In today’s business climate, it’s not enough for companies to produce great products at reasonable prices. Customers and employees alike expect the companies they do business with to use their resources and influence to bring positive change to the world. In this article, we will highlight the benefits of CSR (corporate social responsibility) and why companies should make this strategy a focus.
Many employees believe that it’s no longer acceptable for a company to solely focus on making profits; it must also positively impact society. This approach is known as corporate social responsibility (CSR).
Guest of the Team Building Saves the World podcast, Stewart Downey, explains CSR like this:
“The idea is that a company that wants to give back to the community, nonprofits, or charities across the local, national, or global level can do so by adding a CSR effort for their team. It also means that it gives their employees a chance to volunteer and give back too.”
What Is CSR, and Why Is It Important?
Corporate social responsibility is the concept of incorporating philanthropy, ethics, and activism into business practices to benefit both society and the company itself. Adopting a CSR strategy also helps corporations build closer relationships with their employees and customers.
There are four major types of corporate social responsibility:
Environmental social responsibility: This facet encompasses a company’s efforts to reduce its impact on the environment such as ending investment in fossil fuels. Other examples of the environmental advantages of CSR include:
- Clean water initiatives
- Pollution cleanup
- Reducing waste
Ethical/Human rights social responsibility: Ethical considerations involve measures a company takes to ensure that its business practices are fair. Refusing to purchase materials produced by child labor is an example of an ethical CSR response. Other examples of human rights CSR include:
- Ensuring humane treatment of animals in supply chain
- Providing clear financial reporting
- Protecting customer privacy and data
Philanthropic corporate social responsibility: Philanthropy represents a company’s efforts to give back through charitable donations, fundraising events, and more. An example of philanthropic CSR would be organizing a fundraiser for a charity. Other examples include:
- Creating public health initiatives
- Offering an employee volunteer program
- Providing disaster relief assistance
Economic social responsibility: This type of CSR involves financial sacrifices a company makes to ensure things like fair pay and sustainable business practices. Executives who divert a part of their salary into profit-sharing are practicing economic CSR. Other economic CSR examples include:
- Providing a fair minimum wage
- Offering affordable products to low-income markets
- Supporting local suppliers and businesses
Talking about the importance of CSR, Bailey Goldstein, Creative Director of TeamBondingCSR, says, for brands “your image matters, who you are matters, and what you do matters.”
In other words, businesses can no longer be just about business. They must also take on a certain level of social responsibility because it matters to their customer base, employees, and the community.
10 Benefits of Corporate Social Responsibility
The full list of CSR benefits is endless, but let’s look at ten of the most widely recognized pros of social responsibility:
1. Increased Brand Recognition
Tapping into the zeitgeist with a socially conscious CSR effort can bring your brand to the attention of people who may have otherwise never heard of it. People are hungry for positive stories. If you associate your brand with positive social and political change, you can earn the type of media coverage you can’t buy from advertisers.
2. Boosted Company Reputation
Recognition isn’t worth much if your reputation is tarnished. Lending a helping hand, making sacrifices in the name of fairness, and engaging in sustainable business practices paint your organization as worthy of its growing recognition among consumers.
3. Bolstered Public Trust
Once your reputation for CSR work is established, you can’t rest on your laurels. Many consumers intrinsically don’t trust corporations and think they’re “just in it for the money.”
By supporting community initiatives with ongoing funding and producing public proof of your egalitarian organizational principles, you can keep the trust you earned by building yourself as a socially responsible brand. And that trust goes a long way. In fact, highly trusted companies outperform others by up to 400% in market value according to Harvard Business Review.
4. Improved Customer Loyalty
If you can show that you give back, customers are willing to come back repeatedly. A study by Statista found that 70% of customers are more loyal to companies that showcase CSR efforts. Something as simple as hosting a fundraising event for a local food bank can reinforce the public perception that you have the community’s back and encourage the community to have yours so you can reap the benefits of corporate social responsibility.
