Caring Business: Corporate Responsibility what is it and Why It’s Important

Nowadays more and more consumers are demanding more transparency and active involvement in tackling social, cultural and ecological issues from companies. Due to this, the role of corporate social responsibility (CSR) increases in the contemporary business world. Companies ignoring CSR are risking to lose the loyalty of customers as well as face the shortage of employees.

The purpose of the corporate social responsibility – positive impact on the community

For companies, business corporate responsibility means taking care of the impact of its activities. Thus, companies adapt their business processes to certain cultural and social problems in a way which contributes to their resolution. As a rule CSR models foresee the assistance to people with scarce or no resources. At the same time, CSR efforts usually go beyond the social impact and contribute to the development of companies’ businesses. Today the majority of global financial companies propose special conditions of loans provision to those enterprises which promote the implementation of the corporate social responsibility.     

Though, it’s important to understand that CSR isn’t charity. In case of proper implementation, CSR becomes an integral part of company’s values and of the corporate culture: it’s reflected in the mission and messages of the organization as well as widely represented in company’s marketing and advertising. In case a company is already implementing a corporate responsibility strategy, its further promotion will be exceptionally beneficial for the business.

By ignoring social responsibility, companies endanger their financial performance as well as the future value of their brand. Poor social and environmental reputation may have a devastating impact on the company’s profitability and success, as modern consumers want to buy products and services of those companies which share the same ethical values as they do.

The most famous companies in the world are actively implementing social responsibility practices

Within “5×20” CSR program Coca-Cola plans to employ 5 million females in the developing countries by the end of 2020. It will not only empower women in places where Coca-Cola production facilities are situated by will contribute to the development of their communities as well. With this program, the company strives to improve the education of all their employees as well as make medical services more accessible for everyone.

Visa cooperates with local authorities and NGOs in order to enable those people who didn’t have access to bank and financial services finally benefit from it. Bill and Melinda Gates Foundation established that it helps financially vulnerable people to better manage their finances during hard times, save money and integrate into the global community.

Millennials pay special attention to the corporate social responsibility of business  

The number of consumers who are part of Y and Z generations – millennials, increases every year. Care about social values is one of the key characteristics of millennials and as they are very tech-savvy they can easily verify whether a certain company practices CSR or not. Millennials consider the improvement of this world to be their responsibility that’s why they don’t want to deal with companies which don’t care about the environment and people.

For Y and Z generations’ representatives, the attractiveness of an employer depends on its level of social responsibility. According to the results of the Deloitte survey, 70% of millennials take into account company’s CRS policy when making a decision about employment. Very soon the majority of the workforce will be represented by millennials. Thus, CSR stops being a way of attracting the most talented employees and becomes an indispensable part of any business. Millennials don’t only want to consume products and services of companies practicing CRS, but also want to be a part of positive social and environmental changes.

Corporate social responsibility is no more a business-trend or requirement of regulatory authorities. Today it’s a must-have for any company striving to remain relevant for future generations as well as help people, increase its revenue and effectiveness.