Why corporate social responsibility matters
Corporate social responsibility (CSR) is a crucial aspect of business operations that involves taking responsibility for the impact a company has on society. It is more than just charity work, it is a comprehensive approach that incorporates ethical, environmental and social considerations into the company's operations and decision-making.
CSR matters because it can help a company build a positive reputation, improve employee engagement, attract and retain customers and investors, and even boost financial performance. CSR is also becoming increasingly important to meet the expectations of stakeholders, such as customers, employees, and regulators, who are increasingly demanding that companies operate in a responsible and sustainable way.
As more and more young people enter the workforce, they are choosing to work for businesses that have demonstrated their ability to be good corporate citizens.
Customers have also said that they are more likely to support businesses that are sustainable.
In a hurry?
Click on the link below to go directly to what you’re most interested in:
- Help achieve a company’s ESG Goals
- Improve your workplace culture
- Increase customer engagement
- Build an innovative brand
1. Help achieve a company's ESG goals
The relationship between CSR and a company's environmental, social, and governance (ESG) goals are closely linked. CSR initiatives can help a company achieve its ESG goals by reducing its negative impact on the environment, improving working conditions and supporting local communities.
ESG reporting is also a way for companies to communicate their CSR and sustainability performance to stakeholders. Companies that have clear, measurable ESG goals, and communicate progress toward them, are increasingly seen as better corporate citizens and a more sustainable investment.
2. Improve your workplace culture
An effective way to boost workplace morale is to create a work environment where employees can flourish and produce their best work. You can achieve this by deciding to support a deserving cause, which will give your employees a feeling of purpose and belonging and prevent them from viewing their work as merely a 9–5 office grind they must endure in order to go out and live their true lives.
Their time spent working for your business will grow to be one of their favourite parts of the day, which will motivate them to give their best efforts and stick with your organisation.
Furthermore, it’s important to make sure you’re engaging with your employees by providing a welcoming and caring workplace to reduce employee turnover and keep them on board for longer. The cost of employee turnover is roughly 21 percent of their annual salary making it highly economical to focus on boosting workplace culture.
Through participating in activities like community fundraising, your business can help your employees get along in and outside of the office and demonstrate to them your concern for social issues and willingness to support deserving organisations.
Photo credit: Michael Amendolia
3. Increase customer engagement
By giving back to your local community, you can easily promote your business and get the word out about your products or services. By partnering with a charity to sponsor an event or give back a small percentage of every sale, you can expose your business to supporters of that charity.
Customers often have a personal interest in supporting the needs of their own community. By creating and maintaining goodwill within the community by giving back you can give them a reason to trust and be loyal to your company.
As an added bonus, customers often believe that products they are purchasing are of better quality when the brand can demonstrate social responsibility.
When you’re giving back, you’re receiving customer loyalty and support.
4. Build an innovative brand
They want to see businesses be innovative with the ways that they approach social corporate responsibility. Innovation in corporate social responsibility is expected to go beyond occasionally donating to charity or purchasing environmental benefits like carbon offsets.
By being creative with how your business will shrink its carbon footprint or supporting local communities, you can build a brand that is known for its ambitious approach to sustainability.
Photo credit: The Fred Hollows Foundation
Get involved with fundraising activities
Become a corporate partner
As a business, you can fulfil your corporate social responsibility by joining forces with a charitable organisation like The Fred Hollows Foundation.
Is your business interested in becoming a corporate partner? Find out more.
Workplace Giving allows employees to make small, regular donations to organisations like The Fred Hollows Foundation directly from your pre-tax pay. It is a simple, low cost and effective way to help us restore sight and end avoidable blindness.
For more information about setting up a Workplace Giving program, you can get in touch with us.
Hao two years after his successful cataract operation supported by The Fred Hollows Foundation.
Photo credit: The Fred Hollows Foundation
COVER PHOTO: The Fred Hollows Foundation
Meet the author
Related articles
Corporate giving: What is it and why is it so important?
L'OCCITANE Improving Equity in Eye Care
