Corporate social responsibility is gaining greater recognition in mainstream media. It bolsters profits and gives back to the community at large. It not only contributes to our economy—it contributes to our community. Also known as corporate citizenship, it could quite seriously change the world in a matter of decades, not generations, and private citizens across the world recognize this.
In previous years, it was very difficult to analyze the benefits of corporate social responsibility. Now, however, a recent study, “Corporate Social Responsibility and Financial Performance: A Meta-Analysis” has collected data from 52 previous studies and authoritatively concluded “corporate virtue in the form of social responsibility and, to a less extent, environmental responsibility, is likely to pay off.”
By implementing employer volunteer initiatives, organizations build trust among employees inside their company and encourage consumers outside their company to place faith in their brand. They are giving back while seeing an economic return at the same time. In this light, I listed below a few key pieces of advice entrepreneurs use to increase corporate social responsibility:
Purchase Sustainable Goods
Intentionally seek out goods that are good for the environment. Even if they are slightly more expensive at first, you will see returns in customer retention, customer acquisition, and employee loyalty that more than make up for it. Globally aware citizens appreciate proactive companies that take the extra step to preserve our planet, and they do what they can to support them.
In particular, with regards to today’s changing workplace, there is considerable evidence suggesting that Millennials want a company whose goals align with their own. This applies to both consumers and workers, and companies would do well to keep it in mind.
Keep the doors open both internally and externally. Foster an open dialogue with stakeholders and clients and take into account their passions for various nonprofits and act accordingly. To streamline internal communication, be relevant, insightful, and succinct.
Develop a truly transparent relationship with board members so that when capital is needed, they see it coming; and when said capital can help tremendously but isn’t necessary, stakeholders will oblige anyway. Articulate why particular initiatives benefit both the community and the office. Stakeholders will appreciate the goodwill and reciprocate in kind.
By maintaining communication with the local community and giving back to the surrounding area, your brand will build a reputation for trustworthiness that is nearly nonexistent today given the hostility that has arisen between consumers and corporate America. Local legislators and consumers will notice what companies are supporting public initiatives, and will be more inclined to embrace contributing businesses as a result. There are few things more significant than reputation and positive word-of-mouth, and giving back to the community accomplishes both.
The results are in: corporate social responsibility gives back, and it’s the duty of thriving businesses to capitalize appropriately.