Why is CSR important for Business?

CSR as a practice is today highly popular and widely practised by the organisations of all the countries
around the globe. These exercises have been the extremely motivating source for many customers to
continue taking the practises of their favourite brands. This further helps the companies sustain their
connection with the customers and redesign its positive brand image in their mind.

 Highly effective branding tool

CSR is considered to be one of the most effective tools of branding. Its magnitude is far reaching, due to
which it produces better benefits for the company in terms of financial gains as well as forming a strong
public image. There are various types of CSR, which is why it becomes even more convenient for brands to
strategise accordingly and magnify its effect.
 Reaches out to potential customers
As a result of the increased magnitude, the companies get the opportunity to expand its reach to potential
customers. Other than using the cold calling or relative business development techniques, CSR proves to be
an adequate and simple method to build business. This happens much because of the positivity that is
created by the CSR activities, carried out by the companies.
 Cost effective
The Corporate social Responsibility campaigns a set of designed works, more in the form of a Public
Relations activity, as it employs the involvement of both the internal and the external public. Moreover, it is
not carried out in a direct advertisement method and its purpose is associated with a social cause. Moving
further, the models for the campaign are the actual volunteers, who do not need to be paid, but willingly take
part in the CSR activity, due to the authenticity of the purpose associated with it.
 High involvement of employees
CSR over the time has proven to be an adequate employee engagement tool. It is by the virtue of this
socially engaging tool, that employees of the company, themselves wish to become a part of the endeavour
and support the organisation in the respective way. In fact, the employees feel an inner satisfaction when
they get involved in such CSR activities, which becomes a significant reason for their long term association
with the company.
 Inquisitive and proud customers
When a customer gets to see his brand being associated with a social/ ethical or environmental cause, then it
fills him with pride. He experiences a sudden surge in his emotions towards the brand and his inclination to
the CSR activity increases even more. This pride of the customer, benefits the brand in the form of ‘Word
Of Mouth’ publicity, which further acts as a great source of growth for the brand and the company.
 Increases brand loyalty
Further to the above step, when the customer gets introduced to the social benefitting side of his brand, then
his loyalty towards the company increases all the more. In fact he becomes a fan of the product and signs an
invisible consumer bond with the brand. Such is the power of the CSR that it can move mountains and draw
even the toughest crackable clients closer to the final step of product purchase.
 An effort towards environment change
Last but not least, the strategy of CSR helps the company to play its part towards the betterment of the
society around. It brings a lot of positivity and contentment in the internal working environment of the
organisation and even spreads the same optimism outside the company’s reach.