Have you heard the saying “you reap what you sow”? Well, this applies quite well to Corporate Social Responsibility. Also known as CSR, it is a term that has been very present in corporate culture lately. In simple words, They are actions that companies carry out to affect society and the ecosystem as little as possible, while seeking the common good of those around them.
But, what are the benefits of Corporate Social Responsibility? Mainly, the organization will be able to improve its reputation. Something very important, since this affects different aspects. However, before that, it is important to know what Corporate Social Responsibility is in detail.
What is Corporate Social Responsibility?
Corporate Social Responsibility, or CSR by its initials, is a set of actions carried out by organizations to carry out their economic activities without harming their social and environmental environment. There are three major actors that have special relevance: companies, the environment and people.
In simple words, Corporate Social Responsibility is a system of business self-regulation that seeks to ensure that institutions consciously meet their objectives, always prioritizing the common good.
Applied with a good approach, CSR can profoundly benefit the reputation of companies. Here we tell you how.
Benefits of Corporate Social Responsibility
At first glance, wanting to improve an organization's reputation may seem superficial. However, if applied correctly, corporate Social Responsibility can even impact society and the environment. According to what is indicated by the portal Business News Daily, CSR can:
- Improve the perception of your brand: Having a good image in the market is important so that your audience is represented by the values you transmit, beyond those of your product or service. With this, it is possible for you to stand out from the competition for characteristics such as environmental, social or labor awareness, among many others. According to the study of Kantar Purpose 2020 cited by BND, there is a direct correlation between the good perception that a brand has and the growth of its value. This will increase its valuation by 175% in 12 years.
- Better attract and retain the talent of the future: Business News Daily indicates that, according to Deloitte's 2021 Millennial and Gen Z survey, new generation talent values culture, impact and diversity over economic benefits. The survey estimates that almost half of Generation Z decide their employer based on their personal ethics. Added to this is that according to Porter Novelli's Purpose Tracker 2021 report, 70% of those surveyed would not work in a company without solid purposes.
- Increase the valuation of your brand to obtain more financing: Investors know that Corporate Social Responsibility initiatives make organizations more competitive, which is why they see more growth potential for their actions. A company that invests in CSR demonstrates an interest in generating sustainable development over time to obtain profits in the short and long term. For this reason, it is important to measure and deliver data on this matter to investors, such as ESG scores on the environment, social impact and governance, or sustainable development objectives.
Now, with what actions can you launch a Corporate Social Responsibility plan? Keep reading to learn about different aspects and practices in which you can apply CSR.
Examples of Corporate Social Responsibility
CSR, as we saw previously, involves 3 important actors, which are companies, the environment and people. Each of these represents three dimensions, such as economic, ecological and social, respectively. That said, it is important that Social Responsibility is applied in each of them to have a triple bottom line approach.
To achieve this triple bottom line approach, specific actions must be carried out in each dimension. Below, we leave you examples that you can apply to develop a Corporate Social Responsibility strategy.
Economic examples of CSR
On an economic level, the main guideline is to be a fair company. By this we mean that it is important to respect the legislation of each country in which activities begin, and along with this, be as transparent as possible regarding the financing of organizations. Below, we leave you some examples of the economic dimension:
- Apply anti-corruption protocols.
- Respect lobbying laws.
- Prepare periodic transparency reports.
- Pay equity between men and women.
- Sell at fair prices.
- Have clear anti-collusion policies.
Green examples of CSR
The ecological pillar of Corporate Social Responsibility focuses on trying to damage the environment as little as possible, as well as trying to repair the negative effects that the execution of its activities may produce. Below, we share some examples of CSR actions in their ecological dimension.
- Use of clean or renewable energies in production plants.
- Prioritize local suppliers to reduce the carbon footprint in transportation.
- Promote recycling in company facilities.
- Reforestation in surrounding sectors.
- Encourage clean means of transportation.
- Review and rethink the waste management system.
Social examples of CSR
The social pillar of Corporate Social Responsibility is one of those in which you will see changes most quickly. This dimension directly influences the organization's workers, their families and the communities that surround the company's facilities. Below, review the examples of CSR actions in the social aspect:
- Encourage fundraising for charitable organizations.
- Worker training and surrounding communities.
- Open job vacancies for people with disabilities,
- Promote the development of internal communication.
- Sports championships.
- Educational scholarships for outstanding students.
These are just some examples of the many actions you can promote in your organization. However, always remember that each one must be aligned with the context and objectives of your business. With this we want to tell you that you must, above all things, maintain honesty with the public and your brand. Seek to add and strengthen values that make sense with your mission, so that CSR can be implemented naturally and truly generate the effect you are looking for.