In the world of business, shareholders ‘returns on financial bottom line and investment have long been key drivers of measuring companies’ success. In the 1950s and 1960s, the idea of corporate social responsibility and corporate citizenship emerged as an alternative priority for organizations to consider.
Corporate social responsibility is about an organization that is responsible for the impacts of its decisions and operations on all aspects of society, society and the environment. Corporate social responsibility is more than just donating money or printing double pages to save trees, it also contributes to the health and well-being of the community, acting transparently and ethically. Most importantly, this operational pathway must be embedded in the business.
In our view, embedding corporate social responsibility is not a brain. Here are our top five reasons:
Positive impact on the community
Keeping social responsibility in mind encourages businesses to act ethically and consider the social and environmental impacts of their business. In doing so, companies can avoid or minimize the harmful effects of their business on the community. In some cases, companies will find ways to make changes to their services or they may not make it to the value chain that benefits the community.
Supports public value outcomes
Simply put, public value is about the value that an organization contributes to society. An effective, robust corporate social responsibility framework and corporate mindset can truly help companies deliver public value results by focusing on how their services can make a difference in the community. This can happen indirectly, where one company’s services help others contribute to the community, or directly through the company’s own activities, such as volunteering and philanthropy.
Supports being an employer
Being a preferred employer usually refers to the company’s ability to attract and retain high-skilled employees. There are ways to approach being a preferred employer, including work-life balance, positive working conditions and workplace flexibility. Studies show that a strong corporate social responsibility framework can also help a company to become more attractive to prospective employees looking for workplaces with socially responsible practices, social attitudes and sound ethics.
Promotes professional and personal growth
Giving employees the opportunity to engage in a company’s socially responsible activities may benefit from teaching employees new skills that can be used in the workplace. By taking actions outside of their regular work responsibilities, employees have the opportunity to contribute to the work, the reasons they feel passionate, or learn something completely new to help enrich their own perspectives. By supporting these activities, organizations promote employee growth and support.
Enhances relationships with customers
A robust corporate social responsibility framework is essential for building and maintaining trust between the company and customers. It can strengthen relationships, form alliances and develop strong working relationships with existing and new customers. One way to achieve this is by offering pro-bono or similar services, where a company can partner with for-profit organizations to support their public value outcomes, which may have little or no resources. This, in turn, helps to deliver results that are not otherwise provided.