October 19 2018
Nobody is more strongly positioned to create long-term, sustainable change than companies. According to a 2016 PwC Global CEO survey, 64% of CEOs say that “corporate social responsibility (CSR) is core to their business rather than being a stand-alone program.” The Survey interviewed 1,409 CEOs in 83 countries with 76% defining business success by more than just financial profit.
Add to that, Michael E. Porter and Mark R. Kramer in the Harvard Business Review, “When a well-run business applies its vast resources, expertise, and management talent to problems that it understands and in which it has a stake, it can have a greater impact on social good than any other institution or philanthropic organization.”
It has been proven, time and again, corporations that include social responsibility among their core business strategies, strongly support their brand. They build trust with employees and customers. This is becoming more and more important every year as trust in businesses has been declining. According to the PwC Report:
“There is a body of research supporting the idea that, when there is a high level of trust in a company, it drives business performance by attracting new customers and retaining existing ones. A high level of trust also makes employees more committed to staying with the company, partners are more willing to collaborate and investors more prepared to entrust stewardship of their funding.”
Building consumer trust means loyalty, a rare commodity in today’s fast-paced, ever-changing world. And which corporation doesn’t want to have a loyal consumer base? It has so many benefits to the bottom line that CEOs are more onboard than ever to participate and lead in the CSR space.
Companies improve their bottom lines through CSR by building new partnerships, learning new markets, cultures, and generally gaining new insights into their market and customers.
And what about attracting top talent? Engaging in social responsibility programs while communicating their business’s higher-level purpose is a key to attracting the best talent. Globally, it has not gone unnoticed how CEO’s are increasingly including CSR in their strategies and positioning their company to attract top talent. There is nothing like a company embracing social change to interest talent that has many choices of employers. It has been proven to increase company morale, spark innovation and collaboration, have employees be more engaged in the company and generally perform better.
Businesses get to align with a wide range of social responsibility initiatives– their favorite cause, one that impacts their industry—whether it be ridding the oceans of plastic, building affordable housing, improving literacy, combating poverty, promoting diversity, helping women entrepreneurs and start-ups, the list goes on and on.
In today’s world where consumers are demanding that corporations have a socially responsible solution, it is imperative to a company’s brand to do its part to improve the world. Socially and environmentally responsible initiatives can both increase revenue and lower expenses for your company while making the world a better place.