Women In Business

5 reasons for your business to be socially responsible

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Corporate social responsibility (CSR) is a concept with many interpretations. The way it is understood and executed differs greatly for each company. Despite varying definitions and practices, one thing is universally understood: CSR programs are becoming an essential component of business in today’s world. Here are the top five reasons why more and more companies are embracing the opportunity to give back.

1. Fosters goodwill in the community

Giving back to local causes creates a sense of mutual support between your business and the surrounding community. Investing in the community is ultimately an investment in your company and results in a “If you have our back, we’ll have yours” mentality. Setting up employee volunteer programs is a great way for company representatives to connect with community members. Some companies will even offer their employees volunteer days as part of their PTO packages, providing even more incentive to be active in the local community.

2. Strengthens reputation

Corporate giving and employee giving programs are great ways to enhance a company’s visibility while creating a reputation for doing good. The key to achieving these results is open communication between a company, its employees, and the public. Publishing annual reports on CSR programs and issuing press releases about major partnerships, initiatives, or events are two good ways to spread the word.

3. Attracts investors

Investors are more likely to be attracted to and continue to support companies that demonstrate a commitment to charitable causes that impact the lives of employees, customers, and the local and global communities. In fact, a recent study revealed 83% of professional investors are more inclined to invest in a company that is well known for its CSR, viewing such initiatives as an indicator of greater transparency and honesty in operations and financial reporting—resulting in lower risk.

4. Increases revenue

In addition to expecting quality products and services, many customers are more likely to buy from a socially responsible company. One study found that 55% of global consumers will pay extra for products and services from companies committed to positive social and environmental impact. In other words, doing good things is good for your business.

5. Boosts employee engagement

Good people are at the heart of every good corporation, and smart executives recognise that each dedicated member of their workforce is a brand ambassador. CSR is expanding to include creative programs designed to engage employees in the company as a whole. Corporate gift matching, Dollars for Doers, volunteer days, and student mentoring programs strengthen an internal sense of community and build employee loyalty, all while contributing to the greater good at the core of CSR initiatives.

Essentially, the socially-conscientious consumer market segment is growing. Aided by social media, consumers are pushing companies to be more ethical and transparent in their business practices. In addition, this generation of employees is becoming more socially aware, and they want to work for organizations that share their values and facilitate ways for them to make an impact.

About Faye Ferris

Faye Ferris is the APAC Sales and Marketing Director for BusinessesForSale.com, one of the world’s largest online global market places for buying and selling small-to-medium sized businesses. Faye is passionate about helping Australian small business succeed and regularly writes about entrepreneurship and business management. Twitter Handle: https://twitter.com/youareyourboss

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