Benefits of Indulging in CSR Activity
Corporate Social Responsibility (CSR) is the idea that business needs to consider the social and environmental impact of its decisions. The aim of CSR is to conduct business activities in such a manner that it has a positive effect on the society. It is the obligation of business to all its stakeholders including customers, employees, shareholders, suppliers and so on, to act in an ethical and responsible manner.
While it is inevitable to generate profit, acting in a fair and responsible manner to all its stakeholders is essential for the long-term survival of the business. People are concerned with associating themselves with brands that do good for the betterment of society. It helps in attracting and retaining customers, employees and shareholders. Your brand will have a good reputation in the market by indulging in CSR activities. Unlike legal policies corporate social responsibility activities are voluntary in nature. Your business needs to frame CSR policies strategically in such a manner that it best reflects the value of your organisation. The list of CSR activities your business needs to indulge in has to support your business goals and strategies.
Type of CSR activities
There are four main types of corporate social responsibility activities-
● Environmental CSR – It is the belief that business needs to make decisions as environmentally friendly as possible. It is sometimes referred to as ‘ environmental stewardship’. Planting trees and using renewable resources are examples of environmental CSR.
● Ethical CSR – Ethical CSR is the practice of conducting business in a fair and ethical manner to all its stakeholders. For example- sourcing raw materials in accordance to free trade standards.
● Philanthropic CSR – Firms go beyond environmental and ethical CSR while practising philanthropic CSR. They aim to make the world and the society they live in a better place. Doing charity work and donating to nonprofit organisations are part of philanthropic CSR.
● Economic CSR – It is the commitment of business in not only maximising profit but doing good in all areas as mentioned above. The business makes financial decisions that positively impacts people, society and the environment.
Benefits of CSR
Increased brand recognition
When you associate your brand with positive stories and actions people will have a positive perception of your brand. This will help in increasing brand recognition and the reputation of your business will be boosted.
Better customer loyalty
People have strong trust associated with those brands that do good for society. By supporting community initiatives you prove that you are doing business not just for monetary reasons. This will also help in building better customer loyalty.
Increased employee retention
Studies show that people feel good working in a socially responsible organisation. They like to associate themselves with an organisation that has a good reputation. People have better job satisfaction and motivation working in an organisation that cares for the welfare of its stakeholders.
Increased employee engagement
CSR activities provide volunteering opportunities to employees. This further encourages and engages them with working in the organisation. Engaged employees are more productive and thus enhances the profit of the business.
Drive-in more investment
When your business does an active part in betterment of the society it not only influences the customers and employees but it also has a positive impact on potential investors. Knowing that your firm has a good reputation, more and more investors will be drawn to your business.
List of CSR activities
CSR can be a win-win strategy for your business by creating CSR plans aligned with your business goals and growth strategies. You can see a list of CSR activities given below.
● Better labour policies
● Conducting fairtrade
● Equity, diversity and inclusion
● Volunteering activities
● Better environmental policies
● Socially conscious investments
● Promoting education
● Improve quality of life of communities
A Final Note
Corporate social responsibility is the obligation of organisations to conduct business in such a manner that it has a positive impact on the society. CSR is essential for the sustainability of your business. People tend to prefer brands that act in a conscious and responsible manner for society. By investing your time and resources in CSR activities your business will flourish in the long-term.
By choosing the right corporate social responsibility activities that strategically reflects what your brand is and aligns with core-value of your business you can build a successful CSR policy for your business.