Today, business success’s definition goes beyond brand recognition, profitability, and growth rate. Employees, customers, and other stakeholders of a company judge the organization by the kind of corporate social responsibility it demonstrates. But, what is corporate social responsibility or CSR? CSR is a self-regulated business model that organizations adapt to demonstrate how effectively the organization contributes to social development and community well-being. It’s a direct reflection of the commitment and accountability of the organization to staying conscious of its impact on all aspects of society, including social, environmental, and economical.
The Impact of Corporate Social Responsibility on Businesses
Corporate social responsibility refers to the company’s willingness to create a positive impact on society and the environment through its actions. By embracing CSR, companies ensure that their business activities have some connection in some ways to address the well-being of people and society. Since social awareness impacts brand perception, it reflects the organization’s attractiveness to its employees, investors, and customers. Therefore, the company’s image and business success depend on CSR activities, which help talent retention.
How to Implement CSR?
The intention of ‘doing good’ is at the core of all CSR initiatives taken by organizations. It started as voluntary choices for organizations that transformed into mandatory regulation. Companies can implement CSR activities into the business model. But one thing is common – the company’s practices must integrate with business operations and culture.
CSR Examples
One of the corporate social responsibility examples is that of the leading toymaker Lego. The company pledged to reduce its carbon footprint and remains committed to directing its activities to support sustainability. The initiative earned the company the title and recognition as a WWF Climate Savers Partner.
Salesforce is another company that greatly impacted Corporate Philanthropy by raising its position above all the global recognition gained as a tech giant in cloud technology. The company’s 1-1-1 philanthropic model contributes one percent of employees’ time, one percent of profit, and one percent of the product to the non-profit sector and communities. The grants awarded by the company are more than $406 million, and more than 40,000 organizations received donations. The company has logged a record CSR time of more than 5 million hours of volunteer service.
Businesses Benefit from CSR
CSR is now an integral part of most businesses because it is not only a legal requirement but beneficial for businesses in the long run. As the environmental consciousness is increasing across society, people use it as a benchmark to create brand perceptions. How good a company is in discharging its social obligations impacts how people evaluate the brand.
Moreover, companies that demonstrate corporate social responsibility are more attractive to their employees and help retain them. Investors, too, find such companies more dependable and attractive as they are satisfied with participating in human well-being. CSR is how companies contribute positively to the environment and society.
