All companies exist to generate revenue and create profit. But financial success is no longer enough. In today’s socially conscious world, business success is also measured in part, by an organization’s level of corporate social responsibility. We hear a lot about it these days, but what exactly is corporate social responsibility?
What is Corporate Social Responsibility?
The United Nations Industrial Development Organization defines corporate social responsibility or CSR, as how a company “achieves a balance of economic, social, and environmental imperatives. At the same time, it manages to address the expectations of shareholders and stakeholders.”
Turns out doing good for your community and the world, can also be good for your brand and your bottom-line. Research by Forrester shows “68% of US consumers say that a company’s social responsibility reputation has at least some influence on their purchasing with that company.” And a study by Nielsen found “55% of consumers will pay extra for products and services from companies committed to positive social and environmental impact.” Katie Schmidt, the founder of fashion brand Passion Lillie tells Business News Daily “What the public thinks of your company is critical to its success,” To stand out among the competition, your company needs to prove to the public that it is a force for good. Advocating and raising awareness for socially important causes is an excellent way for your business to stay top-of-mind and increase brand value.” One common type of corporate social responsibility marketing is environmental efforts.
Environmental Efforts
Study after study shows clients, employees, and prospective employees (especially millennials) care very much about a company’s carbon footprint. Toymaker Lego is taking an aggressive approach. The company is expected to invest $400 million over the next three years to accelerate its sustainability efforts. Coco Cola is another brand with a huge focus on sustainability. The company’s goal is to reduce their carbon footprint to 25% by 2030.
Non-Profit Partnership
Non-profit partnership is another popular corporate social responsibility marketing tool. In this type of philanthropy an organization teams up with the non-profit to make a long-term impact. Over the years, GDS Group has worked with non-profits such as Fiver and the CIP project in their combined efforts to make the world a better place.
Money & Product Donation
The most direct, and often utilized way to show your company’s support for a particular cause is by donating money. You can also donate products. Los Angeles based shoe manufacturer TOMS’s mission is to donate a pair of shoes for every pair they sell. That has resulted in the donation of over 100 million pairs of shoes to children in need. The company also assist the visually impaired by providing prescription glasses and medical treatments, provide ‘safe’ drinking water and build businesses in developing countries to create jobs.
There is no question it may require some initial upfront investment and donating to those in need, but it’s clear social responsibility in marketing promotes an elevated brand image, which can greatly impact your long-term growth.
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