Corporate Social Responsibility is a self-regulatory form of corporate conscience included into business models whereby it is guaranteed that the business is keenly accommodating with the force of law and ethical standards according to national and international norms. The term has been in use since the 1960s and maintained its usage extensively to shield legal and moral responsibility. Ever since its inception this sustainability strategy has been opted by companies to reflect their competitiveness. Their overall aim is to impact the society positively while get the most out of the creation of shared value for the shareholders, stakeholders and even employees. However CSR has two threads – the first type holding the common definition of CSR by the public in general. For example, companies providing funding for valuable social causes. The second type is more headed for laying down a real plan like employment creation and economic development through environmental initiatives, manufacturing products, using safe materials, etc. To site a bright example of this, we may bring in light the “cola wars” between Coke and Pepsi, one of the oldest rivalries in business. Both have a vigorous approach towards market share yet their CSR strategies are slightly different, if not all similar, like introduction of sustainable packaging as well as policy of zero net water usage.
Despite CSR’s capacity of fetching a lot to the corporate desk, a fair number of companies show high dissatisfaction towards this responsibility with some disclosing to have adopted CSR in the first place as marketing tactic and some, considering CSR as a coerced burden whose absence may have brought much more to the companies in the long run. Hence, to understand what importance CSR holds in today’s era and whether its graft is worth the outcome or not, we must look at some of the following points.
Advanced public image
Companies which are perceived as less self-regarding are actually favored by customers. It may be psychological but somehow people find companies with social responsibilities as more approachable. Sending out messages about your corporation’s philanthropic attitude will do good to design the public image as it reflects an empathetic side of the company. Corporations can do that by supporting nonprofit organizations or through donations.
Boosts Government relations
To be in the good books of politicians and government regulators, companies must present a positive public perception on its seriousness about social responsibility. This is not only the best way to make easier contacts with government officials but also to avoid various investigations and probes or even public campaigns.
Customer & employee engagement
It becomes easier to talk to customers or pursue them when you have a rather good message to share. When customers get interested eventually in your cause, they’re slowly going to believe the ambitions of your company. Obviously this is no maneuvering but with a little effort on social responsibilities, a company reaches more public in new ways than it might do without CSR. Likewise, today’s generation is ambitious and they’re in the constant lookout for being associated with companies that have a good public image and is always in the media for its positive decisions.
This is one of the reasons why companies from past incorporated CSR in the first place. But since it is a common phenomenon now, corporations are trying out new ways to build up their goodwill by experimenting on their social responsibilities. They’re not only taking it seriously but bringing in a lot of creativity so that they serve their visionary purpose along with creating a distinct image for themselves in the market.
Positive workplace environment
Corporations that care about the lives outside the barriers of their business kind of inspire and motivate employees to walk into work each day eagerly. This enhances the relationship between the highest management to the lowest paid workers as they go on to believe that a united approach could do wonders.
Along with these there are other advantages of establishing CSR like retaining investors who want to constantly know that their funds are being used properly, creating strong partnership between nonprofit organizations and companies and dig out the best of their workforce. With so many benefits and a vision to be a company that people look upon must be the ultimate goal of every corporation after all.