Gone are the days when corporate social responsibility (CSR) was a lesser-known subject, and businesses only focused on profit-making. In the contemporary business landscape, many countries globally have mandated the concept of CSR spending as a part of the corporate law framework. At the same time, others are still focusing on bolstering corporate social responsibility to build a sustainable and prosperous future. That’s why corporations can no longer get away with ignoring corporate social responsibility.
As corporations have a platform that allows them to provide the totality of their technology and resources, they can make a meaningful contribution to the community. The attitude towards CSR has undergone a subtle but definitive shift in the past couple of years. Today, a considerable number of enterprises globally are adopting social responsibility as an integral part of their corporate values.
Corporate social responsibility’s positive outcomes encourage corporations and other small business organizations to embrace this philanthropic act to give back to the community. Read on to discover the importance of corporate social responsibility in business.
Importance of CSR in business
Although corporate social responsibility is still not a legal requirement in many countries, taking it up can definitely make a huge difference on the brand image. Thus, a company must operate in a way that exhibits social responsibility to succeed.
According to the 2019 AFLAC CSR survey, 77 percent of consumers consider purchasing products from companies committed to improving the world. The report further states that about 55 percent of consumers believe it is essential for firms to resolve social, environmental, and political issues. This is how CSR is directly associated with brand image and success.
Benefits of adopting CSR in business
Organizations practicing CSR aim to enhance their communities, politics, environment, and economy. Here’s how CSR is significantly contributing to helping businesses thrive:
Improve brand image
Brand image is the perception a company creates in the mind of customers. Businesses have to make efforts to maintain a positive brand image that evolves with time. A business doesn’t need its customers to purchase a product to build a brand image. On the contrary, customers prefer to buy goods and services from a company with a good brand image.
CSR helps manage corporate risk for global companies by providing intelligence about threats and offering effective means to respond to them. It is essential in managing stakeholder relationships.
Build customer loyalty
As customers consider those companies that contribute to making the world a better place, CSR campaigns are essential to creating customer loyalty. Many established brands like Microsoft, Google, and Starbucks engage in CSR activities.
Increase brand awareness
Customers are key to enhanced future profits and goodwill. CSR activities help businesses increase their reputation by earning the audience’s attention. Committing to ethical practices also leads to increased brand awareness.
Need a course?
Top universities in Canada offer corporate social responsibility courses that aim to help prospective professionals understand how they can build effective corporate strategies to impact society, the environment, and business positively. Students will also learn about the tools essential to developing inspiring initiatives and promoting them. Interested students can also apply online. Browse now!