5. Accelerated Capital Growth
If you’re boosting your brand, enhancing your reputation, gaining public trust, and inspiring customer loyalty, this may positively impact your bottom line. Positioning yourself as “part of the team” gives you a chance to reach a wider customer base and price your products and services with a social consciousness premium.
Additionally, corporate social responsibility initiatives are a smart move for businesses looking for funding. More than 70% of investors are more likely to invest in a brand dedicated to social and environmental good.
6. Deepened Competitive Advantage
Maintaining a reputation as a giving, grateful, and socially conscious organization is not an approach every business takes.
When you adopt a CSR strategy, you set your business apart from more seemingly traditional concerns that are “all about the money.” By earning more community trust, you can position yourself as the preferred option in any saturated market.
7. Employee Retention Rates
Today’s employees find fulfillment in working for a socially responsible company, which means your CSR efforts will make them less likely to quit. According to study by Porter Novelli, 95% of employees who work for purpose-driven companies report that they are more loyal to their employer.
With employee retention being more difficult to achieve than it’s been in a generation, refusing to address corporate social responsibility concerns can have a caustic effect on your company’s ability to attract and keep top talent.
8. Invigorated Employee Engagement
Your motivation to make a difference in society motivates your employees to engage more in their work. In a whitepaper published by America’s Charities, CSR practices are directly linked to improved job performance and productivity among employees. Due to this increase in employee retention rates and engagement, companies also stand to benefit from reduced costs.
9. Revitalized Relationship Building
Whether it’s with your customer base, workforce, business associates, or the world at large, strong CSR efforts will help you forge relationships that can be beneficial to everyone involved.
The advantages of corporate social responsibility to companies may be larger than you’d expect.
Stuart Goldstein described this on the same Team Building Saves the World podcast when he pointed out that “it’s actually something that consumers are looking for.”
“More than 50% of consumers are willing to pay more for a product or service if the business prioritizes sustainability. These are all things that companies need to think about if they want to be successful in the future.”
10. Greater Sustainability
Destroying the environment will ultimately negatively impact your business, so environmental CSR makes sense in a real way. However, it also makes economic sense.
Transitioning to sustainable options can require some large upfront costs, but sustainable systems tend to be cheaper to operate over the long run. As fuel and other inputs inevitably get more expensive, companies that transition away from costly technologies first will see the greatest financial advantage.
The Best of Both Worlds: Team Building and CSR Benefits
Now that you know the benefits of CSR for your organization, you’re probably wondering how exactly to incorporate its concepts into your business practices. TeamBonding has the expertise and the experience to accrue CSR benefits for your company. Here’s a shortlist of our most popular charitable CSR programs:
1. Charity Bike Build
For this CSR event, we partner with local children’s organizations to help build and donate bikes to children in need. Our charity bike build inspires people to work harder and more passionately than if they were just working for themselves. It’s a great opportunity to practice teamwork and collaboration with a clear positive goal in mind.
2. Cooking for a Cause
This fun corporate social responsibility activity is built around preparing and enjoying a meal with the rest of your team. But you also help your community in a meaningful way by creating welcome donations for a local food bank.
3. Paint Soles for Souls
Paint Soles for Souls is a fun team-building charity program that lets your team tap their inner artists while giving to kids who can really use your help. The results? Vibrantly colorful footwear, lots of appreciative feet, plus happier, more engaged employees. It’s always an uplifting experience for everyone.
Reap the Benefits of CSR with TeamBonding
In conclusion, corporate social responsibility is a crucial aspect of modern business and promotes long-term success. By implementing CSR initiatives, companies not only help build a better future, but enhance their reputation among both their consumers and employees. The benefits of corporate social responsibility are endless. If you’re interested in learning more about the benefits of CSR, check out our CSR page, or contact us today and we’ll be happy to answer all of your questions.
