“The wise man does not lay up his own treasures. The more he gives to others, the more he has for his own.” — Lao Tzu
Today’s customers dominate the corporations that make products or develop services for them. The present customers seek something beyond top notch commodities and services while they make a purchase. They’re preferring organizations which take initiative towards corporate social responsibility (CSR) for the benefit of the society and work for bringing social change along with their business practices. The present consumer wants to know the procedure of the production and the associated conditions, wanting assurance that the workers were not put in inhumane conditions. A significant number of organizations are engaged in creating awareness amongst customers to not only invoke a sense of “moral buying”, but also encourage them to only buy from an organization that shares their morals. To emphasize how pivotal CSR has become, a 2017 study shows that 60% of US population count on the business organization to push towards positive social and environmental change in absence of government regulation, 87% said they will consume a product from a company if they advocate for an issue they cared about, and 78% wish organization would focus on important social issues.
This states the influence an organization's approach and initiatives towards CSR and social welfare can have on their consumer base and public image. It's not only the consumers, companies with extensive CSR initiatives tend to attract highly talented people to work with them with more ease. In the current situation of social and environmental awareness, it's crucial for a company to involve in social welfare and environmental sustainability to be in consumer’s good books.
A question emerges that which company should take initiatives towards CSR? The answer is as uncomplicated as it could be. The rules and regulations are different nation by nation but it’s more of moral and ethical beliefs that an organization should possess to take extensive part in social welfare through CSR initiatives. If you are benefiting from a particular nation, community, state or a town it’s the beneficiary’s moral responsibility to give something back to help social welfare and other causes and improve the life of others. The organizations themselves have some remarkable benefits taking part in CSR initiatives, some of them are worth mentioning -
1. Capability to have a positive effect on the community.
Keeping social welfare on top of mind urges organizations to act morally and to think about the social and environmental effects of their business. In doing same, an organization can alleviate inconvenient effects of their business on the community.
2. It encourages cost savings.
One of the most straightforward ways for an organization to begin participating in sustainability is to utilize it as an approach to cut expenses. Regardless of whether it's utilizing less packaging or less power, these savings increase rapidly and lead to a long-term change.
3. It Increases sales and customer loyalty.
A number of studies have proposed a vast and developing business sector for the items and services of organizations which are ethical and sustainable in their way of production. While organizations should first fulfill clients' key purchasing criteria, studies suggest that there is a growing desire for ethically produced products which are sustainable and don't have a harmful effect on the environment.
There are various other ways an organization could benefit from CSR, most of the new age big organization such as Microsoft, Google, Amazon, and others are taking numerous initiatives around the globe to eradicate issues as poverty, hunger, water scarcity and others. There are numerous people who have benefited from these CSR initiatives, these could be a perfect example for other organizations to get involved in social welfare and sustainability.
(Image source: Cartoon Watch & India CSR)