Being socially responsible means to give back to the community, take up philanthropic initiatives and create positive social value in the process. Indian Businesses are increasingly becoming more socially responsible not just to build a positive brand around their company but to also make a difference. A difference that is redefining the way India looks at the social and economic needs of the less privileged millions, whose development is inevitably linked with the future of the nation.
When businesses are conscious of their social and environmental impact on the world, they can benefit the society by giving back and helping to find solutions to everyday issues. When they conduct their business ethically and with sensitivity towards social, cultural, economic, and environmental issues, they open up new development opportunities for the communities, they serve. Businesses have huge potential to affect change in their communities and the environment, when they invest in corporate social responsibility (CSR) initiatives — and in doing so, they can also strengthen the bottom line through enhanced brand reputation and effectively managing the communications and marketing to reinforce existing customers, attract new customers and increase market share.
Customers also feel that when they use a product or service of a socially responsible company, they are contributing towards the betterment of society in their own small way. The more socially responsible the company, more chances of having a loyal and supportive customer base, further adding to brand loyalty and customer stickiness. As more and more companies begin to see the impact their socially and environmentally conscious efforts have on a consumer’s perception, the more chance there is that they will begin initiatives of their own.
A focus on social responsibility is particularly important to attract, retain, and increase the commitment and engagement of employees. Employees like working with a company that has a positive public image and is constantly in the media for good reasons. They take pride in the fact that they work for an organisation that is contributing towards making life beautiful for the less-privileged. They may even volunteer to contribute or come up with innovative ideas for how to make a positive impact in the community and meet a business need at the same time. Hence CSR initiatives and positive social image can lead to ease of hiring quality staff, employee retention and motivation, all of which leads to increased innovation and productivity.
An increasing number of investors in business now factor CSR norms into their selection and due diligence processes to include socially responsible companies and exclude those that do not meet certain environmental, social and governance (ESG) standards, helping them in the process to avoid companies that might pose a greater financial risk due to their ESG practices. In a nutshell, strong CSR programs can improve a company’s stature in the eyes of the investment community, and thereby ease its ability to access capital from them.
Growth and development cannot take place in vacuum and is accomplished by building sustainable partnerships that translate strategies into on-ground reality. Companies have to focus on the products or services that they offer as part of their main business. They might also not have the expertise required to design, implement and manage large scale community development projects. Hence companies with strong social responsibility programs are constantly looking for non-profits to be the recipient of grants, matching gift programs and partner for managing their CSR initiatives. Hence these initiatives also help non-profits find support beyond individual donors, to zealously sustain their development programs.
In a nutshell, companies with well-defined CSR programs can improve their profitability and brand reputation, attract more investors, job candidates and customers, increase employee engagement, support non-profits and contribute towards building a beautiful and equitable world in the process. Hence socially responsible businesses are indeed a win-win situation for all.
Ms. Monika Chopra DVP – Social Performance Management
Satin Creditcare Network Ltd
- Date: 23rd Dec’20
- Client: Ms. Monika Chopra
- Category: Blogs