The concept of corporate social responsibility is based on three aspects that serve as it’s three pillars: economic, social and environmental responsibilities. For a company to successfully practice CSR, there should be policies and procedures in place, which integrate the economic, social and environmental concerns into the business operations.
Importance of Corporate Social Responsibility
There are multiple reasons why a company should put CSR at the heart of their business:
- More Efficient Use of Resources – It pays to be socially, economically and environmentally responsible. When a company is conscious of their footprint, they reap the rewards as they become more efficient in their use of resources.
- Reputation Management – A company’s CSR programmes can directly affect their public image. While a positive public response can help build a stellar reputation, a negative response can be detrimental to the consumer’s perception and trust in the brand. Therefore, it is important for a business to invest time and resources into their CSR policy to order to aid their reputation.
- Millennial Demand – Millennials, and even more so Generation Z care about a company’s CSR program more than any other generation of consumers. Studies have shown that these consumers, who have the highest purchasing power, will spend more money on brands that engage in CSR initiatives and brands that support causes they care about. In this digital age where these consumers tend to voice their opinions across social channels, the need for superior CSR programmes has become a necessity.
- Employee Satisfaction – Investing in CSR means investing in your employee workplace and their satisfaction. Professionals are increasingly seeking to be employed by companies who care about them and other social issues, and as a result, successful CSR tends to attract and retain high quality employees. This investment in building a positive workplace environment leads to employee satisfaction, which in turn results in a higher level of employee engagement.
- Enhanced Customer Loyalty – Increased employee engagement leads to a higher level of customer service which in turn results in a better customer experience. An individuals experience with a brand is directly linked with customer loyalty, and so investing in CSR can help improve customer loyalty.
- Attracts Investors – Responsible companies attract and help retain investors as investors themselves are becoming increasingly more interested in a company’s corporate social responsibility performance. Investors are looking past financial results and want to see the practical impact social responsibility has on a firms’ performance.
A company’s efficient use of resources, good public image, high rates of employee engagement, enhanced customer loyalty and backing from investors will result in the company having an overall improved better line, helping their long-term sustainability.
Here at Entrepreneurs Academy, we strongly believe in Corporate Social Responsibility and understand the requirement for it to be part of our core strategy. Our CSR policy and procedures represent who we are as a company, and the values we believe in. We operate with the end goal of creating shared value, we want to maximise the positive impact we can have on society while at the same time maximising the creation of shared value for the business, our employees, and our stakeholders.