How can corporate social responsibility strengthen your brand?
In the fierce competitive scenario existing in today's business, having a socially responsible brand identity acts as an enabler to how a company is perceived. A company can establish the unique position of their brands in two ways; firstly, in terms of quality of product or service, creating credibility in the minds of consumers. Secondly, companies can establish themselves as virtuous corporate citizens, this along with the assistance of CSR programs. According to a recent report from Reputation Institute, as published in Forbes, it is found that 42% of how people feel about a company is based on their perception of its CSR activities. So, for any company, whether a startup or established, it is necessary for the company to formulate and follow a good CSR strategy that will make them accountable to themselves, their shareholders, and the public as a socially responsible organization.
Along with the societal impact a great CSR program brings, it has a great impact on business too! It has been proved that CSR assists in increasing customer loyalty, bottom-line sales numbers and attract good quality employees – thus notching up the company’s brand value. As consumers, employees and stakeholders are prioritizing CSR, it is becoming more important to have a socially conscious image. Companies committed to various causes are perceived as more philanthropic compared to the companies where CSR does not exist. The outcomes of a socially conscious brand image on various stakeholders could be as below
Consumers:
Consumers when interviewed for the research, claimed that they are more likely to purchase goods and services from the company that supported an issue they care about and refuse to buy from a company that contradicts their own belief on the same issue. The company’s beliefs and values that drive its brands have become progressively important, as more people are aware of the impact their buying decisions could have on the world. Though affordability is an important criterion, fewer people are attributing the price of a company’s product or service, when compared to environmental impact, good business practices, social responsibility, and giving back to society.
Employees:
"The next generation of employees is seeking out employers that are focused on the triple bottom line: people, planet, and revenue," said Susan Cooney, Head of global diversity, equity, and inclusion at Symantec. The employees of companies performing corporate social responsibility activities are encouraged to be more engaged in their jobs as they are proud of their company's commitment to society and its positive public image. It also cultivates their creativity and individual philanthropic responsibility. Employees then, in turn, contribute their time, money, or both to worthy causes which then helps them develop both personally and professionally.
Investors:
CSR has become an integral part of how a company operates. The scope of corporate social responsibility activities is for all the ways in which a company should have respect for its impact on the world around us. They need to demonstrate what they are doing as part of their business for customers, for their employees and for the community at large. By these, it helps in attracting and retaining investors by demonstrating the commitment for the bigger picture, beyond just profit or loss.
Corporate Sustainability or CSR goes beyond just the legal or compliance obligations of good governance, putting social and environmental issues equally at the core of businesses, ensures achievement of long-term sustainability goals. Startups and small companies which may not have good financial support can have a significant impact on their local communities, simply by providing solutions with the resources you have already. While designing a CSR program, involving your employees in the decision-making process can increase their engagement and success as their contribution is related to their passion and it also paves way for them to have a better understanding. It is also important to communicate the strategies to consumers for them to know what you are doing to be socially conscious. It is important to show gratitude towards the community you operate in, as well as the employees you work with. In doing so, you cultivate great relationships, create a successful business, and be accepted as a business with high moral values.
In Conclusion
Whenever people buy, it is now seen as an extension of their personality. And through this, people perceive their buying decisions as a way to support the causes they care about. Companies with ethical CSR programs, which align with those of their customers create a sense of loyalty, community, and solidarity around their brand. When a company shares their customers’ views and values and helps contribute to solving a part of a community problem, employees are going to want to keep working with, and customers buying from - that company.
Job Booster India has instituted a CSR Advisory service to assist and guide the companies to integrate the mandatory CSR programs and CSR activities into business models, to build sustainable corporate self-regulation. So, our clients stand to benefit from that social identity, as such activities help their brand to become more empathetic.
Interested in aligning a great CSR program through your company? Request more info from Job Booster India and start achieving your CSR goals today.
