Why CSR Is Important

What is CSR?

Corporate social responsibility (CSR) is a business term that describes companies’ efforts to carry out their activities in an ethical way whilst making some form of a contribution to society. It can take loads of different forms, ranging from initiatives designed to ensure that business is carried out fairly to environmental programs. 

The footwear company, Toms, is a great example of a company that has made a commitment to CSR. For every pair of shoes sold by the business, another pair is donated to a child in need. Toms also uses some of its profits to provide clean drinking water in third-world countries and help provide eye care to the visually impaired.

The Benefits of CSR

Above all, CSR is important because it contributes towards societal goals such as ending poverty and combatting climate change. But why would any profit-focussed firm choose to reduce its profitability for the good of society? Aren’t all businesses focussed on the bottom line?

Of course, there is usually a secondary motive when it comes to CSR. Many programs are designed to improve a company’s public image, often in order to undo the damage done by a public relations scandal or to tap into ethically minded segments of the market. With competitive, fast-moving consumer goods industries such as the coffee industry, CSR can be a useful form of differentiation.

For example, lots of businesses partner with Rainforest Alliance, an organisation that provides certification on sustainable agriculture and forestry. Partners are allowed to use certification stickers on their products and feature on the ‘certified products’ page on the Rainforest Alliance site, attracting sustainability-conscious consumers.

Some consumers are cynical about CSR efforts, particularly when large corporations use them in an obvious attempt to cast themselves in a positive light. Even if some people take this view of your programs, you’ll still be building brand awareness and it’s difficult to criticise a firm for contributing to society. It’s often the case that big CSR programs are also picked up by media outlets and generate additional publicity. 

These are probably some of the reasons that sprung to your mind when thinking about the motivations behind CSR. However, you might not have thought about the effect on your own employees. Research has shown that CSR initiatives improve employee satisfaction levels and ultimately lead to greater employee retention.

CSR for Small Businesses

There is now an expectation that all large companies engage in at least some form of CSR. Even if it wasn’t expected, pretty much all big brands have already acknowledged the benefits of starting their own CSR initiatives. But is it a good idea for smaller businesses to put their money into coming up with their own programs?

The short answer is yes. You really don’t have to spend lots of money on CSR – even small, family-run businesses are now getting involved! Your business could do anything from planting trees in your local area to volunteering at the weekends. CSR ideas that involve very little spending can sometimes be the best, coming off as a genuine attempt to help out.

CSR Tips

Publicise Your Good Work!

Publicise the details of your CSR programs as widely as possible. If you decide to plant trees in your local area, get the rest of your community involved and have it featured in the local newspaper. Write a blog about it on your company’s website or even considering adding a CSR tab to your navigation bar. Communicating your good work should be a key part of your CSR plan.

Create a CSR Statement

Come up with a CSR statement. This could cover your commitment to being a fair employer, helping out the local community, or protecting the environment. Whatever it is, make sure that the promises you make are achievable and genuinely relate to your business. You don’t want to be accused of greenwashing. Once you’ve written your statement, you could publish this on your company’s site.

Involve Your Employees

Make sure that you get your employees involved with the programs that you run. As you already know, CSR helps you to retain your employees. Contributing to a positive cause will promote greater job satisfaction and help to increase your employees’ sense of self-worth, encouraging them to stay at the firm.

Get Your New Starters Engaged

Introduce new starters at your company to the CSR statement and point them in the direction of the initiatives that you run. This will help them to feel that they’ve made the right choice by joining your company. If employees see your company as caring about societal issues, they’re more likely to feel a sense of inclusion and loyalty to the firm.

Rounding Up

By this point, you’ve probably got to grips with the benefits of CSR and why it’s important for your firm. CSR will increase public awareness of your company, casting it in a positive light. At the same time, it’ll help you to retain employees and keep them happy. 

More significantly than this, however, CSR is about giving something back. Whether you’re reducing your environmental impact, contributing to the local community, or helping out a charitable cause, CSR is your company’s chance to do something beneficial for the world.

We hope that this blog has given you some insight into CSR, its benefits, and how to get started with your own programs. If your business is looking for new premises, BizSpace has loads of different types of workspace available to rent on flexible plans at great prices.