5 Reasons Companies Prioritize CSR (Corporate Social Responsibility)

Corporate social responsibility (CSR) describes a business’s obligation to conduct its operations in a way that advances both the environment and society. It is based on the idea that businesses have not only economic responsibilities but also social and environmental responsibilities.

Corporate social responsibility (CSR) is mainly executed by the integration of social and environmental issues into a company’s business operations and interactions with stakeholders, including customers, employees, suppliers, and the wider community.

There are many reasons for an Organization to invest in Corporate Social Responsibility (CSR) Programs  – Let’s explore few of them in this post!

Builds a positive public image which in turn increases favorability among consumers.

In today’s commercial landscape, customers really care what kind of influence a company has on the environment and society.

The “Strength of Purpose” study, commissioned by Zeno Group, surveyed 8,000 global consumers and assessed 75 companies and brands. 

 Findings from the study indicate that when consumers perceive a brand to have a strong social purpose:

  • They are 4 times more likely to make purchases from the company.
  • They are 6 times more likely to defend the company in the face of criticism or missteps.
  • They are 4.5 times more likely to actively endorse and recommend the company to their friends and family.
  • They are 4.1 times more inclined to place trust in the company. 

A Company's CSR efforts receive positive attention with growing media coverage

A successful CSR project doesn’t end with implementation;  it requires effective communication to amplify its impact. Thus, a good PR campaign is required to ensure that your brand’s purpose is heard loud and clear by society. As a company’s CSR initiatives gain momentum, they become increasingly visible through expanding media coverage. This attention serves as positive reinforcement for the organization’s commitment to social and environmental responsibility. This not only enhances the company’s reputation but also encourages other businesses to follow suit by integrating socially responsible practices into their operations.

Consequently, the company’s CSR efforts not only benefit the communities and causes they support but also contribute to its overall brand image and standing in the eyes of the public.

Contributing to UN Sustainable Development Goals (SDG)

The SDGs are a set of 17 goals established by the United Nations in 2015 as part of the 2030 Agenda for Sustainable Development. The SDGs are designed by experts worldwide to fulfill the UN’s vision of a more sustainable, efficient, safe, and productive world by 2030. 

The success of Agenda 2030 globally will depend, in a decisive way, on the progress India makes towards the Sustainable Development Goals in the next few years. CSR projects are helping the government reach that goal.  

Meeting legal obligations, as mandated by Section 135 of the Companies Act, 2013.

Although CSR is voluntary, certain companies are required to comply with CSR provisions if they meet any of the following conditions in the preceding financial year:

Net worth exceeding – Rs. 500 crore
Turnover surpassing – Rs. 1000 crore
Net profit exceeding – Rs. 5 crore 

Standing out from competitors through community involvement

CSR initiatives can differentiate companies from their competitors by demonstrating a commitment to social responsibility. Companies that are seen as socially responsible are more likely to attract customers who share their values and are willing to pay a premium for their products and services.

Overall, Corporate Social Responsibility (CSR) is not just a moral commitment but also a legal one. It’s not just a business strategy; it’s a moral imperative that drives positive change and encourages a more socially responsible corporate culture.

To know more about CSR Benefits & Few Brand who excelled in their CSR strategies , you can read our previous article here

For any CSR consultancy services related queries, you can drop an email at info@emsinfo.in

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