What Is Corporate Social Responsibility?
Corporate Social Responsibility (CSR), is a relatively new term, having really only appeared and put in practice within the past 20 years or so. Over the course of the past 20 years, CSR has evolved considerably. In the early days of corporate social responsibility, it was primarily a practice of donating money and following regulatory requirements.
In recent years, CSR has expanded beyond transactional processes like corporate granting and sponsorship to more developed and involved initiatives such as employee volunteer programs, financial literacy workshops, and employee resource groups. Now we're seeing businesses actually using business as a force for good, and benefiting from it (more on that later!).
Now that CSR has become a growing area of investment and importance for companies, we're seeing that CSR has shifted to encompass ALL the great things your company, and the individuals within it, are doing to create positive change for their communities, customers, colleagues, and the planet as a whole.
The Corporate Social Responsibility space is filled with buzzwords, jargon, and acronyms, which can make it difficult for people to understand. To be honest, CSR quite simply is businesses taking positive action, to create meaningful change. Just like we have personal responsibilities, corporations are now being held to a set of standards as well.
Why Does Corporate Social Responsibility Matter?
People care more than ever about the impact that companies are responsible for creating in the world- both good and bad. Where businesses used to be defined solely by the product and services they offered, they are now defined by how they do business as well. It may sound cliché, but companies can, and are doing well, by doing good. In fact, in order for companies to remain relevant, sustainable, and competitive they have to consider their corporate image and social stance- and there is plenty of research to back this!
Consumers are more likely to purchase from you if your company is conscious of their impact and how you give back. According to a Cone Communications study, nearly 9 in 10 Millennials's would switch brands to one that is associated with a good cause, given similar price and quality. This goes for B2B companies as well- as a supplier, companies will ask where you source your materials as well as how you manufacture your goods. The value of your CSR efforts could be what maintains consumer loyalty and wins you that next big contract.
Cone Communications also found that employees want their company to provide opportunities for them to help make a positive impact on the company’s social and environmental commitments. This is great news! your employees actually want to contribute, why not provide them with the opportunity?
When you think of the "Best Companies To Work For" awards, what are the criteria that these organizations are graded upon? If you take a closer look at the programs they offer, they primarily have to do with doing good and creating positive change.
Example: According to the Fortune Great Places To Work Survey, the number 1 company with a 94% approval rating from employees was Salesforce.
97% of employees said they felt good about the ways the company contributes to the community, and 95% of employees said that people care about each other there. This goes to show that your Corporate Social Responsibility initiatives create a magnetic workplace culture.
Contrary to what many believe, today's workforce is seeking more than a paycheque and a ping pong table from their employers. According to research conducted by Cone, 76% of millennials indicated that they would choose to work for a socially responsible company, even if the salary was less. Employees are attracted to companies that align with their values and offer them opportunities.
We know consumers are interested in supporting responsible brands with their wallets, so it makes sense that they are investing their savings in responsible companies as well. As socially responsible investing (SRI) becomes more prevalent, there are more and more funds arising that are comprised of companies that are actively practicing Environmental and Social Governance (ESG). If it's It's also been shown that companies that invest in Environmental and Social Governance (ESG) are producing better returns.
So, if your Corporate Social Responsibility efforts could be what lands your company new business, an engaged employee, a new hire, heaps of investors and earned media- it's definitely a value add. Having said this, it's important that you invest in CSR properly. Just like any department in a business, if the activities aren't strategically aligned and invested in, they won't deliver the results that they are capable of producing.
Turning Purpose Into Action, With Porpoise
By engaging employees through socially responsible programs, you can create a magnetic culture that attracts and retains top talent while producing financial and social returns. From workplace events to employee engagement programs, porpoise is a place to host and manage all the great things your company is doing both in and outside of the workplace.
Transform Your Workplace Culture
Statistically speaking, between 40 and 50 percent of the people in your office are looking for a new job at this very moment, and only 13% of today's workforce is engaged. How can you create a workplace that puts a stop to this disheartening trend?
Porpoise was created as the first platform built with both employee experience and corporate goals in mind. On Porpoise, companies are able to work toward individual and group goals that achieve positive change both in and outside of the workplace.
Porpoise offers one simple, effective platform that allows you to:
- Build or host inspiring events and goal-based challenges
- Connect and engage employees
- Report on key metrics
- Share your impact stories internally and externally
Interested in learning more? Book a discovery call to today!