Corporate Social Responsibility Explained
While profitability, growth rate, and brand recognition are all important when it comes to business, they aren’t everything. These days, a company is just as likely to be judged by how it impacts the community, the environment, and society. This means that modern businesses need to care about the greater good and not just how much money they make or how much they are growing. In other words, they need to show some corporate social responsibility.
What Is Corporate Social Responsibility?
Corporate social responsibility is a type of self-regulation in which businesses aim to be more socially accountable and make a positive impact on society. That might include being more environmentally conscious and running a “greener” office, promoting diversity and equality in the workplace, giving back to the community through donations and charity fundraisers, and making ethical business decisions.
Corporate social responsibility is important for several reasons beyond objectively making the world a better place. First of all, it improves customers’ perception of a brand. Simply put, customers will be more likely to do business with a company that has displayed ethical business practices and is trying to be more environmentally friendly. Second of all, corporate social responsibility helps businesses attract and retain employees. People want to feel good about their jobs and their employer, yet this isn’t always a sure thing in the corporate world. If you can prove that your business is actively helping others and the environment, your employees will feel like they’re doing their part in that and be more willing to stick around for the long term. Finally, corporate social responsibility will make your business more attractive to investors, something that is essential if you want your business to take off.
So yes, corporate social responsibility is essential in today’s business world. The good news is that it isn’t that hard to implement social responsibility into your business’s culture. Your efforts should always be transparent to the general public and your employees. Decisions made behind closed doors will always be met with scrutiny, and the last thing you want is for your efforts to be seen as a marketing ploy. They need to be genuine attempts to be more responsible, not ways to increase your business’s bottom line.
For more information about corporate social responsibility and to learn ways for your business to be more responsible, contact Skogen Capital Lending today. We will be happy to answer any questions you might have.