Corporate Social Responsibility
Corporate Social Responsibility
Corporate Social Responsibility
Company policies that insist on working with partners who follow ethical business
practices
Reinvesting profits in health and safety or environmental programs
Supporting charitable organizations in the communities where a company operates
Promoting equal opportunities for men and women at the executive level
Some aspects of CSR may be required by law. For example, banks and hospitals are
legally required to protect people’s private information. Others are voluntary.
The benefits of CSR are many. Companies establish good reputations, attract positive
attention, save money through operational efficiency, minimize environmental impacts,
attract top talent and inspire innovation. Public companies often report on their CSR
performance in their annual reports.
CSR matters for companies because if the community does not approve of how they do
business, they may lose customers or see their reputations suffer. The news media and
activist groups often watch companies closely and are quick to publicize instances of
irresponsible behaviour.
Cooney stated that in CSR, transparency and honesty about what you're doing are
paramount to earning the public's trust.
"If decisions [about social responsibility] are made behind closed doors, people will
wonder if there are strings attached, and if the donations are really going where they
say," Cooney said. "Engage your employees [and consumers] in giving back. Let them
feel like they have a voice."
For instance, Burk added, Cadence gives $100 each year to the charity of choice for
each employee.
"Start integrating your ethos into your culture," Burk said. "Even if you don't have a huge
cause to focus on as an organization, you can always start with what is important to
your employees."
You should also involve your consumers, allowing them to see firsthand the work you
are doing for your community.
"If a brand has good news to share, like organic ingredients or recycled content, they
should let consumers know," said Boynton. "Consumers deserve to share in the good
feelings associated with doing the right thing and many surveys have found that
consumers are inclined to purchase a sustainable product over a conventional
alternative. Announcing these benefits is a win-win from both a commercial and
sustainability perspective."
Maintenance is another major part of CSR. You must actively and consistently work on
your process; it's not a one-time deal.
"To keep your CSR efforts thriving, you need momentum and passion, and that have to
come from the top," said Burk. "Your stakeholders need to be fully committed. Focus on
responsibilities that are meaningful and relevant to you, your clients, your employees,
and your partners."
For some great examples of small businesses that put CSR at the heart of their
operations, check out this Business News Daily article.
Remember, consumers feel good shopping at institutions that help the community. Clean up your
public image (and broadcast it to the world!).
Corporations can improve their public image by supporting nonprofits through monetary donations,
volunteerism, in-kind donations of products and services, and strong partnerships.
By publicizing their efforts and letting the general public know about their philanthropy, companies
increase their chances of becoming favorable in the eyes of consumers.
Make sure you’re forming relationships with local media outlets so they’ll be more likely to cover the
stories you offer them.
How much good a company can do in its local communities, or even beyond that, is corporate social
responsibility. And the better the benefits, the better the media coverage.
3. BOOSTS EMPLOYEE ENGAGEMENT
Employees like working for a company that has a good public image and is constantly in the media
for positive reasons.
Nearly 60% of employees who are proud of their company’s social responsibility are engaged at
their jobs.
When companies show that they are dedicated to improving their communities through corporate giving
programs (like matching gifts and volunteer grants!), they are more likely to attract and retain valuable,
hardworking, and engaged employees.
Investors who are pouring money into companies want to know that their funds are being used
properly.
Not only does this mean that corporations must have sound business plans and budgets, but it also
means that they should have a strong sense of corporate social responsibility.
When companies donate money to nonprofit organizations and encourage their employees to volunteer
their time, they demonstrate to investors that they don’t just care about profits.
Instead, they show that they have an interest in the local and global community.
Investors are more likely to be attracted to and continue to support companies that demonstrate a
commitment not only to employees and customers, but also to causes and organizations that impact
the lives of others.