With the increasing awareness and education level among the different consumers related to social issues like global warming, unethical labor practices poverty etc. the business also requires to devote greater degree of attention towards CSR.
In today’s rising age of social media-oriented world, companies with unethical business practices are exposed harshly on social media which deteriorates the image badly. Alternatively, companies implementing CSR in order to fight against social causes and uplifting the society can lead to increased sales and positive publicity.
How implementation of CSR improves business effectiveness
IMPROVED PUBLIC IMAGE
Companies that demonstrate Corporate Social Responsibility are gaining exposure and praise for their involvement. Consumers feel a sense of satisfaction and happiness when they buy product and services from the companies that are helping to uplift the community. Greater degree of involvement in CSR activities will make the company more favorable to consumers.
AN EDGE OVER COMPETITION
With the cut throat competition in every industry, embracing CSR can give an edge over the competitor and thus can take company one step further. We can establish a company who is committed to the responsibility of upliftment of the community by considering social and environmental factors.
INCREASED CUSTOMER LOYALTY
Customers are more likely to be loyal to the brand if corporate values align with their personal ones. A robust CSR framework helps companies to build trust between the companies and customers. It can strengthen relationships, form alliances and develop strong working relationships with existing and new customers.
CSR initiatives encourage the employees to try new things and get re-energized about their jobs which will help companies to enhance creativity and innovation and enable the employees to think out of box.
GREATER EMPLOYEE ENGAGEMENT
Similar to employee engagement, companies also need to ensure that employees know the company’s strategy. It has been proven that employees enjoy working more for a company that has a good public image than one who does not. Also, committing to things like human rights can help to attract and retain the top candidates.
CSR is a Win/Win, as it helps in an upliftment of the community & fulfilling the societal needs as well as promoting companies’ growth in terms of increased sale, brand loyalty etc.
-Rahul Sharma, Associate, ShineWing India