Benefits of Corporate Social Responsibility

October 07, 2021

By Zargham Ahmad

Reap the Benefits of Your Good Deeds! 

Boost your brand image and employee satisfaction by demonstrating CSR practices.

But what exactly is CSR and how can carrying out CSR acts benefit your organization? Continue reading to find out!

So, What is Corporate Social responsibility (CSR):

CSR refers to the decisions taken by companies that have a positive impact on the environment, community, public, and even their own employees and internal operations.

It helps companies in countless ways, but more than that, it makes them conscious about their role towards a better economy, society, and environment.

With that being said, let’s find the Benefits of Corporate Social Responsibility.

Benefits of CSR

Here are 4 benefits of CSR.

1. Employee Satisfaction

One of the most important benefits of CSR is employee satisfaction. An organization is known by its employees and if they’re not happy working there, its success won’t last for long. 

People look for engagement, respect, praise, recognition, motivation, and fair compensation at their workplace. 

Companies with a highly engaged workforce are 17% more productive and 21% more profitable as compared to companies with a disengaged workforce, according to a report by Gallup.

This is where CSR comes into play. Keep your employees close, treat them well, pay them according to their caliber and keep them motivated. They are your organization’s biggest assets.

2. Better Brand Recognition/Public Image

Another way in which CSR benefits your organization is by boosting its public image and increasing brand recognition. Treating your employees nicely is one thing, but showing the same understanding for those outside the organization is equally important. 

According to a study by Harvard Law School

“Stakeholders have the ability to influence the success or failure of a company.”

Therefore, many organizations use CSR as a well-thought-out tool to meet the expectations of stakeholders, by understanding their views and concerns for the environment to improve their image, recognition, and eventually equity.

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3. Customer Loyalty

CSR also benefits your organization by increasing customer loyalty. Customers are the reason a brand comes into existence and keeping up with their needs and wants is what helps your business grow.

73% of the customers love brands that provide helpful customer service, while 13% agreed to pay 50% more for products or services of a brand if it resulted in a positive impact on the world. 

So, people are naturally inclined towards brands that are responsive, make them feel special, and contribute towards a better environment, and that’s the kind of CSR you need to do to get a loyal customer base. 

4. Reduced Turnover

Reduced turnover rate as a result of CSR is yet another benefit worth mentioning. 

Companies with a reduced turnover rate bring in 4 times higher profits, as reported by Lessonly.

Most organizations lack the art of retaining employees. If a worker is not happy with the internal environment or decisions, they will start looking for other options. Collecting employee feedback and then using it to make employee-centric decisions within the organization is a viable action plan to retain employees and reduce the turnover rate.

5. Increased Creativity & Innovation

With CSR initiatives in practice, employees feel acknowledged and come up with innovative solutions and product ideas. 

According to Fronetics:

When an organization demonstrates its values and passions through community giving, employees feel encouraged and supported to develop new and better ways to do their jobs.”

So, motivate and inspire your employees to use brainpower to think outside the box and figure things out.

6. Incoming Talent

An organization that practices CSR, attracts talent, which is obviously quite beneficial for its growth and success.

82% of millennials consider a company’s CSR efforts when deciding where to work, while 70% are willing to take a 30% pay cut to work for an organization with strong social values, based on research by Cone Communications

So you see, Benefits of Corporate Social Responsibility in your company, and most of these benefits are directed towards increased revenue streams and overall growth. 

With the pace at which things are moving, it is important for all organizations, big and small, to shift from the conventional ways to the new ways to stay ahead in the game. 

And becoming socially responsible is one such way. 

To stay aware of the needs of our employees, customers and the environment, in general, is not a choice anymore, rather it has become a crucial factor to keeping your organization going and making a positive impact. 

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