WHAT ARE THE BENEFITS OF CSR?

This week, a client expressed an interest in corporate social responsibility (CSR) and wanted a brief explanation of the practice. The following is a quick introduction into the benefits of CSR and how it is up to the leaders of the business to champion CSR efforts.

With more and more organisations incorporating CSR into their business strategy, it can be easy to see it as simply another box to tick or policy to adhere to. However, CSR is much more than a bake sale or a charity bike ride; rather, business leaders should start to think about how they can make a positive contribution to particular causes.

In its simplest form, CSR enables a business to fully embrace responsibility for the impact of their activities. Employees depend on you. Customers, suppliers and the local community are all affected by you and what you do. Your activities may have an environmental impact. There is a reason CSR is referred to as ‘responsible business’.

It boils down to this: CSR activities will depend on the organisation’s values – what is the organisation about? Who is it? And what does it stand for? It has been said that CSR allows stakeholders to see the ‘human’ side of your business. For this reason, business leaders are regularly placing themselves in the midst of their community, giving something back.

However, the practice is subject to much debate and criticism with many at loggerheads over CSR’s integrity. Some critics argue that it’s nothing more than superficial window-dressing whereas others believe it benefits organisations in many ways, allowing them to operate with a broader and longer perspective – CSR is not about short-term profits and gains.

That said, what are the benefits of CSR?
• Building a reputation as a responsible business sets you apart from others
• Increasingly, customers often favour and specifically choose suppliers which demonstrate responsible CSR, especially if their own reputation is at risk too!
• Some CSR activities, such as fundraising and volunteering, are ideal opportunities to generate positive PR and engagement with key online influencers
• It can reduce the risk of damage to reputation (and therefore sales!)
• Attracting and retaining a happy workforce as well as winning new business
• Reducing costs through energy saving programmes

If you would like to hear more about how leaders can integrate CSR into their business strategy, why not get in touch?