Corporate social responsibility (CSR) is when a company positively impacts its community and takes care of environmental and social issues. The good thing about CSR is that it improves a brand’s image, increases employee engagement, and boosts loyalty.
Companies with engaged employees have lower absenteeism rates and are 21% more profitable. CSR, if done well, can help boost your employees’ morale and productivity. What other business benefits does CSR have?
Healthier Company-Consumer Relationships
A company that values its community builds positive relationships with the people. Locals are proud of CSR efforts, even if they don’t impact them directly. CSR can lead to healthier company-consumer relationships.
Internally, CSR boosts employee retention. When a company does good for society, it creates a positive work environment for its employees. It also shows them it values the community they live in. When appreciated, around 69% of employees work extra hard.
Builds Public Trust
Consumers are likely to trust a company when it consistently supports the community through volunteering or monetary donations. In the long term, a company that earns public trust becomes more popular.
For example, auto companies can use CSR to give back to the communities they serve and create a positive impact on the environment. They can recycle scrap metal or motor oil to decrease their carbon footprint.
Others can reduce their energy consumption by only using energy-efficient vehicles and sharing the car stock photo images on social media. Soon, the local media and press organizations will take notice and publicize them.
To become a more sustainable company, take advantage of CSR. Start by using renewable energy to reduce greenhouse gas emissions. That way, you’ll become recognized as a socially responsible company.
Carbon dioxide accounts for nearly 76% of total greenhouse gas emissions. To positively impact the environment, use renewable energy or switch to fully electric company cars. By doing this, you’ll also save your company money.
It’s also important to consider how your company performs across the key five factors of sustainability:
- The capacity to deliver (what supports what you do?)
- Economic viability (how do you fund what you do?)
- Business strategy (do you have a focused one?)
- Social impact (why do you do what you do?)
These factors are relevant to any company at any point in time.
Encourages Personal and Professional Growth
When a company instills a CSR culture in the workplace, employees are likely to enroll in volunteer programs and feel compelled to make donations to nonprofits. In short, employees become philanthropically minded because the company encourages this behavior through CSR.
When your company is committed to improving its community, your employees will feel inclined to volunteer and become part of the process. Such CSR efforts foster their personal growth.
CSR does so much for a company while benefiting the community and society at large. Not all companies have a CSR culture, but considering its benefits, companies should make it a priority and work towards becoming socially responsible. It pays off big time.