Corporate social responsibility is a broad idea that can take many forms depending on the company and industry. By CSR programs, philanthropy, and volunteer efforts, businesses can benefit society while boosting their own brands. As mandatory as CSR is for the community, it is equally valuable for a company. Corporate Social Responsibility activities can help forge a stronger bond between employee and corporation; they can boost morale and can help both employees and employers feel more connected to the world around them.
CSR is a self-regulating business model that helps a company be socially accountable — to itself, its stakeholders, and the public. By doing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society including economic, social, and environmental. To engage in CSR means that, in the normal course of business, a company is working in ways that enhance society and the environment, instead of contributing negatively to it.
What advantages Does CSR Offer to Businesses?
Both e-commerce and brick-and-mortar businesses stand to advantage from the implementation of CSR strategies. Some tasks that fall under the umbrella of CSR, with their corresponding benefits, covers:
- Avoid financial ramifications: Compliance with the spirit and letter of the law — both nationally and internationally — through self-regulatory processes will prevent fines, put your business “low on regulators’ radar screens,” and lower legal expenses.
- Scale up employee loyalty: Treating your employees fairly and generously is a part of the corporate social responsibility. By providing better jobs and encouraging high professional and moral standards, you increase employee loyalty, and by procuring only those overseas products produced at factories where workers were treated ethically, you gain support among “Fair Trade” advocates.
- Organizing a positive reputation: Demonstrated consciousness in a varied of areas can garner publicity and give a business tangible proof of their conduct, which can be proudly displayed on a company website. These include:
- Environmental consciousness: Decreasing waste, recycling, minimizing carbon footprint, and other best practices can. Making use of or producing only sustainable products, lowering energy usage, and supporting environmental causes will boost a business’s “green reputation” among environmentally concerned clients.
- Social Concern: Donating to humanitarian causes that fight persistent poverty, aid to the victims of epidemics like AIDS or Ebola, or assist those displaced by hurricanes or earthquakes shows concern for issues that consumers are more and more aware of in our modern, interconnected world.
- Local Community: Involvement in local community projects, either by financial donations, employee participation, connecting your customers with project leaders, or promotion of the project through advertising and fundraising enhances your CSR credentials with clients in the given location.