Corporate Social Responsibility -The Truth About CSR !

Why Should a Company Implement CSR Strategies?

Many industries view CSR as an integral part of their brand image, believing that customers will be more likely to do business with brands that they perceive to be more ethical. In this sense, CSR activities can be an important component of corporate public relations. 

Why Is CSR Important?

The movement toward CSR has had an impact in several domains. For example, many companies have taken steps to improve the environmental sustainability of their operations, efforts have also been taken to eliminate reliance on unethical labor practices, such as child labor and slavery.

Although CSR programs have generally been most common among large corporations, small businesses also participate in CSR through smaller-scale programs, such as donating to local charities and sponsoring local events.

Benefits of Corporate Social Responsibility

Let's bring CSR for the community, it is equally valuable for a company . CSR activities can help forge a stronger bond between employees and corporations, boost morale, and aid both employees and employers in feeling more connected to the world around them. Aside from the positive impacts to the planet, here are some additional reasons businesses pursue corporate social responsibility.

Brand Recognition

I wish to elaborate on " Consumer Psychology", consumers are more likely to act favorably towards a company that has acted to benefit its customers as opposed to companies that have demonstrated an ability to deliver quality products. Customers are increasingly becoming more aware of the impacts companies can have on their community, and many now base purchasing decisions on the CSR aspect of a business. As a company engages more in CSR, they are more likely to receive favorable brand recognition.

Investor Relations

Research Scholars say companies that are considered leaders in environmental, social, or governance matters had an 11% valuation premium over their competitors. For companies looking to get an edge and outperform the market, enacting CSR strategies tends to positively impact how investors feel about an organization and how they view the worth of the company.

Employee Engagement

At the outset , it would be found that CSR-related values that align firms and employees serve as non-financial job benefits that strengthen employee retention. Employees are more likely to stick around a company that they believe in. This in turn reduces employee turnover, and the total cost of a new employee.

Risk Mitigation

Consider adverse activities such as discrimination against employee groups, disregard for natural resources, or unethical use of company funds. This type of activity is more likely to lead to lawsuits, litigation, or legal proceedings where the company may be negatively impacted financially and be captured in headline news.

By adhering to CSR practices, companies can mitigate risk by avoiding troubling situations and complying with favorable activities.--

Deepthi S Nair