The importance of corporate social responsibility does not depend on making only material or commercial gains, which will inevitably happen, but the matter goes far beyond just profit. This means that the company is aware of its role and position in society, and what it should promote.
Moreover, there are many hidden, or to say indirect, aspects of the importance of CSR; For example, you may not imagine that the social role of a company will help it attract investors or reduce expenses, but these things do happen as we will show later.
Since CSR is not mandatory, many companies may not feel the need to get involved. However, there are many reasons that encourage companies to get involved in these social activities, and we will simplify these reasons soon, but what needs to be emphasized now is that whatever form social responsibility projects take, it is definitely a benefit for both the company and society. .
The importance of social responsibility
monitors «Entrepreneurs»Some characteristics of the importance of corporate social responsibility, as follows.
To attract and retain talent
The importance of CSR is shown in the fact that it helps the company to attract and retain qualified and talented employees; One of the main reasons why people are excited about working for a company is their CSR strategy.
The CSR strategy shows that the company is empathetic and treats all people, including employees, well.
CSR firms are more likely to attract talent, and CSR efforts also help promote a more productive and positive work environment for employees. Volunteering increases the positive efforts of employees.
Improve customer loyalty
To attract and maintain customers, businesses need to pay attention to what customers care about. If a customer feels they are living out their values by supporting a specific business, they are more likely to stick to the brand.
This is another manifestation of the importance of social responsibility. Customers feel proud to buy from a socially responsible organization and are more likely to recommend it to others. Loyal customers are the best marketing publicity a company can get.
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To give the company a competitive advantage
Customers care about the company’s role in social issues and will be loyal to companies they believe are in line with their values.
This means that companies that meet the needs of these customers have a competitive advantage over companies that do not. They may offer the same products and services, but the fact that they make corporate responsibility a priority makes it more attractive.
Perhaps one of the important aspects of hidden social responsibility is that it helps attract investors and facilitate obtaining financing. As socially responsible companies seem more attractive to investors, these investors have one goal in common: to get greater returns from the money invested.
Companies that are able to manage finances while still helping their communities are considered responsible, transparent and reliable.
According to a 2016 report by Aflac, investors typically do not view investing in CSR as a waste of money, but rather as an “indicator of a corporate culture that is less likely to cause costly mistakes such as financial fraud.” The study said that 61% of investors view CSR as a sign of “ethical corporate behavior; This reduces investment risk.
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You might not expect a CSR strategy to improve the profit margin, as it usually requires investment in projects. However, many customers are willing to pay more for products of a socially responsible brand.
CSR can help attract and retain employees. Given that turnover companies can cost thousands of dollars, this is remarkable.
Saving costs and expenses is one of the most important aspects of the importance of hidden social responsibility; The company’s responsibility does not mean that it sacrifices profits, but it can reduce costs and save expenses.
For example, since General Mills installed its energy monitoring system, it has saved millions of dollars every year. While the equipment may initially cost the company, it does save money in the long run.
And when lower costs are combined with more expensive products, companies can make a very good profit by accepting social responsibility.
Open new markets
There are many untapped markets; Because traditional business thinking does not consider it profitable; This is where the importance of social responsibility comes to the fore.
It is through these social activities that companies can open new doors to neglected regions and markets, and when they think about social impact in addition to profit, companies can find a balance and differentiate themselves from others. Consumers will appreciate that the company thinks about where it can help and not just about profits.
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