Corporate Social Responsibility (CSR) is a hot topic and there are some large companies who are leading the way, however, you don’t have to be a large company to be socially accountable.
First things first, what is CSR?
To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them.
CSR is mostly associated with larger companies, these companies are more high profile and attract a lot more attention, therefore, they want to ensure they protect and enhance their reputations with the public as well as their key stakeholders.
However, just because they might have better resources or capable of investing more money doesn’t mean that CSR is only fit for them. CSR is important for small and medium-sized companies as well. Yes they are smaller, however, the question should not be whether they should or not but rather why they should and how they can become more socially accountable.
SMEs have many of the same reasons for engaging in CSR that large companies have and in many cases, they may also be more intrinsically, if not better motivated, to give CSR attention.
Embracing socially responsible policies goes a long way towards attracting and retaining customers, which is essential to a company’s long-term success. Furthermore, many individuals will gladly pay a premium for goods, knowing that part of the profits will be channelled towards social causes near and dear to them.
Companies can likewise witness increased foot traffic if they enhance the local community.
Points to remember:
- Being a socially responsible company can improve a company’s image and build its brand.
- Social responsibility empowers employees to leverage the corporate resources at their disposal to do good.
- Formal corporate social responsibility programs can boost employee morale and lead to greater productivity in the workforce.
Socially responsible companies cultivate positive brand recognition, increase customer loyalty, and attract top-tier employees. These elements among the keys to achieving increased profitability and long-term financial success.