It may truly be challenging for companies these days to make changes in the business in order to shift to a more socially and environmentally responsible kind when doing more with less is often expected. However still many resolve to do "good" and be proud of it in the workplace as return on the investment becomes visible. In truth, social responsibility adds to the company's result thus cause the difference in the community.
To adhere to the ethical and legal standards beyond the company's operations is what defines CSR or Corporate Social Responsibility. Herein you need to promote and support causes locally, nationally and even globally. Corporate philanthropy is a means by which this is achieved such as company donations to charitable causes.
If your company has a well-designed and accurately executed "giving program" you can have the competitive advantage through:
Improving name recognition Boosting brand reputation among consumers Increasing sales and positive consumer sentiment Assisting in efforts to recruit and retain talented employees for your company Improving the quality of life in communities where you do business
Consumers basically choose to buy from businesses with social responsibility as revealed by research. Public relations and marketing firm Cone Communications and Echo Research in their study early this year revealed that about 90% of the shoppers are inclined to shift brands in support of a good cause even when price and quality is similar. If your business is not socially responsible you are more likely to lose customers. Still 90% of the surveyed customers are willing to stop supporting businesses with irresponsible practices.
It is but the latest reminder that companies should get involved in social responsibility because customers look this from them. Mere selling products or services are now insufficient. Consumers look for business with real meaningful impact. And so, several business owners are starting to heed this. Social responsibility no longer remains confined within the public relations department because now companies are trying to integrate it into its whole operations. This commitment is now more evident in terms of the kind of jobs offered, kind of products manufactured and how resources are utilized.
You see, CSR these days are looked at by companies as long-term investment rather than mere marketing moves. Coca-Cola in its 5 x 20 program presents a clear example where it aims to give opportunities to five million women in the developing world to become local bottlers and distributors of Coca-Cola products by 2020. These young women entrepreneurs are being empowered to act as investments as they can generate more sales after gaining them as additional bottlers capable of selling more products. This move will also cause better-educated people to become apparent and eventually turn communities in need of help into more prosperous ones.
Some companies view CSR as their passport to savings. Take energy efficiency as a good illustration. With Wal-Mart's social responsibility policy, they aim to achieve three goals: that ability to gain a good supply of renewable energy, to establish zero waste, and to market no less than products which are sustaining to people and the environment. Though quite lofty, these goals will definitely help the company save money.
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