Corporate Social Responsibility: What You Should Know
May 16, 2021 1974 Views
Do businesses care about creating a more sustainable society? Most likely, the first answer that comes to mind is no, but to what extent is this true?
Read through this article to answer the question, know what Corporate Social Responsibility is, and why do most of the biggest companies choose to adopt it into their businesses.
What is Corporate Social Responsibility (CSR)?
Now more than ever, our world is facing numerous global issues that have a direct or indirect impact on all of us; climate change, hunger, poverty, gender inequality, education, etc. It became mandatory for all actors in society, including businesses, to take an active part in enacting positive change.
There is increasing pressure for companies to adopt Corporate Social Responsibility as a business discipline. The goal of CSR is to achieve economic growth as a company while ensuring social justice and environmental preservation. Businesses’ strategies should respect their stakeholders (shareholders, employees, customers, suppliers, and local communities), and minimize their negative impact on the planet.
Ways of practicing CSR differ from one business to another. In fact, CSR promotes innovation by improving the flexibility of the firm in the reallocation of resources and capabilities and helping generate fresh and valuable ideas for new strategies to address global issues.
Pros of Being a Socially Responsible Company
1. Gaining a Competitive Advantage
CSR can help a company gain a competitive advantage by having the reputation of a socially responsible firm. The company will be more accountable and transparent in the eyes of the public; thus, it will gain the trust of its stakeholders.
Nowadays customers are aware of the global issues and are trying to be effective in treating them. They're more likely to purchase goods and services from socially responsible companies as a way of encouraging them to carry on with their policy.
In the long term, adopting a CSR policy will have a remarkable boost to sales.
2. Enhancing the Ability to Recruit and Retain Staff
Having a corporate culture that supports CSR within the company will motivate workers to stay and will enhance their performance. Employees will be driven by pride and will have a sense of belonging which is fueled by accomplishments and the positive impact that the company has on its environment.
Added to that, the firm will be more attractive to talents and will be able to recruit talented workers easily.
In the long run, this will save money that is usually spent on recruiting and training new employees and will create a prideful atmosphere.
3. Enhancing Relations with Customers
A socially responsible firm gives back to its community and has a positive impact on society which creates a trust bond between people and the company.
Loyalty will be generated from this relationship and will transform customers into loyal customers that will stick with the company’s services and won’t seek other providers.
Endorsing CSR as a business discipline will eventually increase brand recognition and customer loyalty.
TBS Junior Enterprise as a Socially Responsible Firm
In TBS Junior Enterprise, we recognize the importance of Social Responsibility. It’s our responsibility to serve and positively contribute to society. That’s why we took an active part in helping our country during the COVID-19 pandemic by conducting thorough research on the impact of the sanitary crisis on businesses and on consumer behavior to provide more information for decision-makers to make better decisions. You can find more details about the study by visiting this link. (The passcode is tun20)
This year, we are conducting a study that aims at helping high school graduates make the most suitable decision for their educational ambitions.
Usually, students don’t get the help and advice they need before choosing their future field of study; little to no information about the different fields in different universities is shared with them. In this context, we’re studying the efficiency of the old adopted methods of sharing information and we’re looking for better alternatives to improve their efficiency.
Our team is currently working hard on this study, stay tuned for the results!
To sum up, no business exists in isolation. Every business organization operates in an environment with which it interacts. No organization can survive in the absence of an environment. That's why businesses should also seek the welfare of the society and contribute to making its environment a better place to live.