Why Corporate Social Responsibility Matters

No matter what the size of the company you’re running or what industry sector it represents, it’s important to consider corporate social responsibility. As a business leader, you’re driven to develop and provide your clients with a quality product or service, which involves accountability for your business practices. You’re also in the position of being able to make a difference for people beyond what your enterprise delivers. Learn why it is important to be a good corporate citizen.

Enhances community

Chances are, you live in the same community where you work. It could be a large metropolis or smaller municipality. Nevertheless, it’s a place that you care about. When you arrive at the office each day, you’re excited to get to work with your team and add value to the marketplace. And, when you’re planning leisure or family time, you’re looking forward to what your city has to offer. So, it stands to reason that you’re invested in your community.

Contributing to a safe and caring community means ensuring that your enterprise is helping society and the environment, and that you’re using company resources for the good of the population. You must be fully aware of the economic, social, and environmental impact that your business is having and strive to make improvements where you can. In addition, it means looking for philanthropic or volunteer opportunities to enhance your community. Both endeavors require that you pay attention to what’s happening around you, encourage dialogue with community leaders, and network with like-minded individuals.

Generates creative solutions

Corporations can help to solve problems by exercising their social influence. Perhaps your city’s hospital is in need of an MRI machine, and existing monetary resources are inadequate. Your company could organize a fundraising drive to help reach a financial target. Better yet, you could ask other local firms to join your efforts.

Here’s another example. Your city could have a shortage of affordable housing, and it’s inhibiting its economic growth. As a result, you may find it difficult to attract potential candidates who would be willing to move to your community in order to take a position with your firm. Therefore, you might want to consider providing financial support to a nonprofit that builds affordable housing. An Irish business actually took this idea one step further by working with a developer to construct homes for their employees.

Boosts morale

Your business depends on the expertise of a well-trained and engaged workforce that will hopefully be with you for the long-term. People will be motivated to apply to job postings and to build a career with your firm when they perceive that you think like they do and operate in an ethical manner. Prospective employees and others will look for a commitment to social responsibility that’s embedded in your company’s statement of values and principles, and emblazoned on your website.

When it comes to your staff, they’ll be proud to be associated with a business that’s intent on being a good corporate citizen. Furthermore, when you invite them onboard to support your efforts, you’ll have a loyal team that is committed to your company and their job responsibilities. Typically, involving staff in this way would include volunteer efforts—either during or after work hours—such as organizing a food drive or raising money for a worthy cause. Some companies even engage their employees in revising the firm’s mission and values to represent the social impact they want, and this is another way to boost morale.

Builds a legacy

If you want to create a positive and lasting legacy for your company, demonstrating that you’re a good corporate citizen is an excellent way to do so. You should be strategic and select a worthwhile cause that’s somehow related to your industry. For instance, if you’re a publishing house, you might consider a way to support a literacy initiative. The public will be more likely to associate your brand with the initiative, and your business will be known for its altruism.

Enhances operational efficiency

Improving operational efficiency is often a byproduct of being a good corporate citizen. Generally, there are two aspects to it. If your firm has implemented socially responsible and sustainable business practices, it can have the effect of reducing your production costs. For example, you may want to consider reusing and recycling some of your manufacturing materials where it makes sense or implementing a system to conserve water usage or electricity. Seeking out responsible approaches such as these can help to reduce your operating costs.

Takeaway

Demonstrating social responsibility offers many benefits for a business. Most importantly, it can enable a company to help humanity in a meaningful way.