January 14, 2020

Benefits of having a CSR Strategy

Companies invest in CSR to manage their risk, recruit employees, bolster their brand in the eyes of investors and consumers, ease their supply chains, save money, increase access to capital, differentiate themselves from competitors and sometimes because it’s just the right thing to do.

Corporate social responsibility (CSR)
has many advantages that can apply to any business, regardless of its size or sector.

Benefits of corporate social investment for businesses

The potential benefits of CSR to companies include:

  • better brand recognition
  • positive business reputation
  • increased sales and customer loyalty
  • operational costs savings
  • better financial performance
  • greater ability to attract talent and retain staff
  • organisational growth
  • easier access to capital

Responsible business reputation

Corporate social investment can help you to build a reputation as a responsible business, which can, in turn, lead to competitive advantage.
Companies often favour suppliers who have responsible policies, since this can reflect on how their customers see them. Some customers don’t just prefer to deal with responsible companies – they insist on it.

Other benefits of CSR to companies

By acting in a sustainable, responsible way, you may also find it easier to:

  • access finance – investors are more likely to back a reputable business
  • attract positive media attention – e.g. when taking part in community activities
  • reduce regulatory burden – good relationships with local authorities can often make doing business easier
  • identify new business opportunities – e.g. for the development of new products or services

We at Impact West London believe the most powerful impact is on your staff….
CSR efforts don’t just boost profits and improve customer relations — they’re good for employee relations, too. Here’s how.

  1. Increased Organisational Citizenship Behaviour’s and Improved Employee Relationships
    If employees think their employer is “doing the right thing,” it seems they are more likely to “do the right thing” themselves. When organisations implement best practices in CSR, employees are more likely to engage in cooperative behaviour’s towards their co-workers and the organisation, like going out of their way to help their teammate. Similarly, CSR promotes higher-quality and closer relationships between employees.
  2. Enhanced Employee Identification with the Organisation
    When employees feel that their organisation is socially responsible, they experience a greater sense of identity with the business they work for. In fact, social responsibility can be more important than financial success in determining how much employees identify with their workplace.
  3. Improved Retention and Organisational Commitment
    Feeling positively about their organisation’s CSR initiative has been shown to increase employee’s intentions to stay with their current employer, and their overall commitment to the organisation. Commitment includes a huge range of positive attitudes, including how much employees like their organisation, make personal sacrifices for the organisation, and see their own future and success tied to the organisation’s success.
  4. More Attractive Company Culture to Prospective Employees
    Along with increasing current employees’ commitment, CSR can also make organisations look more attractive to applicants and prospective employees. In the age when millennials look to work for “high impact” organisations, engaging in CSR may help companies to attract top talent over other organisations. For example, a survey by the non-profit Net Impact found that 72 percent of students about to enter the workforce stated that a job where they can “make an impact” was important for their happiness.
  5. Better Employee Engagement and Performance
    Employees have also been shown to be more engaged and to perform better when they feel good about their company’s CSR involvement. By making employees aware of the company’s efforts to give back and celebrating these efforts, you can help employees become more actively engaged with their work, and do better work overall.
  6. Increased Creativity
    Finally, CSR can increase employees’ creative involvement, including generating new but practical ideas, originality, and creative problem-solving. When organisations express their values and passions through CSR, employees may be inspired to develop new and better ways to do their work.