![[cml_media_alt id='4582']14. Benefits of CSR for organizations[/cml_media_alt]](data:image/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27790%27%20height%3D%27357%27%20viewBox%3D%270%200%20790%20357%27%3E%3Crect%20width%3D%27790%27%20height%3D%27357%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E)
Social responsibility benefits both the company and the society in which it operates. Organizations have started to look at these CSR activities across barriers and take internal processes into areas that are beneficial to the organizations.
In addition to a stronger reputation, high employee retention rate, employee motivation, a very good relationship with public organizations, CSR brings the following 5 impactful benefits for organizations:
INOVATIA
The culture of innovation in companies is a debated topic, but innovation in the context of social responsibility brings a huge benefit to both organizations and society. For example, Unilever, using the “lens of sustainability” as described by Geoff McDonald - Unilever Global VP for HR, Marketing, Communications and Sustainability, has managed to innovate new products: a hair conditioner that uses less water.
EMPLOYEE ENGAGEMENT
Not involving employees in the company is a huge disadvantage. Sara Lee Company has created cross-functional global teams to create a sustainability strategy, and Solo Cup Company has created the „Sustainability Action Network” to guide employees to get involved in community CSR activities.
CUSTOMER ENGAGEMENT
The best example of this benefit is Walmart Company which created an advertising campaign to raise awareness about the environment and people's product choices. With a positive message, customer-organization communication is much smoother.
CUTTING COSTS
The first step in engaging in sustainability is the simple mindset of reducing costs. Whether we are talking about using less packaging or less energy, these cost cuts add up to highly visible results.
BRAND DIFFERENTIATORS
If in the past CSR was a simple way to differentiate yourself as a brand, now things have gotten more complicated. For example, the Coca Cola vs. Pepsi war is one of the longest-running rivalries, with both wanting to get the biggest market share. Both Coca Cola and Pepsi adopt similar but at the same time different CSR strategies: both companies have water reduction strategies or use sustainable packaging.
Indeed, the effort put into a CSR activity is great and the results are seen in the long term, but it certainly steers the economy towards a favorable area.
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