Five Simple Reasons Your Business Will Profit from CSR

Victoria Harres Victoria Harres is VP, Audience Development & Social Media at PR Newswire, a UBM company. She leads various social media and audience efforts at PR Newswire and 'proudly' coordinates social media and the blog for Business4Better.
About Victoria Harres (22 Posts)

Corporate social responsibility (CSR) is quickly becoming a term that cannot be left out of the conversation when planning a company’s future. And that goes for all companies, no matter what the size.

CSR is not just for ‘corporations.’

Employees, customers and investors are making choices that give preference to businesses that have a positive impact on the communities they live, work and do business in. And that will impact your bottom line.

Here are five very basic reasons your business will profit by considering your social responsibility:

1.  PR: Simply put, genuine CSR efforts make your company look good. If shared appropriately through traditional and new media channels, CSR becomes an opportunity to shape positive public opinion about your business. It certainly is easier to navigate a PR crisis (everyone has them at some point) when you are already perceived as a company that has a positive impact in the communities you do business in than starting from a neutral or negative position.

2.  HR: People like to work in environments that make them feel like they are part of something good. This is especially true for the youngest generation entering the workforce. Millennials don’t see social responsibility as an option. They expect it from their employers, and the more talented the individual, the more likely they will not join or stay with a company that isn’t actively giving back. Talent from all generations feel better about whom they work for if they see their employer giving back. Especially when the employer organizes employee involvement. The positive effects of giving is much greater on the giver if they are handing a hungry person a plate of food rather than simply writing a check or being told their employer wrote a check.

3.  Marketing: CSR can be an opportunity to co-promote both a nonprofit and a for-profit business, with both benefiting. Through cause marketing you can tell impactful stories which are much more likely to inspire sharing than traditional advertising, and it can create vocal brand ambassadors who champion both your business and the cause you are aligned with. Win, win.

4.  Sales: Your employees and your current customers are more likely to promote your products and services to their networks if they feel good about the ‘good’ you’re doing in the community.  Word of mouth has always been important to sales and never has it been easier for people to share with their friends and colleagues than now. It can be as easy as a ‘share on Facebook’ or ‘click to tweet’ buttons. But first you have to inspire them to do that.

5.  IR: More and more investors are requesting to see a company’s CSR report. Why? Note all the above. Investors care about a company’s future. They want assurance that a company is well placed to grow, and that means: retaining top talent, managing public sentiment, inspiring strong brand ambassadors, and exploring new methods to foster sales growth.

Need more convincing? Read 19 Compelling Business Reasons for Corporate Community Involvement by Bea Boccalandro.

If your company hasn’t formalized CSR initiatives, hasn’t figured out how to justify the time spent, or you need help determining what to measure, come join us in Anaheim, California,  May 1st and 2nd. We’re bringing together top thought-leaders like Dev Panaik, Carol Cone, Susan McPherson, Chris Jarvis, Neil Bush and many more speakers to help all of us understand better the positive impact CSR can have on our bottom line.

2 thoughts on “Five Simple Reasons Your Business Will Profit from CSR

  1. Pingback: Shared value: Going beyond traditional CSR | Business4Better Blog

  2. This are great points about corporate cause promotion and CSR. I totally agree with you by saying that CRS is not only for big corporations this days, but any business sees this in the future planning. I also believe that medium and small businesses need better survival tactics to compete with bigger brands, and yet, the new generations are putting an example by creating a culture out of sustainability and social responsibility with themes, tactics and actions. Been social responsible used to be seen as an additional cost to the company, it is now that we can pare win- win situations and work around it with better planning between profit and non profit organizations. CSR is no longer only about tax reductions, but it is also about the other points you mentioned; I liked your point 2 especially, HR.
    Yes, it seems that this is a society that is turning more violent and poor, action is needed from everyone. I think it is time for the people to ask more from certain big corporation and the government too. Laws should start changing a little more aggressively towards asking or demanding social responsibility and the control between the levels of PR, marketing, sales, IR and the contributions to society given, besides the common fact of employment. It seems companies want to change their culture, but many want to decide when and how and if, and that is just plain wrong. Everything is possible with planning but many have not even started
    I finish by saying that while the motivation # 1 for CSR is marketing and sales, it should not be and this is an example that we see more and more from medium and small businesses compared to big ones at scale.
    If this country is not willing to evolve their ways and mentality by been part of many changes and treaties such as Kyoto (environmental for example) as a process, like many other countries with less resources have, there will be not much we can ask other for in the future and nor ourselves. The change of mentality comes first before commitment.

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