Corporate social responsibility [CSR] is one of the hottest trends in business. Today, brands can’t simply sell a product or service; they should also support a cause to stay competitive. Cone Communications' Ebiquity Global CSR Study showed it's a fact that 84 percent of consumers seek out ethical products whenever possible, and Neilsen Research says 55 percent are willing to pay more money for those products. With mindful consumers increasingly paying attention to the ethics of the brands they buy from, having a quality CSR program is more important for running a business than ever. Plus, keeping customers happy is just one of the many benefits of CSR. Companies with social responsibility programs perform better than those without, in a multitude of ways.
Importance of Social Responsibility
There are many reasons for the importance of CSR in business. Today, 93 percent of the world’s top companies release annual CSR reports. These companies likely aren’t participating in CSR programs for altruistic reasons alone. The fact is, over the past few decades, a large amount of research has shown that corporate social responsibility benefits employees, customers and businesses alike.
Attract and Retain Top Employees
One of the biggest corporate social responsibility benefits is the ability to attract and retain high-caliber employees. One recent survey found that 72 percent of graduating students claimed they were seeking jobs where they could make an impact. Because employees are looking for careers with meaning, a company with a successful CSR program can attract the top available talent.
Even more impressively, companies with solid CSR programs see increased engagement and retention rates among employees. These companies also get more creativity and improved work results from employees. This is likely because workers are more willing to personally identify with companies they view as ethical. And many employees are therefore willing to work harder and even make sacrifices for a responsible company.
Keep Customers Engaged
Customers care about the footprint of the products they buy these days. By engaging in CSR programs, you are sending a message to your customers that your company cares about the larger community, not just profits. This makes customers care about your brand and want to engage more with you. Further, a customer is more likely to share and recommend a product that he believes to come from a responsible, ethical brand.
Maintain Positive Brand Image
One huge benefit of socially responsible marketing is that it improves your brand image. Research shows that 42 percent of how a consumer feels about a brand is based on its CSR. What’s more, companies with high reputation scores retain customers that are willing to buy, recommend, invest in and share products with others.
Ultimately, consumers want to feel good about the products they buy. They want to know that the companies they patronize are doing good in the world. The more you can improve your brand image, the more customers will become brand ambassadors for you. This gives your business much-coveted, word-of-mouth marketing.
Social responsibility is an ethical theory in which individuals are accountable for fulfilling their civic duty, and the actions of an individual must benefit the whole of society. In this way, there must be a balance between economic growth and the welfare of society and the environment. If this equilibrium is maintained, then social responsibility is accomplished.
What it Means to be Socially Responsible and Ethical?
The theory of social responsibility is built on a system of ethics, in which decisions and actions must be ethically validated before proceeding. If the action or decision causes harm to society or the environment, then it would be considered to be socially irresponsible.
Moral values that are inherent in society create a distinction between right and wrong. In this way, social fairness is believed [by most] to be in the “right”, but more frequently than not this “fairness” is absent. Every individual has a responsibility to act in manner that is beneficial to society and not solely to the individual.
Find out how Social Justice and Environmental Justice are intrinsically interconnected.
When Do Social Responsibility and Ethics Apply?
The theory of social responsibility and ethics applies in both individual and group capacities. It should be incorporated into daily actions/decisions, particularly ones that will have an effect on other persons and/or the environment. In the larger, group capacity, a code of social responsibility and ethics is applied within said group as well as during interactions with another group or an individual.
Businesses have developed a system of social responsibility that is tailored to their company environment. If social responsibility is maintained within a company, then the employees and the environment are held equal to the company’s economics. Maintaining social responsibility within a company ensures the integrity of society and the environment are protected.
Often, the ethical implications of a decision/action are overlooked for personal gain and the benefits are usually material. This frequently manifests itself in companies that attempt to cheat environmental regulations. When this happens, government interference is necessary.
Unfortunately, social responsibility and ethics are often not practiced by American companies outside of U.S. borders, which makes regulation difficult.
The Pachamama Alliance
Pachamama Alliance is an organization that seeks to instill social responsibility in the industrialized or “modern” world. Our partnership with the indigenous Ecuadorian tribe, the Achuar, began when they recognized the imminent threat of oil drilling in their home. This tribe, hidden deep in the Amazon forest, has inhabited this area for thousands of years and is at risk of total destruction.
The goal of The Pachamama Alliance is to restore a sense of active decision-making to the people and companies of the modern world. Currently, the Achuar and their home are in danger because of our addiction to crude oil. This addiction is the result of a faulty system of beliefs that disregards the environment, its inhabitants, and the consequences of our actions. A change in this universal mentality is imperative if the Achuar are to survive this threat; in order to do so, pandemic social responsibility is essential.