Boost Your Business Via Social Responsibility

By Sebastian Troup


It may truly be challenging for companies these days to make changes in the business in order to shift to a more socially and environmentally responsible kind when doing more with less is often expected. However still many resolve to do "good" and be proud of it in the workplace as return on the investment becomes visible. In truth, social responsibility adds to the company's result thus cause the difference in the community.

To adhere to the ethical and legal standards beyond the company's operations is what defines CSR or Corporate Social Responsibility. Herein you need to promote and support causes locally, nationally and even globally. Corporate philanthropy is a means by which this is achieved such as company donations to charitable causes.

If your company has a well-designed and accurately executed "giving program" you can have the competitive advantage through:

Improving name recognition Boosting brand reputation among consumers Increasing sales and positive consumer sentiment Assisting in efforts to recruit and retain talented employees for your company Improving the quality of life in communities where you do business

Research shows more consumers are basing their buying decisions on corporate social responsibility. A study earlier this year by public relations and marketing firm Cone Communications and Echo Research revealed 90 percent of shoppers worldwide are likely to switch to brands that support a good cause, given similar price and quality. The study also shows businesses that aren't socially responsible run the risk of losing customers. Again, 90 percent of the shoppers surveyed would boycott companies if they found the firms engaged in irresponsible business practices.

This study is just the latest that shows companies should care about social responsibility because their customers do. It's no longer enough just to sell a good product or service. Consumers are expecting more from businesses, including real, meaningful social impact. It appears business owners are listening to these demands. Rather than tacking philanthropy onto the Public Relations department as an afterthought, more companies are trying to integrate corporate social responsibility throughout all of their operations. That commitment is showing through in the kind of jobs provided, kinds of products made, and the ways in which resources are used.

You see, CSR these days are looked at by companies as long-term investment rather than mere marketing moves. Coca-Cola in its 5 x 20 program presents a clear example where it aims to give opportunities to five million women in the developing world to become local bottlers and distributors of Coca-Cola products by 2020. These young women entrepreneurs are being empowered to act as investments as they can generate more sales after gaining them as additional bottlers capable of selling more products. This move will also cause better-educated people to become apparent and eventually turn communities in need of help into more prosperous ones.

Some companies view CSR as their passport to savings. Take energy efficiency as a good illustration. With Wal-Mart's social responsibility policy, they aim to achieve three goals: that ability to gain a good supply of renewable energy, to establish zero waste, and to market no less than products which are sustaining to people and the environment. Though quite lofty, these goals will definitely help the company save money.




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