The Benefits of CSR

 

A well drafted and implemented CSR programme has the potential of providing the company immense benefits. It can also boost sales, improve employee satisfaction and reduce unnecessary spending. If a company is able to set its sights on the long-term, CSR becomes a very worthwhile investment.

 

Corporate Social Responsibility ( CSR) has grown to assume a  commanding presence in modern business. It is guiding the future of business around the world. With its spread and popularity the question frequently asked is: What are the advantages of CSR? Does CSR really help companies become sustainable and survive longer?  .

 Can CSR help a company’s bottom line, or will it simply drain funds which could be directed to other places? Luckily, for critics, corporate social responsibility has proved to be very efficient as a key performance indicator. It has proved that it can help build a long-term plan for success.

It needs to be noted that while CSR has a number of long-term there are short term costs which come with it. It now being realized that spending money on CSR results in less funds for other projects. While choosing between an opportunity and CSR, money may be lost in the short term if directed toward CSR operations.

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There is also the prospect that money spent to start CSR programmes  will not be recovered in the short-term. Such expenditure includes funds spent on technology and infrastructure needs required to implement a corporate social responsibility strategy. Long-term costs include the cost of training sessions, CSR professionals, or memberships to CSR-based organizations are constants which will have to be paid going forward. These investments without doubt make good in the long-term.

It would be wrong to think that CSR provides instant solution.  Corporate Social Responsibility, involves a lot of hard work and a strong commitment to bring about sustainable change in a company’s structure, vision and ethos. Though  CSR programmes involve sizable investments in the initial stage yet  as a company grows, CSR becomes very essential to help achieve a successful triple bottom line.

Often Corporate Social Responsibility is considered to be nothing more than a public image building exercise. There are positive indications to show it has tangible, long-lasting, financial benefits. Surveys have found that the proper CSR implementation programmes result in incredible gains.

It was observed that there was an increase of 20 percent in sales, 13 percent increase in productivity while employee turnover was reduced to half. These results are best case scenario, which reveal the power CSR to bring to a socially responsible business. Several other surveys have revealed similar positive trends of growth across companies covering all parts of the business.

CSR brings growth which is steady, long term and beneficial to the entire company. It adds value to the entire company, starting with an increase in the quality of products and employee productivity, to enhancing the company’s market value and long-term financial strength. With  CSR as the  main motivator in the decision making process, companies invest in the future and save money by adapting to new methods and technology early.

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Business is no longer limited to serve the interests of the shareholders only. Their survival heavily depends on the support they receive from the consumers which makes customers’ interests a top priority. The internet has made the consumer more alert and active. They now have the capacity to easily find a company’s CSR values and history. Very often their purchasing decisions off of what they uncover through the internet..

Recently a Public relations agency which conducted a survey covering about 10,000 consumers worldwide found that consumers respond strongly to purpose driven companies. It found that consumers would purchase four times more from a company which had a strong social purpose.   and 4.5 times more likely to champion the company and recommend it to friends and family.

While this indicates the consumer’s reaction to a purpose driven company it is interesting to understand the consumer’s reaction to companies holding opposite views to their own. A  study found that almost 80 percent  of  the consumers  refuse to purchase products from a company which supports an issue which is against their beliefs. Consumers are strong in their devotion   to the issues they believe in.

CSR walks companies into the future, by encouraging investment in new technologies and practices. It helps  to create shared value and raises standards of  products and increases employee productivity.

CSR is important and must be viewed as essential for in long-term business planning. To ignore CSR will not only negate its potential economic advantages. It will turn customer’s away thereby weakening brand image. Since people’s views of businesses, and the impact on social and environmental issues, is not likely to change anytime soon, companies to remain relevant and profitable must adapt to consumers’ interests

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Companies need to adopt a two pronged approach to reap maximum benefit from their Corporate Social Responsibility First it needs to brinjgt about a structural  shift from the inside out. A company must inform, retrain, and unify its workforce under its new goals, getting everyone to understand their place in CSR implementation. Externally, a company must reform its public image to reflect its new dedication to CSR, and clearly detail its goals and values.

Adopting a CSR program can intimidate businesses yet its benefits far outweigh the short-term setbacks. Business are no longer run on old established lines. These are changing and the future shows consumers asking more of the companies they patronize. Customers are using their money power to support larger issues they believe in. Companies have no alternative but to take Corporate Social Responsibility seriously and define the values they can offer the world. This is essential   to build customer loyalty