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Climate change and social welfare issues are driving consumers towards companies that adopt sustainable policies and ethical supply chains. Corporate Social Responsibility (CSR) is becoming more popular as a way to communicate social and environmental awareness to customers. With increasing competition and customer migration to online retail, CSR initiatives are a good way for a company to stay relevant. Embracing CSR can attract customers to your brand and differentiate your company from competitors.
In the eyes of consumers, corporate social responsibility is a significant contribution towards sustainable development and other important goals. Responsible companies improve their brand image facing competitors that are increasingly investing in CSR and sustainability. For employers, CSR efforts are vital contributors to attracting and retaining talent. CSR activities improve employee engagement and their self-identification with the company’s values.
CSR strategies are an investment that benefits the company, the employees, and the world.
They aim to benefit the greater community, create sustainable environmental practices, and improve the company’s public image. In a way, it’s like advertising. You’re demonstrating your company’s values to potential clients. In the long term, CSR can bolster a company’s image. Ideally, it can dovetail with your products and services and your marketing campaigns.
The automaker Subaru, known for marketing its vehicles with an adventurous, outdoorsy image, has several CSR campaigns that complement that image. Subaru was the first automaker to become zero-landfill in their production. They have also convinced 32% of their dealers to adopt more eco-friendly practices. Subaru of America raises money for and partners with organizations that align with its customer’s values. Donating money alone is not the same as a CSR campaign, but this example shows how philanthropy can play a role. Additionally, Subaru’s employees contribute volunteer hours to the local community (Camden, New Jersey), where their US headquarters are located.
Patagonia is a famous outdoor apparel retailer that is a pioneer in corporate social responsibility. They have donated over 185 million dollars to nonprofit conservation groups since the company was founded. Patagonia integrates sustainability into its product’s supply chain, including fair trade practices and environmentally responsible materials. This commitment requires a higher cost than conventional supply chains. Still, these CSR initiatives attract customers willing to pay higher prices. Beyond price tags, Patagonia’s example demonstrates how a corporate social responsibility attracts long-term customer loyalty from people who identify with the company’s values.
While sustainable practices can increase production costs, many customers who identify with sustainability are willing to pay more for this perceived added value. Toms Shoes increased the perceived value of their simple shoes by donating a pair to someone in need for each pair sold. This donation gives consumers the impression that their purchase is making a positive contribution to a social issue. Patagonia’s example proves that in the long run CSR programs increase bottom lines.
CSR programs help differentiate your brand from competitors. In a crowded marketplace, a well-constructed CSR program can make your product stand out to consumers. Aligning a CSR campaign with customer’s interests and values is a long-term investment in building a loyal customer base.
With more and more companies buying into sustainability and social impact initiatives, not investing in CSR could mean losing customers. Committing to goals like reducing your company’s carbon footprint has never been easier, thanks to increasingly affordable renewable energy and new technologies like ViiBE.
CSR initiatives are proven to reduce employee turnover dramatically. CSR not only communicates your company’s values with customers but also with employees. Since CSR initiatives often require employee buy-in, like volunteering or fundraising initiatives, your employees feel like they have a stake in your company’s efforts to make a difference.
KPMG reports that nearly 70% of the top 100 global companies are reporting on sustainability. As reporting this data in annual reports becomes more commonplace, and sometimes even mandatory, CSR initiatives are becoming more visible to investors. According to EY, investors are becoming increasingly sensitive to the long-term risks posed by climate change. These concerns are affecting their investment portfolios, with increased investments expected in the renewable energy sector. These trends enhance the existing benefits of investment in sustainable practices.
You can still make a positive change even if you’re not ready to make a significant investment in your company’s public image. Committing to the UN’s Global Compact is a great first step to demonstrate your company’s dedication to sustainability before deciding what specific policy choices are right for your company. Next, adopting ViiBE’s video call solution can save you money while reducing your company’s CO2 emissions. ViiBE’s software reduces the need for staff travel for remote visual inspections and virtual vehicle inspections, among other use cases.
Allianz Partners saved over 93,000kg of CO2 in the first year of using ViiBE. ViiBE’s download-free web app works on any device. With a simple web link, Allianz Partner’s clients can connect to a mechanic on their smartphone. This has reduced the need to dispatch tow trucks and has given customers peace of mind.
The next step beyond a CSR program is B Corporation Certification. B Corp certification shows a solid commitment to ethical standards by measuring the entire business’ social and environmental impact. While B corps are still allowed to make a profit, certification includes transparency and legal accountability standards, which require a serious commitment. Among notable B corps are Patagonia and New Belgium Brewing, and the list keeps growing. Customers that prefer to buy from companies with CSR programs may be further attracted to purchasing from a B Corp.
Corporate Social Responsibility aims to make a positive impact in local communities and the world. Customers and investors are increasingly interested in these issues and are voting with their wallets. CSR programs are an increasingly appealing option to employees, improving both employee retention and attracting new talent. When it comes to making a positive impact, there are more choices than ever. You can start with small steps to reduce your carbon footprint with ViiBE’s virtual call center, invest in developing a full-fledged CSR program, or even apply for B Corp certification. There has never been a better time to invest in sustainability.
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