If you’re an entrepreneur with a high-profit business, then the days of operating solely for the profit of the organization are gone. Today, companies have been realizing their social responsibility and keeping aside a part of their net profit for the development of the society.
While contributing some share of profit for the benefits of society may be seen as a social responsibility, but, at the same time, it could help the companies to grab attention and get noticed globally. Taking this discussion further, here in this context we will discuss about the importance of CSR in business. So, let’s begin!
How Social Responsibility Matters to Businesses?
CSR which is an acronym for Corporate Social Responsibility is defined as the set of efforts made by a company to improve society in some way. These efforts may range from donating some amount of their profits to the NGOs to implementing environmentally-friendly policies in the workplace.
But, there still remains a question in mind, why social responsibility matters to businesses? So, let’s find out the benefits of constituting CSR:-
The way an organization treats its community reveals a lot of things about it. If it treats the community well, then the employees feel more respected and comfortable. Thereby, encourages them to make the most authentic efforts at work.
Engages more customers
The popular consumer survey company, Nielsen revealed very interesting results after a consumer survey. The survey revealed that 66 percent of consumers prefer to make a purchase from a socially responsible company. So, if your brand is known for its social value in society, then it will surely help you engage more customers and eventually get more sales. (Source: Nielsen Global Corporate Sustainability Report )
Positive public attention
Active CSR not only helps the companies to emerge as a role model for the others but, also lets them stand out for the good work that they do for the community. Further, the social efforts made by such companies are recognized and appreciated worldwide. Take, for example, the U.S. Chamber of Commerce Foundation's Corporate Citizenship Awards every year, honors the most accomplished social and community initiatives taken by a company.
Examples of Corporate Social Responsibility
Although there are a number of companies with an active CSR status, however, to get an overview, let’s have a look over the following two examples:-
Starting with we have the popular beverages company, Coca-Cola, which in the year 2010, started its 5by20 program, under the CSR initiative. Under this program, women all over the globe are offered skills training, mentorship and complete assistance to the women entrepreneurs. (Source: Coca-Cola Private Limited CSR Policy)
Next, we have the popular American multinational technology company, Apple Inc; which runs a Global Volunteer Program under its CSR policy. Under this program, it encourages all its employees to lay their helping hand for the development of the local communities. (Source: Apple Inc. Report )
All in all, CSR impacts not only the local communities but also empowers nonprofits, employees and the company itself. Further, CSR cannot be regarded as mandated practice; instead, it is something extra that companies do to create their social value in society.