UNIDO defines the concept of CSR or Corporate Social Responsibility as “a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.” The concept of CSR is much more than charity and philanthropy, and it helps the organization to achieve its social and environmental goals. It can help them to give back to the society, and also better their image in the eyes of their stakeholders, both the internal and the external ones. CSR also make sure that the company is aware about its actions and the kind of impact it has on the society because of its operations.
Brands, consumers, and media professionals, all over the world have recognized the importance and the need of CSR in today’s climate. Let’s discuss some reasons why CSR has become the need of the hour, in today’s world and why brands need to start investing in it:
It helps to attract and retain employees
When a company is well invested in various CSR programs, they are seen in a better light. They are seen as compassionate, and as someone who is not just here to make money. This applies for the employees too. An employee who works for a company, which is well invested in CSR, is more likely to feel better about their employment status, and not want to change jobs. It can also help to attract new employees to the organization, and help to better the performance of the existing employees too, making them feel more motivated. Being the best PR agency in Delhi, we understand the importance of CSR and the need and requirement of it, today.
Because customers care too
Another reason that CSR is important today, is that customers care. Customers care about the environment now, about sustainability, about making the planet a better place, and making a difference in the world. They want to support brands and organizations that are trying to make a difference now and are not just here to make money. Recent researches have pointed out that how a brand acts towards the society and the environment can impact the purchasing habits of the customers in many ways. Even if it does not alter the purchasing habits, a company that invests in CSR is more likely to have a better reputation in the eyes of the customers. And since consumers majorly impact the decision making of the brand, it seems like it’s high time that brands start looking into CSR, if they already have not.
It can even save money
If a company is well involved in CSR and is known for its CSR programs even, it can help the company in the long run in many ways. One of these ways includes saving money too. Customers are often ready to pay more for a brand that is seen as a socially responsible brand. CSR can help improve the brand equity of the organization. Further, as discussed before, CSR can also help to retain the employees and attract new ones. Hence, it can also help the organization save money in the long run in some ways.
Often preferred by investors
Just like other stakeholders, a company involved in CSR can also better their image in the eyes of the existing and the potential investors. When an organization is involved in CSR, it might be seen as a good sign to the investors. CSR in such a case will be a sign to the investors that the company is managing their money better, as they are able to generate profit and do the responsible thing. Investors are also more likely to trust such an organization who is involved in CSR programs. They might even see them as an organization which is less likely to mishandle their finances.
Hence, CSR is becoming more and more important with the time. It can not only help the customers see the brand in the better light, but can improve the image of the brand in the eyes of all possible stakeholders. It can help the stakeholders trust the brand more, and can lead to an improved brand equity too.