CSR: what it is and how it can benefit your business

How does CSR help a company’s bottom line?

CSR can be an effective way for companies to differentiate themselves from competitors, build customer loyalty and gain market share. Today’s consumers are more likely to purchase products from companies that demonstrate a commitment to social good.
A 2017 survey, for instance, found that almost 90% of consumers in the US say they are willing to pay more for products or services from businesses that provide a positive impact on society or the environment. The same survey found that 75% are willing actively boycott brands that they perceive to have a negative impact on environmental or social issues they care about.

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Other advantages of CSR

It helps build a positive image

A company’s commitment to being socially responsible can help establish trust among consumers and also improve their perception of the brand. Companies that show they care about the communities they operate in will be perceived as more trustworthy than those who don’t.

It helps attract talent

In today’s competitive job market, many people look for companies with strong values and ethics when choosing where to work. A company that stands out as a good corporate citizen will find it easier to attract talented employees who have ethical values similar to those at the company.

It helps secure long-term success

A company’s commitment to being socially responsible can help secure long-term success by improving its relationships with stakeholders such as employees, customers and suppliers. When stakeholders feel valued by a company, they will be more likely to stick around and help drive growth.

Famous examples of CSR

Starbucks

Starbucks has always been big on CSR. From day one, Starbucks has always prioritised social responsibility, as evidenced by the C.A.F.E. (Coffee and Farmer Equity) programme, which aims to ensure that the company is driven by social and economic responsibility in all its operations.
In 2012, Starbucks launched a coffee recycling programme whereby customers can return used coffee grounds for composting at local farms. It’s a great example of how companies can do their part to help reduce waste and recycle materials that might otherwise go to landfill or be incinerated.

Netflix

Netflix announced in a blog post that they would be offering unlimited maternity and paternity leave to both full-time employees and part-time employees who work more than 25 hours per week. This policy went into effect on January 1st, 2018 and applies to all new parents after giving birth or adopting a child. The company also stated that they would be extending its unlimited time off policy for those who need to care for sick family members as well as victims of domestic abuse or sexual assault.

Why CSR keeps coming under scrutiny

The problem with CSR is that it’s often a top-down approach. When planning CSR policies, companies should be aware that they will be questioned and they will have to prove their consistency. For instance, Netflix’s leave policy has been criticised for not covering the non-salaried workers in some of its distribution centers in the US. Instead, continuing to privilege the upper class. This discrimination, critics argue, really hurts low-income families and offers no help to those who arguably need it the most.

Conclusions

Corporate Social Responsibility is increasingly proving to be a necessity, but many companies yield to the temptation of ousing it as a tool to improve their bottom line, rather than effectively carrying out policies that benefit the planet, certain communities, or their own workforce. This kind of twisting of CSR principle, however, is short-lived, since consumers are increasingly watchful and aware of how and when companies are upholding certain values and when they are merely trying to appropriate them.

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