Corporate Social Responsibility (CSR) is when a company operates in an ethical and

sustainable way and deals with its environmental and social impacts. This means a careful
consideration of human rights, the community, environment, and society in which it operates.

This article outlines the importance of corporate social responsibility, and the benefits that
sustainable and ethical practices can bring to your business.

Importance of Corporate Social Responsibility

It’s incredibly important that your company operates in a way that demonstrates social
responsibility. Although it’s not a legal requirement, it’s seen as good practice for you to take
into account social and environmental issues.

Social responsibility and ethical practices are vital to your success. The 2015 Cone
Communications/Ebiquity Global CSR study found that a staggering 91% of global consumers
expect businesses to operate responsibly to address social and environmental issues.
Furthermore, 84% say they seek out responsible products wherever possible.

As the above statistics show, consumers are increasingly aware of the importance of social
responsibility, and actively seek products from businesses that operate ethically. CSR
demonstrates that you’re a business that takes an interest in wider social issues, rather than just
those that impact your profit margins, which will attract customers who share the same values.
Therefore, it makes good business sense to operate sustainably.

Benefits of Corporate Social Responsibility

The benefits of CSR speak volumes about how important it is and why you should make an
effort to adopt it in your business.

Some clear benefits of corporate social responsibility are:

 Improved public image. This is crucial, as consumers assess your public image when deciding
whether to buy from you. Something simple, like staff members volunteering an hour a week at
a charity, shows that you’re a brand committed to helping others. As a result, you’ll appear
much more favourable to consumers.
 Increased brand awareness and recognition. If you’re committed to ethical practices, this
news will spread. More people will therefore hear about your brand, which creates an increased
brand awareness.
 Cost savings. Many simple changes in favour of sustainability, such as using less packaging,
will help to decrease your production costs.
 An advantage over competitors. By embracing CSR, you stand out from competitors in your
industry. You establish yourself as a company committed to going one step further by
considering social and environmental factors.
 Increased customer engagement. If you’re using sustainable systems, you should shout it from
the rooftops. Post it on your social media channels and create a story out of your efforts.
Furthermore, you should show your efforts to local media outlets in the hope they’ll give it some
coverage. Customers will follow this and engage with your brand and operations.
 Greater employee engagement. Similar to customer engagement, you also need to ensure that
your employees know your CSR strategies. It’s proven that employees enjoy working more for a
company that has a good public image than one that doesn’t. Furthermore, by showing that
you’re committed to things like human rights, you’re much more likely to attract and retain the
top candidates.
 More benefits for employees. There are also a range of benefits for your employees when you
embrace CSR. Your workplace will be a more positive and productive place to work, and by
promoting things like volunteering, you encourage personal and professional growth.

Benefits for Corporate

• Improved financial performance – if the organizations start sustaining with the

resources it means they would be spending less which would

• Lower operating costs- Operating (Operational) costs are the expenses which
are related to the operation of a business, or to the operation of a device,
component, piece of equipment or facility. They are the cost of resources used
by an organization just to maintain its existence.

• Enhanced brand image and reputation-

• Increased sales and customer loyalty-

• Greater productivity and quality

• More ability to attract and retain employees

• Reduced regulatory oversight

• Access to capital

• Workforce diversity

• Product safety and decreased liability

Benefits to THE COMMUNITY AND THE GENERAL PUBLIC

• Charitable contributions

• Employee volunteer programs

• Corporate involvement in community education, employment and

homelessness programs

• Product safety and quality

Environmental Benefits

• Greater material recyclability

• Better product durability and functionality

• Greater use of renewable resources

 • Integration of environmental management tools into business plans, including
life-cycle assessment and costing, environmental management standards, and
eco-Labeling.

Scope of CSR

These initiatives can include

1. Eradicating hunger and poverty

2. Promotion of education

3. Promoting gender equality and empowering women

4. Reducing child mortality

5. Combating the human immunodeficiency Virus, AIDS, Malaria and other diseases

6. Ensuring environmental sustainability

7. Employment enhancing vocational skills

8. Social business projects