the initiatives of the company as going above and beyond normal compliance with laws and economic success.
Examples of CSR include a law firm that has a full pro-bono team dedicated to working in healthcare or environmental sector, or a company deciding to invest in solar panels. This is a unique turn on business as it adds a perceived value that is frequently unquantifiable, making it difficult for corporations to calculate the return on investment of CSR. Most consumers agree that they would rather support a company that has some social impact initiative set up- such as charity donations or supporting the local businesses. Oddly enough, the reviews on environmental efforts are mixed as there is a perception that it could affect the service the consumer receives.
Why is Corporate Social Responsibility important for your business? By recognizing the moral relevance of enacting moral practices in business, there are many benefits. Corporate and Social Responsibility inspires leadership within many industries that can traditionally have a reputation for being socially or environmentally unconscious.
Beyond the social aspects, CSR also includes acting and working efficiently so of course this will also save money and increase employee retention. Many companies that encourage their employees to be involved in their efforts see happier employees and sustainable success. You can donate to many organizations, but when it comes to sustainable CSR, the initiatives need to be proliferated and supported by employee behaviors. Many companies try and fail to develop a strong CSR reputation while there are many superficial initiatives that can momentarily impact the footprint of a company, the corporations that succeed integrate their strategies deeply within the core of their business. This requires strong employee cooperation and engagement and a different view of a bottom line. As a representative of The Verdigris Group tells Forbes: their clients, partners, and employees “take pride in being involved with a company that is focused on the triple bottom-line of people, planet, profit.”
Corporate Social Responsibility has proved valuable to corporations, and while it requires a commitment, the return in profit, reputation, and legacy can be great. For each initiative, however, it is vital to get the word out to your clients, investors, and even employees. While doing good and being philanthropic is always important, CSR is different from these and sustainability because it is about the perceived value of your efforts to these parties. Some coverage and attention should be brought to your initiatives to have the highest return. Stay within your means, but be daring and creative in your projects. Your audience will take note of you as a CSR trailblazer.