8 Reasons Companies Need To Implement CSR

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by Samantha Tung

When most people think about corporate social responsibility, nonprofit organizations and larger companies come to mind. They are the ones getting more attention from the media and are more concerned with their own reputation for their stakeholders and the broader public. However, businesses of all types and sizes can greatly benefit from implementing CSR into their organizations.

More than ever, businesses are being expected to bend to the obligations and expectations by consumers to be more responsible socially within their communities. On a world-wide level, both private corporations and governments are being held accountable for how their work impacts the environment.

In today's consumer marketplace, any type and size business can gain benefits from being more socially responsible. As a for-profit business, you can better your business by embracing CSR. Below are some of the reasons companies need to implement corporate social responsibility into their organization.

1. Expand Target Market

One benefit companies can gain from implementing CSR is the potential to expand their target market size. Social sustainability and contribution are two important features which appeal to a new class of consumers for any type of solution. This is necessary to penetrate customers from different countries and cultures as well.

2. Gives Customers An Incentive To Pay Premium Pricing

Corporate social responsibility can create a higher value of your company's brand, add value and extend your exclusivity. In turn, this can improve profitability, lower risk and justify premium pricing on products and services. All stakeholders will view this as a benefit and will encourage new investors to come on board, thus raising the current valuation of your company.

3. Increase In Customer Loyalty and Advocacy Across All Markets

For many businesses, existing customer advocacy is a key contributor to bringing in new customers. Additionally, bringing in new customers and getting them to the same level of profitability as older customers is increased by 16 times. Loyal and happy customers will post great product and service reviews. They are also more likely to recommend a business to friends and family members.

4. CSR Helps Customers View Businesses As The Best Choice Against Competition

More consumers are becoming aware of socially responsible companies. Many millennials will not shop with brands not acting or running their business in a socially responsible manner. Using CSR allows you to relay a message to your customers and the public that can position your company for a competitive edge against other companies.

5. Improvement In Team Productivity And Motivation

Companies that sponsor social initiatives and offer time for their employees to support their own specific initiatives can help foster pride, loyalty and motivation among the team members. The company as a whole will be more responsive and engaged in their job tasks. As a result, productivity will increase along with job satisfaction.

6. Attracts Better Job Candidates And Improves Retention Of Employees

A company can only be as successful as the employees they can both attract and retain. When a business is able to be recognized as a socially responsible organization, it will increase its attractiveness to qualified applicants. A CSR culture will bring in the best and brightest into the organization.

7. Additional Financial Grant Opportunities And Governance Flexibility

In order to reduce investor suits, many B-corps are offered relief through sole directives to maximize their shareholders' profits. When businesses use targeted socially-responsible initiatives, they can also get qualified for many government grants and rebates for alternative energy. Additionally, many organizations will be able to receive other philanthropic initiatives in order to continue supporting their efforts in being a socially responsible company.

8. Attract More Investors

Investors like to look for businesses with teams that show real integrity, passion and relays positive messages to their local communities and beyond. Investors view a business' commitment to positive social change as a great long-term investment. CSR can offer both investors and customers a sustainable value. The best investors search for companies that have a great balance between expanding their target market and maximizing their profit margins.

The potential offset of these listed benefits of CSR is that it can be a tough balancing act for many businesses. There is a thin line between managing many social initiatives while also focusing on making income to keep the business alive and successful. Being successful while implementing CSR requires an adept and strong business leader with an entrepreneurial spirit to make the right tradeoffs for the sake of the business. For the right companies, the opportunities are endless with CSR implemented appropriately.

Samantha Tung is a contributing writer and media specialists for Caliber Collision. Caliber participates in many CSR programs nationwide.

Picture credit:

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