Social Responsibility is the responsibility towards society that organizations must give importance to because in doing business, whether it is producing goods or providing services, it must take into account the impact on society and the environment, including ethics and transparency in doing business.
Companies big and small across the market are increasingly focusing on their social responsibilities, whether it’s supporting women’s rights, protecting the environment, or trying to eradicate poverty at a local, national or global level. Whatever the cause of this sense of responsibility, what companies are definitely gaining is a more appealing image for both consumers and shareholders, which will certainly have a positive impact on their bottom line.
“Social responsibility drives long-term success.”
Embracing socially responsible policies helps attract, retain and build brand loyalty, which is essential for a company’s long-term success. Plus, many people are willing to pay more for products when they know that a portion of a company’s profits are going to philanthropic causes near and dear to them.
Examples of activities or projects that drive Social Responsibility that are commonly found today include:
- Reducing carbon footprints
- Improving labor policies
- Participating in fairtrade
- Diversity, equity and inclusion
- Charitable global giving
- Community and virtual volunteering
- Corporate policies that benefit the environment
- Socially and environmentally conscious investments
“Accountability is a tool to increase engagement among employees in an organization.”
This may not be a direct benefit of being socially responsible, but social responsibility is a powerful tool for increasing employee engagement. Companies can engage employees with a passion to make a difference in the world that goes beyond just working for a paycheck each month. Large companies are strong in numbers, and the combined efforts of their employees can achieve tangible results that boost workplace morale and increase productivity.
“Clear goals can be translated into motivation for employees.”
According to Harvard Business School, nearly 70% of employees said they would not work for a company with unclear career goals. 90% of employees who work for companies with clear career goals said they were more inspired, motivated, and loyal to their company. And 92% of employees who work for socially responsible companies said they were more likely to recommend their employer to others who are looking for a job. Employee engagement directly impacts a company’s overall performance and profitability. Employee engagement also contributes up to 21% to profitability and is 41% less likely to be absent from work.
“Social responsibility is the company’s main platform for connecting with consumers.”
Social responsibility works as a platform or space for companies and consumers to make a positive impact on local and global communities. It also provides a space for companies and consumers to communicate.
Therefore, businesses that implement social responsibility initiatives that align with their values have the opportunity to increase customer retention and loyalty. Research shows that 87% of American consumers are more likely to purchase products from companies that support causes they care about, and 76% would refuse to purchase products if they found out the company supported causes that conflicted with their beliefs. For example, Tesla Inc. (TSLA) CEO Elon Musk has successfully attracted environmentally conscious consumers with cutting-edge electric vehicles and eco-friendly automotive products.
How can companies become more socially responsible?
Even the smallest initiatives can have an impact on the community. Donating money or resources to a charity can make a huge difference. A company can start by hosting a small fundraising event, encouraging volunteerism, setting a clear social mission and goals, running an educational program for employees, or joining forces with like-minded businesses.
Conclusion
Socially responsible companies are able to cultivate positive brand awareness, increase customer loyalty, and attract top employees. These elements are among the keys to achieving increased profitability and long-term financial success.
You can start your long-term success simply by starting to realize the social responsibility that your company should have. Help your employees use the company’s resources to do good for society and make the most of it. Set clear goals about your company’s desire to help society to attract employees, business partners, or other like-minded companies to help promote this goal.
Not only will your company be helping society, but social responsibility can boost employee morale in the workplace and lead to greater productivity, which in turn affects the company’s bottom line.
“Small investments in corporate social responsibility initiatives can increase employee engagement and impact a company’s bottom line.”
Reference:
Why Social Responsibility Matters to Businesses
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