Companies, nowadays, have begun taking their Corporate Social Responsibility (CSR) more genuinely as it turns into a fundamental piece of their business activities and sustainable methodology.
CSR is looked as an opportunity for goodwill and sustainability rather than legal compliance; it is an instrument of innovation and opportunity to explore new markets along with creating customer loyalty.
1. Innovation and Exploring New Markets:
Driving organizations are utilizing CSR methodologies to make and investigate new markets. For instance, Microsoft helped creating nations manufacture IT frameworks which thus helped them to open up new markets, making new business openings.
Geoff McDonald, Global Unilever VP said
Unilever was able to innovate a hair conditioner that uses less water under the “lens of sustainability”. Without sustainability, the company’s research and development efforts possibly wouldn’t have led to such a product.
2. Employee Engagement:
CSR ensures that the employees are engaged, motivated and connected to the company. A decent CSR program lined up with the estimations of workers causes an organization to pull in and hold skilled individuals.
At the point when representatives discover reason in their work, they can work with upgraded energy and duty prompting better execution.
3. Enhanced Brand Image and Recognition:
When an organization dedicates assets to a CSR program, it sends a sign to investors about the general wellbeing and budgetary execution of the organization. In particular, an organization whose CSR spending exceeds investor expectations observes positive stock returns.
Strategic CSR can help companies to develop an emotional connect with their consumers and hence, increase their brand recognition and customer loyalty. CSR procedure and activities is the new age successful instrument in increasing aggressive edge over conventional advertising.
“Increasingly, consumers are expecting companies to take responsibility for their immediate environment and society around them”. Piyush Mathur, president of Nielsen (India).
“In India, over half of the consumers surveyed are willing to pay more for products of business houses that adopt social causes”. Business Standard (Jan 2013)
4. Improved Financial Performance:
Strategic CSR helps companies to improve financial performance through increased sales and reduced costs.
Effective employee engagement helps to attract and retain talented employees thereby reducing hiring and training costs significantly.
Similarly, opting for sustainable business operations can reduce energy and operating costs to a large extent along with earning the badge of being environment considerate business.
5. Greater Media Attention:
Out of the box and innovative CSR initiatives tackling complex societal problems get immediate media attention which helps to create mass awareness of the initiatives and of the company, leading to rewards of brand recognition and goodwill.
Therefore, CSR is an opportunity which if done in an impactful manner can in return not only place a company on the positive side but can behave as a huge competitive advantage for a company.