People are now asking more and more questions as to how firms are manufacturing their products as well as wanting to know where the materials are coming from. Potential customers are now more likely to go with a supplier who has taken onboard corporate social responsibility.
Academic studies have shown that a company who operates directly with social responsibility are likely to do better in business than those that don’t.
“A 1997 DePaul University study found that companies with a defined corporate commitment to ethical principles do better financially (based on annual sales/revenues) than companies that don’t.”
Corporate Social Responsibility is still voluntary, yet as more people are becoming aware, they are interested in only purchasing products and supplies with firms that are actively practicing CSR.
The unfortunate thing is that a large percentage of firms believe that to integrate their business with CSR in mind would be too costly. However, this is a misconception.
Being aware of how we are affecting the environment, such as using too much water, leaving lights on, leaving windows open, not recycling or using un-recycled materials infact costs firms more than if they were to practice corporate social responsibility.
CSR is not a legal requirement; however it does have its benefits.
Taking responsibility on a company level for the environment shows credibility and can help a company’s reputation and build trust with their customers. Although this should not be the main reason for social responsibility, these are the benefits that are being put forward to firms who are not yet environmentally friendly.
To give an example of how CSR can affect a business, if a large company was looking around for a firm, who sells stationary to be their sole provider, yet they were only interested in recycled products, then immediately, all those that don’t offer recycled products have missed out on a potentially big client.
CSR gives a positive image to potential clients which considering business relationships. Social responsibility shows that you are aware of the changes in the environment and are taking positive steps to helping the economy.
CSR is not only something that businesses should be taking onboard for their customers, but also for their employees. Human rights and CRS go hand in hand.
All employees have the right to work in a safe and friendly environment. Managers and directors should take responsibility to ensure the safety of their employees. People have no desire to work in an environment that creates risk.
A recent study by the Cherenson Group showed that 78% of employees would rather work for an ethical and reputable company than receive a higher salary.
Creating a safe working environment attracts employees and increases productivity as taking responsibility for the environment encourages credibility and trust amongst staff.
Intigrating Corporate Social Responsibility into your business life helps your business, productivity and image as well as leaving your competitors behind who are not currently practicing CSR.
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