Customers are becoming more knowledgeable about the impact of businesses on the environment and society. This is making them more invested in supporting socially and environmentally responsible businesses. A 2017 American survey found that 92% of respondents were more likely to trust a company that supports social or environmental issues. This shows the impact that CSR practices can have on a business’s success. Being socially responsible is becoming increasingly important and profitable to businesses.
Corporate social responsibility (CSR) refers to a self-regulating model that aids companies in their efforts to be socially accountable to themselves, their stakeholders, and the public. This accountability extends to the impact businesses have on all aspects of society, including social, economic, and environmental aspects. If a company engages in CSR then it should enhance society and the environment.
Benefits of CSR
There are numerous benefits for companies that choose to engage in philanthropic and ethical practices. Firstly, engaging in CSR can help a brand’s identity and recognition. Customers and shareholders prefer to engage with brands that align with their personal views and values. For example, cosmetics company LUSH has become well known for its anti-animal testing views. Customers that have a keen interest in these issues will feel more inclined to support LUSH and recognise it as a company which is aligned with their views and values, thus improving customer satisfaction.
Furthermore, being seen to be ethically responsible can improve profits. Businesses that engage in CSR practices will motivate customers to buy from them. As customers are becoming more aware of social and environmental issues, more of these customers are invested in researching a business’s CSR practices. This means that these customers will be more drawn to ethical companies that engage in CSR practices.
An example of Corporate Social Responsibility
Major car manufacturer, Ford Motor Company is one of the companies that is putting CSR at the forefront of its business practices. It invested $11 billion to design 40 new electric and hybrid car models by 2022. The company is making a very real effort to popularise eco-friendly, energy-efficient car models, which will largely benefit the environment.
Incorporating environmental sustainability or protection into your CSR policies
Incorporating environmental sustainability or an emphasis on nature protection into the heart of your company's CSR policies is a great way to improve customer satisfaction, increase profits (but not at the expense of the environment or society) and enhance your organisation's image. To find out what DGB can do to help with your CSR strategy, in terms of mitigating your environmental impact or improving the health of the earth for all biodiversity as well as communities, contact us now!
