Corporate Social Responsibility (CSR) is more than just being a fancy corporate jargon for charity work. It’s relevant to all businesses – regardless of the scale, size, or industry.
If the concept is new to you, here’s everything you need to know about CSR and how socially responsible business practices benefit you and the environment.
What is corporate social responsibility?
Corporate social responsibility involves businesses taking responsibility for the economic, environmental and social implications of their operations. The aim is to hold organizations accountable and create a positive impact in society.
Companies embrace CSR by being eco-conscious and introducing or integrating environmentally friendly practices into their operations. They also promote diversity and inclusion in the workplace, and give back to their community.
But CSR has come a long way from being just a voluntary choice of companies to becoming required regulations at national and international levels. Despite this, businesses still choose to go beyond the legal requirements and make “doing good” a part of their business models.
Businesses practice CSR in many ways, but one thing is essential – for organizations to be perceived as genuine, their practices must be integrated into the company’s operations and culture.
We live in a socially conscious environment; customers and employees put a premium on spending and working for a business that prioritizes CSR. Hypocrisy has no place in this venture.
Why is CSR important for business?
Better customer perception
Customers, stakeholders and employees often prioritize CSR when choosing a company or brand. They also hold businesses accountable for effecting social change with their profits, practices and beliefs.
Your business must prove to the public that it is a force for good to gain a competitive advantage. Raising awareness and advocating for socially important causes is a good tactic to improve your customers’ perception of your brand.
Increased appeal to investors
A developed CSR program makes your business appealing to future and current investors. Just like customers, your investors will also hold you accountable when it comes to social responsibility. At the same time, businesses that take CSR seriously show partners and investors that it is interested in short-term and long-term gains.
CSR goes along with environmental, social and governance (ESG) metrics, which help analysts quantify an organization’s social efforts. This also becomes a deciding factor for an investor’s continued interest.
Better employee attraction and retention
A solid sustainability strategy is a crucial consideration for today’s top talents. Potential employees check the company’s personal ethics first before deciding if they should join or not. So work on your CSR now to attract top talent.
Famous corporate social responsibility Examples
Need some inspiration for your CSR journey? Here are some businesses that we can consider as successful corporate social responsibility examples:
Apart from being the biggest search engine online, Google takes a firm stand against social issues like racism and anti-semitism. Remember when its outspoken CEO, Sundar Pichai, rebuked Donald Trump for his anti-Muslim comments? With a CEO firm of his convictions, it made sense that the company would follow suit.
Google funds initiatives that drive inclusion in the company and community, especially in the following areas:
- LGBTQIA+ inclusion
- Gender equality
- Racial equity
- Disability inclusion
- Veteran inclusion
The company also offers tools to assist minority-owned businesses.
Pfizer
In 1953, the Pfizer Foundation was established to “build healthier communities around the world.” To achieve this goal, the pharmaceutical company supports safety net healthcare providers, funds community-based innovations, enables easier access to vaccines and promotes health equity.
Pfizer also offers financial grants. For example, when an earthquake struck Haiti in 201o, Pfizer granted financial support in cooperation with NGOs.
Pfizer’s Global Health Innovation Grants program funds 20 organizations at least $100,000 annually to address vaccine-preventable illnesses in their communities.
Canon
The photo company draws from its resources, such as advanced technological capabilities and specialized human resources to create activities that are tailored to address issues specific to the countries they operate in. They also reinvest business profit into local communities.
5 Corporate social responsibility initiatives on a budget
CSR is a good practice for any business, but small businesses hesitate because they worry about their budgets. Fortunately, a variety of CSR initiatives can help you do good on a budget.
1. Waste reduction and energy conservation
Implement energy-efficient technologies at your workplace. Doing so will lower your energy costs and reduce your carbon footprint. Simple steps like reducing water usage and switching to LED lighting are a good start. You can also promote composting and recycling programs to reduce waste and disposal costs.
2. Sustainable packaging and materials
Switch to eco-friendly product designs and packaging materials to minimize waste. Plenty of sustainable packaging options are more cost-efficient than traditional packaging materials. Moreover, they earn you a gold star with eco-conscious clients, which enhances your brand’s reputation.
3. Employee volunteer programs
Otherwise known as EVPs, these volunteer-centric programs are the most creative and effective CSR initiatives. From cleaning up a local beach to organizing a feeding program, the best EVPs encourage the team to engage with the community in a meaningful way.
These encourage employees to benefit from personal growth, job satisfaction, and a sense of purpose. As a result, the company also benefits from stronger employee loyalty.
4. Matching donations
Encourage charitable giving by matching employee donations to their preferred causes. This approach incentivizes employees to contribute while keeping your company’s contribution manageable.
5. Cause marketing
Partner with a non-profit for a campaign. Donate a portion of proceeds or co-host an event to raise awareness and funds for their cause. Cause marketing benefits the charity and gives your brand positive exposure.
CORPORATE SOCIAL RESPONSIBILITY is not a privilege exclusive to big enterprises. Even small businesses can take part in doing good for society. Consider your options for CSR initiatives, and make a difference in the world today.
