Corporate social
responsibility (CSR) has become a dominant factor in the way companies
operate. The question facing the number crunchers at a company is whether or
not CSR has a tangible benefit for a business or is it just a PR exercise. The
answer is probably a combination of both.
The moment a corporation steps outside of
its sales mode to support a charitable organization or promote community friendly
policies they are, in effect, strengthening their brand. There might not be the
kind of immediate payback in sales that would occur after a TV ad or coupon
drive, but these kinds of measures go a long way towards fostering
that positive image that is so essential for a successful business. There
are other factors to consider when developing a Corporate Social Responsibility
strategy as it applies to a return on investment.
Improves efficiency
When a company goes “green” they are
essentially adopting eco-friendly policies with regard to things like recycling
and energy use. On the CSR front, that company can promote the use of those
policies. What they’ll discover is that these environmental changes can have a direct
impact on a company’s operating expenses. If they can lower energy costs
then the bottom line is improved.
Strengthens brand awareness
Even a national company generating millions
in sales can have a positive impact through their CSR
campaigns on where it matters most: directly in the communities. This type
of giving back can benefit a wide range of local organizations and clubs. It’s
also an opportunity to cross promote that charity and a company’s products. For
instance, a laundry detergent maker can sponsor a cleanup of a local beach or
vacant lot. Along with providing supplies, the company could also hand out
commemorative T-shirts and samples of their detergent. That would help a
neighborhood and increase awareness of the product.
Boosts staff morale
If a company throws its corporate muscle
into a good cause they have the ability to enlist their employees in that cause
as well. This often translates into supplying volunteers for a particular
event. During these events those same employees will benefit from bonding over
the experience. This in turn can help with productivity. In other words, if an
employee feels like they are working for a socially responsible company, they
will go the extra mile to insure that company’s continued success. Recently it was
reported that Microsoft
employees have contributed over a billion dollars to the company’s charities.
That’s certainly going to make those workers feel great!
