In a world flush with capitalism and mass consumerism, organizations must demonstrate a keen sense of social responsibility. CSR activities are the key to doing this and allow businesses to drive home the positive narrative of a corporate or entrepreneur with social responsibility activities at the heart of operations.
CSR actions are priceless as they promote healthy interactions between the company and the community. A perfect example of this type of effort was when one of the top financial business leaders in India, Sanjiv Bajaj, Chairman & Managing Director of Bajaj Finserv, requested that the central government permit public vaccination drives with CSR funding to achieve a greater good for both employees and their communities.
Instances where famous financial leaders in finance lobby for public gain and betterment are invaluable and are among the reasons why CSR can’t be put on a backburner. For a better understanding of why CSR is non-negotiable today, read on.
- Acts as a Trust-Building Catalyst
Companies today have little wiggle room when it comes to earning and retaining consumer trust. Modern stakeholders aren’t quick to trust the companies they interact with. Data suggests that around 84% of millennials do not trust businesses that they have dealings with, and this distrust only worsens with Gen-Z.
However, CSR activities that are primarily local and employ a targeted approach have proven effective when gaining trust. The transparency alone does wonders as this showcases a proactive involvement in communal gain. Outreach or literacy programs resonate with stakeholders, who are likely to trust a brand that believes in what they do.
- Boosts Employee Productivity Naturally
When done right, CSR activities build internal trust, promoting workplace positivity, engagement, and creativity, all while reducing employee turnover. CSR activities have a feel-good aura and help employees align with important company morals. They also help employees see their work as having a real-life impact, which drives progress, rather than feeling like cogs in the corporate machine.
CSR activities can also help hone and develop new skills in the workforce. Companies often assign a mix of inexperienced and experienced members to spearhead CSR projects, providing such employees with invaluable hands-on experience and leadership opportunities respectively. This skill development can lead to other opportunities for career growth and does wonders for increasing employee output.
- Evokes Positive Connections with Patrons
Consumers are more loyal to companies that are actively part of their community’s growth. As per reports, 55% of patrons are willing to spend more, if it means the money is going to a socially responsible entity. Moreover, these consumers are likely to engage in public support campaigns, even driving new business!
That’s not all, a Nielsen study conducted across 60 countries found that customers value social companies a lot more. So much so that they are willing to pay a higher price for goods and services. This consumer appeal is born out of sheer goodwill that CSR activities can easily evoke.
- Drive Value in Both the Short and Long Term
Improved brand image, awareness, and media coverage are all short-term benefits of CSR activities. Smaller companies often take this approach to garner positive press and showcase their morality and views on sustainability. However, in the long term, companies can create the patron of tomorrow through CSR.
For instance, a bank that invests in financial literacy programs empowers a community that indirectly drives value back. The benefit here isn’t simply on paper but has a real-world effect that changes lives in the process.
CSR activities cultivate loyalty, positive brand recognition, and attract superior talent into the workforce. All of these factors are crucial to success and are just another by-product of giving back.
