To make a shift to social and environmental responsibility companies are expected to implement changes in their business which causes quite a challenge to them given the "do more with less" reality of today. Even so, several businesses still opt to make that change - to do good and take pride of it in the workplace because return of investment becomes truly visible. With social responsibility comes an increase in the goal met by companies while at the same time making a difference.
Corporate social responsibility (CSR) can be defined as adhering to ethical and legal standards across a company's operations. That includes promoting and supporting local, national and global causes. That's typically achieved through corporate philanthropy, where businesses donate some of their profits or resources to charitable causes.
If your company has a well-designed and accurately executed "giving program" you can have the competitive advantage through:
Improving Recollection of the Company's Name Improving Brand Recognition Garnering Higher Sales & Increasing Customer Feedback Increasing Retention of High Quality Employees Improving the Conditions in your Community
Research shows more consumers are basing their buying decisions on corporate social responsibility. A study earlier this year by public relations and marketing firm Cone Communications and Echo Research revealed 90 percent of shoppers worldwide are likely to switch to brands that support a good cause, given similar price and quality. The study also shows businesses that aren't socially responsible run the risk of losing customers. Again, 90 percent of the shoppers surveyed would boycott companies if they found the firms engaged in irresponsible business 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.
CSR is not just a marketing move but a long-term investment as perceived by companies. An example is Coca-Cola with its company 5 x 20 program aiming to bring five million women into the business as local bottlers and distributors in the developing world come 2020. By investing on empowering young women entrepreneurs Coca-Cola's revenue will be increased as more bottlers will be added and so more products will be sold. On an additional positive note this investment will result in better-educated people and consequently more well-off communities particularly in areas in need of help.
Other companies look at CSR as a way to save money. Energy efficiency is a good example. Wal-Mart has three goals of its social responsibility policy: to be fully supplied by renewable energy, to create zero waste, and to sell products that sustain people and the environment. These are lofty goals, but if achieved, they will ultimately save the company a great deal of money.
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