When you think of a successful business, what do you see? You probably picture massive profits, extensive product lines, a loyal customer base, and a team of highly productive employees. However, there is more to a successful business and consumers are continuously expecting more from the brands they choose to do business with. Consumers want to know that the brands they are buying products from are making a positive impact on their community through their business operations. This can be reflected in a company’s mission and its CSR efforts.
What is CSR?
Corporate social responsibility (CSR) is a hot topic these days. It’s the idea that businesses have a moral obligation to do good, not just make money. That means going beyond just following the rules and actually doing things that help society and the environment. It may not seem attractive or even worth the effort to most business owners, especially if they lack the time and funds to take action. However, there are countless benefits of prioritizing CSR in your business operations and many ways to take action. To initiate a CSR effort means a company is operating in a way that helps society in some way. There are many different ways a company can participate in CSR, meaning even smaller businesses and start-ups can find creative ways to make a positive impact on their communities.
Why is CSR important?
There are many benefits to focusing on CSR, and in today’s highly competitive business environment, their many consequences of not participating. Social responsibility has grown in popularity among consumers, especially younger generations of consumers, and is crucial to building a loyal, engaged customer base. Not only is it important to consumers, but it’s important to potential employees as well. When a business is clearly focused on more than just profits, it can build a better reputation and attract more customers and top talent for its team. It ensures a company is doing more than just making money. Some other benefits of CSR include:
- Improved brand image and reputation
- Higher productivity, cooperation, and engagement from employees
- More attractive to investors
- Reduced risk of lawsuits, litigation, or other negative legal consequences
Types of CSR
There are four main types of CSR, and while a business can choose to participate in all four, it’s not necessary to make a positive impact. Some great examples of practicing CSR can look like supporting local charities, reducing pollution, and treating employees well. However, companies can also consider different forms of CSR, such as diversity and inclusion, governance, well-being, and employee engagement. It’s important to stay consistent with your mission and make sure your CSR initiatives are relevant to your industry.
Environmental Responsibility
Environmental responsibility is the most common CSR category, focusing on the environment and the well-being of nature. The mission is to not only leave the environment in better condition than before operations but to help counteract the negative effects from previous business operations that weren’t environmentally responsible. Companies can practice environmental responsibility through:
- Reducing pollution, waste, and emissions from manufacturing processes
- Cutting back on natural resource consumption
- Replenishing natural resources
- Choosing manufacturing methods and materials that have less negative consequences on the environment
- Promoting products that support and encourage environmental responsibility
- Supporting causes that help counteract the negative impacts of corporate pollution and emissions
Ethical Responsibility
Environmental responsibility is the most common CSR category, focusing on the environment and the well-being of nature. The mission is to not only leave the environment in better condition than before operations but to help counteract the negative effects from previous business operations that weren’t environmentally responsible. Companies can practice environmental responsibility through:
- Equal treatment for customers of all races, religions, genders, and cultures
- Clear and honest marketing promotions for products and services
- Expanding to different vendors and supporting businesses of all statuses
- Fair treatment and opportunities for employees and improving things like pay and benefits
Philanthropic Responsibility
Philanthropic responsibility focuses on contributing to society in some way and how a company spends its resources to make a difference. Companies can practice philanthropic responsibility through:
- Donating profits to a charitable organization or other cause
- Choosing to do business with vendors who align with its philanthropic values
- Sponsoring events and causes that align with its valuess
- Offering employees philanthropic opportunities
Economic Responsibility
Economic responsibility focuses on how a company utilizes its profits to be more socially responsible. A company can establish plans and programs to be more environmentally, philanthropically, or ethically responsible, however, it must first invest and develop those plans and programs. A company can invest through:
- Researching and developing new products that focus on sustainability
- Establishing programs that educate employees about societal and environmental concerns
- Switching to more sustainable manufacturing methods
- Improving employee well-being and productivity with new equipment and technology
Getting Started with CSR
Establishing a CSR initiative within an organization can seem daunting and overwhelming, so keep in mind these three tips:
- Stay consistent with your mission
- Choose initiatives that are relevant to your industry
- Start small, build big
It’s crucial that your CSR efforts make sense for your business. Your time and hard-earned money will be going into this, so make sure it’s relevant to your mission and something you truly care about. It’s easier to just start with one initiative than to go for multiple, especially if you are a smaller business. Then, once you’ve effectively established one initiative, you have a solid foundation to build on. Every business can make a positive impact, it may just take some creative thinking to accomplish.
Oyster Shell Strategy can help you plan and execute your company’s CSR initiative by helping identify relevant causes within your industry and assist in the strategy and implementation of the initiative. We help companies reach their goals, and if your company’s goal is to make a positive impact, we can help accomplish that.