The Business Case

Spread the love

Business: Profit or Purpose?

To earn profit, a company is forced to care about society. It has to make high quality products or customers will stop buying. It has to treat its workers well or they will leave, and it cannot pollute the environment or its brand will be hurt.

The conventional wisdom is that business exists exclusively to earn profit but in actual sense profit is only a part of it. CSR agrees that business exists to serve a purpose, to create wealth by making products that transform customers' lives for the better, to provide employees with a healthy and enriching workplace and to preserve the environment for future generations.

Corporate social responsibility (CSR), a broad term used to describe a company’s efforts to improve society in some way, is undoubtedly an integral part of brand building. The role of ethics, environmental concern, and social responsibility provide critical components of an organization’s strategic planning. The concept of business serving society and at the same time balancing the financial interest of stockholders plays an important role in marketing a business in the current environment.

Corporate social responsibility is a concept that can take many forms depending on the company and industry. Through CSR programs, philanthropy, and volunteer efforts, businesses can benefit society while boosting their brands.

As important as CSR is for the community, it is equally valuable for a company. CSR activities can help forge a stronger bond between employees and corporations, boost morale and help both employees and employers feel more connected with the world around them.

Latest CSR Awards

LG Electronics Earns Leader Rating in Marriott Sustainability Assessment Program

LG Electronics has earned the highest-level rating in the 2020 Marriott Supplier Sustainability Assessment Program (MSAP), administered by MindClick.”

MetLife Earns 2021 Energy Star® Sustained Excellence Award

The Sustained Excellence award is the highest honor bestowed by the ENERGY STAR program to partners that have made a long-term commitment to fighting climate change and protecting public health through energy efficiency.

PayPal and CARE USA Honored With 'Golden Halos' for Best-in-Class Corporate Social Impact Efforts

This marks the 19th time the Golden Halo Awards have been presented to a business and a nonprofit for their outstanding achievements in the field of corporate social impact.

Why Use CSR?

Satisfied Customers

A strong record of CSR improves customers’ attitude towards the company. If a customer likes the company, he or she will buy more products or services and will be less willing to change to another brand.

Attract And Retain Talent

Because of the high positive impact of CSR on employee wellbeing and motivation, employees adopt a positive attitude towards the company, and are less likely to look for a job elsewhere. It is also likely that you will receive more job applications because people want to work for you.

Brand Value And Reputation

CSR provides the opportunity to share positive stories online and through traditional media. Companies no longer have to waste money on expensive advertising campaigns. Instead they generate free publicity and benefit from word-of-mouth marketing.

More Business Opportunities

A CSR program requires an open, outside oriented approach. The business as a result, is in a constant dialogue with customers, suppliers and other parties that affect the organization. Because of continuous interaction with other parties, your business will be the first to know about new business opportunities.

Improve Stock Prices

Potential investors also look into a company’s social responsibility, using it as one of their criteria in deciding whether to put money into the company or not. It is also instrumental in improving companies’ stock prices, since it inspires confidence among associates and business partners.

Lower Regulatory Oversight

A business with a good socially responsible reputation ultimately nets less government oversight than a company looking to shave the edges. This leads to a lower chance of expensive fines and sanctions by federal and state regulatory agencies. State and federal government officials may even seek out a company with a socially responsible reputation for opinions on shaping policy in the company's field.

Social Responsibility And Branding

How CSR Can Assist In Branding.

When we speak of branding for companies and businesses, the first thing that comes to mind involves the use of a logo, a tag line, and a name unique to that entity. After all, branding has one end goal: creating a differentiated name and image for a company, business, organization, product, or service.

Branding, in this context, involves using social responsibility to create that differentiation. Instead of a specific name or a logo, it uses an entity’s social responsibility program, which is demonstrated through various relevant actions. These actions will then establish the company’s presence in the minds of the consumers and the general public, as a whole.

Choose the right cause or advocacy.

You have to pick a specific social responsibility program. Do not be random about it. It has to be the right program for your business, and clearly aligned with your organizational vision and goals.

Create an authentic socially responsible mission

Avoid one-time events or annual donations. Genuine social responsibility is an ongoing process that starts from within and extends outward—if you are going to do it, do it right!.

Get everyone – including customers – involved.

Every member of the organization must be involved, since it also demonstrates a united front. Your employees may also turn out to be one of your best ambassadors, a declaration that was readily made even by Microsoft.

Use social media for your CSR efforts.

Social media accounts are the perfect avenues to share the company’s CSR stories. That way, even if the media is not able to cover it, there is still an effective way to let the public know about the company’s CSR efforts.

Thank you for reading!