What is CSR
My background in Business and Marketing opened me up to something called CSR. It stands for Corporate Social Responsibility which involves self-regulation and aims to contribute to society through ethical practices and supporting communities. This may involve activities such as reducing waste, ethical sourcing e.g. offering farming staff a fair wage or undertaking projects such as donating unsold goods or funding a project to provide access to education or work-based training to the poor.
I studied Business at university and I found that CSR was much more than just being environmentally friendly, but also making a difference in people’s lives and making them feel valued. I saw the correlation between CSR and marketing in terms of being a cost-effective method of promotion and building bridges to stakeholders. I got to see first hand the impact of social responsibility and the impact it has on communities which forms stakeholder opinions and how it would impact their involvement. So how can CSR make your business more attractive?
Increased staff satisfaction
A recent survey showed that 50% of millennials would be willing to take a pay cut to find work that matches their values which shows that it’s worth investing in ethical practices to attract employees. Imagine you were in a lucrative job, but you were being overworked and not made to feel valued. You would happily take a pay cut and work with someone that looks after you and you feel you can make a positive contribution to the wider community and consequently, you will enjoy going in to work knowing your passion and purpose.
How a company treats the community will manifest itself in how they treat employees and giving them opportunities to volunteer creates a sense of pride and community within an organisation who are effectively acting as brand ambassadors, this creates a sense of pride within their work which means that they are more emotionally invested and engaged therefore increasing productivity. Who doesn’t want happy employees?
Enhanced customer relations
Studies have shown that 55% of consumers are willing to pay extra for products from socially responsible companies. Millennials make up the majority of the world’s population and hold a preference towards brands that adopt ethical and sustainable practices. Furthermore, it can have a domino effect in this digital age as more customers will give positive reviews of your product/service. 40% of millennials rely on peer reviews to help them make a purchase and positive reviews will mean enhanced loyalty, therefore you can attract more customers and add value to your brand.
Fairtrade, Rainforest Alliance and Red Tractor certified products will stand out to consumers and show them that you have good intentions for wider communities. From a marketing point of view, this is a cost-effective and efficient method of generating positive publicity for your brand and is a manifestation of how you would treat your stakeholders when times get tough. However, CSR needs to be at the forefront of your culture and codes of practise needs to be constantly reinforced to ensure consistency, if not, customers will quickly recognize that you’re just using it as a marketing gimmick to gain free publicity and loyalty will drop as soon as you encounter setbacks. You wouldn’t plant a flower and not water it because you don’t feel motivated to do it.
Final Thoughts
Although CSR is a common practice, its benefits will still make your business stand out and make you more attractive to stakeholders including customers and employees. The phrase “Make friends before you need them” can be demonstrated by being socially responsible and looking after your stakeholders will serve you well in the long run, as supporting them in difficult moments will mean they’re more likely to return the favour. Think of it as investing money into a bank account, the credit will be there for you if you need to make a withdrawal. Consistency is important though and you need to commit to reinforcing it every day, rather than when it suits you.
What are your thoughts on CSR? Feel free to leave a comment below 🙂
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