What is Corporate Social Responsibility?
Corporate social responsibility (CSR) is a broad term used to describe a company’s efforts to improve society in some way.
These efforts can range from donating money to nonprofits to implementing environmentally-friendly policies in the workplace.
CSR is important for companies, nonprofits, and employees alike.
Corporate social responsibility is not a mandated practice in the United States; instead, it is something extra that companies do to improve their local and global communities.
How Corporations Benefit from Corporate Social Responsibility
- Improves Public Image
Companies that demonstrate their commitment to various causes are perceived as more philanthropic than companies whose corporate social responsibility endeavors are nonexistent.
A corporation’s public image is at the mercy of its social responsibility programs and how aware consumers are of these programs.
Remember, consumers feel good shopping at institutions that help the community. Clean up your public image (and broadcast it to the world!).
Corporations can improve their public image by supporting nonprofits through monetary donations, volunteerism, in-kind donations of products and services, and strong partnerships.
By publicizing their efforts and letting the general public know about their philanthropy, companies increase their chances of becoming favorable in the eyes of consumers.
Takeaway: Positive social responsibility improves a company’s public image and relationship with consumers.
- Increases Media Coverage
It doesn’t matter how much your company is doing to save the environment if nobody knows about it.
Make sure you’re forming relationships with local media outlets so they’ll be more likely to cover the stories you offer them.
How much good a company can do in its local communities, or even beyond that, is corporate social responsibility. And the better the benefits, the better the media coverage.
On the other hand, if a corporation participates in production or activities that bring upon negative community impacts, the media will also pick this up. Unfortunately, bad news spreads quicker than good news.
Media visibility is only so useful in that it sheds a positive light on your organization.
Takeaway: Having a strong CSR program can increase the chances that your company gets news coverage.
- Boosts Employee Engagement
Employees like working for a company that has a good public image and is constantly in the media for positive reasons.
Happy employees almost always equal better output.
Nearly 60% of employees who are proud of their company’s social responsibility are engaged at their jobs.
When companies show that they are dedicated to improving their communities through corporate giving programs (like matching gifts and volunteer grants!), they are more likely to attract and retain valuable, hardworking, and engaged employees.
If a corporation is philanthropically minded, job-hunting individuals are more likely to apply and interview for available positions. Once hired, employees who are engaged will stay with a company longer, be more productive on a daily basis, and will be more creative than disengaged workers.
Takeaway: Corporate social responsibility helps attract and retain engaged and productive employees.
- Attracts & Retains Investors
Investors who are pouring money into companies want to know that their funds are being used properly.
Not only does this mean that corporations must have sound business plans and budgets, but it also means that they should have a strong sense of corporate social responsibility.
When companies donate money to nonprofit organizations and encourage their employees to volunteer their time, they demonstrate to investors that they don’t just care about profits.
Instead, they show that they have an interest in the local and global community.
Investors are more likely to be attracted to and continue to support companies that demonstrate a commitment not only to employees and customers, but also to causes and organizations that impact the lives of others.
Takeaway: Investors care about corporate social responsibility and so should companies.
11th Annual Pack A Purse™ Drive
Collection: November 1, 2017 – December 4, 2017
Purse Packing Party: Saturday, December 9, 2017
Article originally appeared on Double the Donation LLC.