Why is social responsibility important to a business?
Social responsibility has become increasingly important to companies over the last several years. Whether empowering women, helping the environment, or trying to end poverty, more and more companies are incorporating social responsibility into their overall business strategy. There are many reasons why a company might engage in social responsibility, and in this article we’ll outline a few of them.
Improving the Company’s Brand
Being a socially responsible company can bolster a company’s image and build its brand
Helping Companies Stand out from the Competition
Companies that are involved in the community stand out
Examples of Corporate Social Responsibility
Coca-Cola started the 5by20 initiative to empower women across the globe
- Visa developed innovative ways of bringing digital cash to places in the world where the financial infrastructure doesn’t exist or for people who don’t have access to the financial system
- Today, about half the adult world lives in the informal economy, dealing exclusively in cash
Engaging Customers
Building relationships with customers is the cornerstone of a successful company
- Having a social responsibility policy can impact the buying decisions of customers
- Some customers are willing to pay more for a product if they know a portion of the profit is going to a worthy cause
Bottom Line
When social responsibility is recognized as part of a company’s business model, it can attract positive publicity, help attract and retain top talent, and improve relationships with customers and their communities
Retaining Top Talent
Employees want to feel like they’re part of something bigger
- Social responsibility empowers employees to leverage the corporate resources at their disposal to do good
- Being part of a strategy that helps the greater good can boost employee morale and lead to greater productivity in the workforce