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Corporate Social Responsibility And Why It Is Important
Corporate Social Responsibility (CSR) is a broad term that defines a company’s efforts to improve society in any way possible. CSR provides a chance to all the employees of an organization to contribute towards the society, environment and country. It won’t help solve the world’s problems in a day. That being said, CSR helps integrate social, environmental, ethical, human rights or consumer concerns into business operations and core strategies. It can bring benefits in terms of risk management, cost savings, access to capital, customer relationships, human resource management and innovation capacity while encouraging more social and environmental responsibility from the corporate sector.
Here are a couple of reasons why CSR is not just a fancy term used for tax refunds but a way to create a positive word of mouth publicity for the organization on the whole.
1. Consumer and employee engagement
CSR can help companies engage with consumers in new, innovative ways to develop a better understanding of consumer behavior, generate feedback and increase good will for the company. Similarly, employees can help create campaigns for the benefit of the society by focusing on the company’s CSR priorities. It helps foster innovation, creativity and helps look at the company’s long term interest, ensuring that the company’s future is sustainable. Employees who are proud of their company’s social responsibility are known to be more engaged at their jobs.
2. Media Coverage
Everyone loves a good Samaritan, especially the press. Corporate social responsibility can help bring not just the company into the limelight but also those issues of the society that need media attention. With online media booming, any properly planned program for the benefit of those in need provides a win win situation for the company and the society at large. Corporate social responsibility plays a crucial role in making your brand popular not only among your competitors but also the media and most importantly the people who are your direct customers. But, CSR activities should not be undertaken only to gain publicity and media attention. Believe in a cause and then take up the initiative to improve a situation.
3. Forge Partnerships
Partnerships are vital to any company or organizations. CSR activities provide opportunity for companies to forge new partnerships with other companies having similar CSR programs. Small business also has the chance to collaborate with larger institutions and create a better and more elaborate plan as well as develop a working relationship with the established organizations. A key benefit of such collaborations is that the partnerships bring additional awareness to the cause.
4. Branding
Corporate social responsibility helps create a brand image for your company, especially if you have stuck with one cause from the beginning. It also helps differentiate your company from the competitors and build long term employee, consumer and citizen trust as a basis for sustainable business models. Corporations that actively promote their social responsibility activities can shape consumer perceptions and build the company’s image through their work.
5. Government Relations
Generally, companies have an easier experience dealing with politicians and government regulators when they emphasize corporate social responsibility. Positive public perception of any organization will not provide an opportunity for activist groups to launch public campaigns and demand government inquiries against the company. In many countries, governments also provide various benefits for organizations who take up CSR activities or are involved in CSR forums.
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