“Creating a strong business and building a better world are not conflicting goals – they are both essential ingredients for long term success”

bill ford

This blogpost outlines the importance of corporate social responsibility and the benefits that ethical and sustainable practices can bring to companies or business.

In recent years, corporate social responsibility (CSR) has become a buzzword and has grown to become an increasingly important metric within the business realm and with regard to post pandemic situation, there is a significant rise in the importance and adoption of CSR as consumers and employees seek to support businesses that align with their morals and share with the same values. 

We all know that the primary objective of business organizations is the making and maximization of profits, but it is always good for companies and other business organizations to uphold ethics in their operations and generally be socially responsible rather than just those that impact their profit margins. I’ve noticed that most of the successful companies today used social responsibility practices as a way to give back to society, thank customers for their loyalty and to recognize the efforts of their employees. Social responsibility can come in the form of environmental efforts, philanthropy, ethical labor practices, volunteering, movements and empowerment of individuals. Whatever form these corporate ventures take, they are definitely a win for both the company and the community alike.

However, many companies define their success base on the profitability, growth rate and brand recognition of their business. But in today’s world, customers, employees and other stakeholders judge a company by how its activity impacts the economy, environment , community and society as a whole which means social responsibility cares about the greater good and not only greater profit. There are several reasons I believe it is important for companies to prioritize social responsibility.

It attracts and retains employees

Companies with CSR strategies is more likely to attract top candidates because it shows that the company is compassionate and treats all people, including employees, well. And a business that is committed to improving the world and showing a strong sense of purpose will make their employees inspired, motivated and loyal that can increase employee engagement and retention.

increase community engagement and customer loyalty

Today, the competition in the business world is stiff, and it can be quite challenging for a company to set itself apart in the eyes of customer. Howerver, embracing ethical practices goes a long way toward attracting and retaining customers because if customer feels like they are living out their values by supporting a certain business, they are more likely to stick with the brand.

Improve customers’ perception and brand recognition

By doing social responsibility practices, it can help people to see the company as a positive force in society. The projects that the company take on can help raise awareness for important causes and keep their business top of mind. Therefore, by doing these ethical practices more people will hear about the brand, which creates an increased brand awareness.

In conclusion, corporate social responsibility is a vital element for any business to be successful. Companies making profits at the expense of the environment, society, economy, consumers and employees is not what it makes it successful. Rather, companies should consider how they can give back to society, and this can help them attract customers and keep their best employees. Companies should also make sure that they uphold high standards of ethical conduct and incorporate the same in their policies for easy administration of ethical behavior. This is because ethical behavior has a lot of advantages and benefits that work for the good of any business organization. It can be concluded that social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all business.

Chris B. Murphy. Investopedia. Why Social Responsibility Matters to Businesses. Updated March 24, 2022 from https://www.investopedia.com/ask/answers/041015/why-social-responsibility-important-business.asp#:~:text=Social%20responsibility%20programs%20can%20boost,increase%20customer%20retention%20and%20loyalty.

Ellie Collier (2018). High Speed Training. The Importance of Corporate Social Responsibility for Your Business from https://www.highspeedtraining.co.uk/hub/importance-of-corporate-social-responsibility/