In reality, every business seeks to maximize the biggest profit possible, and corporate social responsibility (CSR), with all of its social and ecological reservations, seems to contradict this logic by seeking to take away some of the company’s resources and utilizing it in less profitable ventures.
At least, that’s what any uninformed individual in the business world might say. The truth, however, is the opposite, and in today’s day and age, if done properly, CSR can do more good than harm, if any.
In fact, it brings in many unexpected benefits, and it is more than just a passing trend, especially among young adults. These young adults today, more commonly known as millennials, are currently the biggest working demographic, per Census Bureau, and they are now pushing for companies to integrate CSR into each one of their mission and practices.
If observed, it’s easy to see why millennials are acting this way. Raised in a time of economic turmoil, this generation wants long-lasting change.
As a result, socially responsible corporate practices are all the rage nowadays, bringing with it benefits that help not just the communities around it but also the companies that do it. Here are some of more common examples:
1. It supports public value outcomes.
Quite simply, a socially responsible company can make a real difference in their own respective communities. This, in turn, can create a more robust reputation for the company, making them more trustworthy for the people, which can then lead to more shareholder value and profit. Thus, the cycle continues, cementing the idea that a socially responsible company has more chances of staying relevant for a long time.
2. It enhances relationships.
This goes way beyond the relationship with the local community, as a socially responsible company makes it an employer of choice, leading to more employees that would genuinely want to support a company’s mission and vision. This, in turn, would lead to a much healthier employer-employee relationship that goes beyond the simple you’re-here-because-I-pay-you situation. It also helps that the current working force is mostly made up of millennials.
3. It builds public trust.
According to Better Business Journey, 88 percent of consumers said they were more likely to buy from a company that supports and engages in activities to improve society. This couldn’t be any truer, after all, a company that customers can trust is a company they will stay loyal to for a long time.
Perhaps one of the most important long-term factor to consider in a business, CSR helps make a company more sustainable and long-lasting. Something every company wants.
There are many more benefits that CSR can provide, and this is merely a tip of the iceberg. Still, in today’s day and age, being socially responsible is definitely the way to go. It’s here to stay, and it’s time companies start recognizing the many benefits it can give.
(Featured image by DepositPhotos)
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