If you re in business, your reputation and actions are of paramount importance. As a business entity you have to make sure that your actions have a positive impact on society and the environment. This is a huge responsibility. Businesses that are only profit driven display no sense of responsibility for the proper development of society, and hence lose out on their brand recall, customers and well wishers.
No employee or shareholder would like to be associated with a business that does not show legal, legitimate and decent ways of making money. That is where CSR or corporate social responsibility comes in. Companies with an active CSR also play a major role in the development of the land by donating to charities and uplifting the lesser fortunate populace.
What sets them apart?
Socially responsible organizations make profit in a way that doesn t harm the social and environmental fabric of the country they operate in. Human beings are also first on their list of concerns. Generally, socially responsible companies have very high employee satisfaction and motivation levels.
When, as a stakeholder, you are associated with such a company you can feel safe that they will associate only with genuine companies and source goods, services and people in a legal and ethical way.
Benefits of CSR
Though it might appear contradictory, but CSR actually lowers the cost to companies in the long run. If you have to pay lesser for basic amenities like power and water, chances are that your bottom-line will improve.
Companies that exhibit CSR have a better reputation, which means that there is a positive image of the company in the public s eyes that converts into customer loyalty. Employees who view companies as ethical will be highly motivated to work for the company.
Consumers want to support companies who are doing the right, legal and ethical thing. So, if you invest in CSR, it s a step further for your company s image. Moreover, companies that possess CSR are more likely to sell their wares and services than those that are only profit oriented.
Employees of companies that have a robust CSR program are more likely to be motivated. New recruits will also prefer to work for a company that has a CSR plan. A company with CSR has the overall growth of its employees in mind and takes active interest in the careers, safety and growth of its employees.
Companies that have CSR will attract more and more investors, thereby increasing the business access to capital. Reputation is of utmost importance for investors who want to invest in any company.
A better reputation means better public perception
A company with CSR has an independent, fair, environmentally savvy, and impeccable reputation. Such a brand goes a long way in dealing with corruption and in case the company has to rebuild its reputation. So, if companies want to increase their bottomline, the best way out is to invest in a CSR program. Though some of these factors may be intangible, the fact remains that all the above mentioned factors contribute to the well- being and financial stability of the company.