What is Corporate Social Responsibility?
Every businesses main goal should not only be to make a profit, but to also improve the world that we live in. Incorporating corporate social responsibility is one way that a business can do this. Corporate social responsibility is when a business is conscience of the decisions they are making and how it affects the world we live in and society. This can be achieved in my different ways it can vary depending on the industry of each business. Many companies incorporating this into their business focus on bettering either people as a whole or the planet. This helps raise standards of the business and the values of each of the employees as well.
Benefits for the Company
Making this a main priority in a business also has benefits for the company itself. Some consumers looks for service companies or businesses that are passionate about a certain cause. Some companies and businesses do this by donating money to a particular cause they believe in or designing their product using certain resources. Their may be a short-term cost to the company while getting started with this movement, but the long-term benefit can make it worthwhile.
Improving PR and Marketing Efforts
Corporate social responsibility can also positively affect the public relations of the company. It can increase the likelihood of positive press attention and put a spotlight on the business in the media. This can help spread the word without the company having to do much. Additional marketing material can also be created by the business to focus on the corporate social responsibility effort that they are making. This can provide additional material for the company and give consumers a new perspective on the brand that they didn’t have before.
Possibilities of Saving Money
Depending on what kind of products a business sells, there can also be an opportunity to save money. Some companies are able to reduce their packaging, which can save costs and also help the environment. Others might be able to reduce the amount of energy that is used in their service business or product creation.
Positive Influence on Employees
When a company is respected by the public, people will also be interested in working there. In the long-term this can also help keep employees happier while they are working. If employees stay longer at a company recruiting costs will be reduced. There will also be less of a need to hire new employees. Launching corporate social responsibility in the company can also keep employees motivated since they also feel like they are doing their part in making the world a better place.
Jeff Ramson is the CEO of PCG Advisory Group and an authority within the Investor Relations industry.