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Social entrepreneur Dom Einhorn on why corporate social responsibility is becoming critical to CEOs

CEOs are turning towards CSR, not just to do good, but to drive growth and build a positive company image.

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Becoming a key player in various industries requires more than just superb marketing strategies and impressive revenue reports. Nowadays, it also means being aware and answering certain problems in communities through corporate social responsibility (CSR). As organizations take a wider view of their responsibilities to local communities, real opportunities are created, which benefit businesses as well as the customers, suppliers, and environments they interact with.

Major corporate entities can pose a huge impact on societies and the environment. Investopedia reports that the adverse effects brought by big businesses paved the way for the corporate culture to embrace the idea of balancing the pursuit of profit and being able to become responsible and committed to ethical conduct; thus, CSR was born. Stakeholder theory has been instrumental in driving the shift towards corporate social responsibility.

However, CSR does more than just provide an outlet for companies to showcase proper ethics. At its core, CSR gives companies better brand recognition through the positive work or projects they hold in communities. This gives the audience and potential clients a great outlook on the company as they are not only able to perform at their peak on their respective industries but also manages to give back to the community.

The improved brand recognition goes a long way—it can boost the company’s sales and loyal customer base. A research from Double The Donation suggests that 55 percent of customers are willing to spend money on companies who are socially responsible. These customers believe that by being loyal customers of the brand, they are able to actively participate in the cause that the company is trying to support.

This boost in customer retention is best complemented by strong media coverage mostly given to CSR-focused events. The extra coverage and the outpour of a supportive customer base allow companies to gain more popularity in today’s competitive marketing world. Truly, CSR programs are basically a marketing strategy in itself.

XPO2 and Diamond CBD t-shirts

Mutahi Munyi, XPO2 Ambassador (Nairobi, Kenya) along with a local representative of Diamond CBD.

Ni Business Info adds that socially responsible corporations are also able to gain access to extra financing. Businesses with a good reputation are more likely to attract investors as they pose the most room for growth. A strong investment portfolio is always great for companies since they’ll be able to identify new business opportunities and new avenues for the development of their product or service.

The positive effects of corporate social responsibility also extend to the internal growth of a company. Charity drives and other socially responsible projects can also build a better rapport between CEOs and their employees. Once employees see that they are working for a company that gives as much as it receives, they will be able to develop more loyalty and a better rapport with management.

CSR programs are being viewed in a more positive light by many CEOs, thanks to its numerous benefits to companies. By focusing on a certain cause, corporate entities are able to establish better relations with their audience and investors, thus boosting their room for growth substantially. According to The Huffington Post, 64 percent of CEOs in 2016 increased the funds they directed towards CSR.

CBD leader, white-label service partner for disadvantaged communities

It is no surprise that an increasing number of ventures and firms in various fields are making significant moves in the field of CSR. One of the industries taking its steps toward the corporate practice is the cannabidiol (CBD) industry. Cannabis plant and CBD-based products are a steady growing market with total revenues expected to be at $2.1 billion by 2021. Behind this unprecedented growth are a few companies that have been breaking revenue records time and again by leveraging on the popularity of cannabidiol and its numerous health benefits. These same companies are looking to reciprocate the heavy downpour of support by adopting CSRs into their structures.

Take, for instance, PotNetwork Holding, Inc. (OTCMKTS:POTN) and its subsidiary, Diamond CBD, Inc. The company had an impressive 2017 market performance, and since then, it has been on a tear. Diamond CBD had a successful first quarter this year as it broke revenue records again—it was able to generate $2 million in sales in February alone. Its stellar performance is the result of the company’s efforts to provide the purest hemp extracts and high-quality CBD-infused products, including pet foods, vape oils, crystal dabs, edibles, and supplements.

The profit acquired from its endless stream of customers is not only being used for the research and development of better product offerings. The CBD-industry leader is also taking steps to give back and help disadvantaged communities.

Early in March, PotNetwork’s Diamond CBD held its first charity drive. The event extended a helping hand to more than 100 at-risk youth and children in a disadvantaged area in the Philippines.

Through the event, Diamond CBD provided hundreds of necessities, including canned goods, milk, biscuits, rice, and more. Additionally, the company also handed out soaps, shirts, and other clothing items for the children in the Our Lady of Lourdes Chapel located in the town of San Mateo, Rizal. But this is just the beginning.

Now, the companies are already planning other high impact charity drives not only in Asia but also in other parts of the world such as Africa.

(Featured image: Truyen Tinh orphanage, Saigon, Vietnam. Photo by Tung Nguyen. All rights reserved)

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This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

Desmond O’Flynn is Irish but he’s not into boxing. He writes about finance and investing, as well as world politics and global economy. He used to believe that he didn’t have the luck of the Irish since he failed his art class thrice, but this immediately changed after meeting his wife Katarina, a startup interior design consultant based in Dublin. He is also a financial adviser.

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