Social responsibility in business

Importance of social responsibility in business (CSR) is a way of running companies based on managing the impacts that their activity generates on their clients, employees, shareholders, local communities, the environment and society in general.

The purpose of every  corporate social responsibility  (CSR) strategy is for organizations to be recognized for their practices in sustainable development for the benefit of society and care for the environment.

Types of social responsibility in business

There are four types of social responsibility in business. We present them below so you can evaluate which one aligns with your business and its organizational culture:

• Corporate Philanthropy – Consists of promoting the well-being of the community through the donation of funds. This type of CSR can be executed through matching gift programs where the company matches the amount donated by its employees to a charitable cause, thus doubling the total contribution.
• Corporate volunteering – It consists of motivating your employees to do volunteer work hours for a charity. Commonly, companies offer a monetary donation to the charity for each hour of volunteer work their employee performs.
• Environmental leadership –The business implements operational practices that reduce carbon emissions, encourage recycling of materials and products, and reduce the need for raw materials without affecting product quality. In addition, alliances are created with environmental groups to participate in their efforts.
• Ethical employment practices – Some ways to exercise this type of CSR include offering competitive salaries and compensation packages, generous maternity leaves, and college tuition reimbursements.

Importance of social responsibility in business

The concern with social well-being must be one of the main focuses of companies nowadays. It is very important that businesses send a clear message to both the public and the media, showing a position of social responsibility. But why is it important to be socially responsible? Some items go hand in hand with this idea and bring many benefits to the business.

1-Innovation

Innovation is present in the minds of all entrepreneurs, as this is the only way for companies to survive in increasingly competitive environments.

Social awareness can greatly benefit companies that use it, since their product or service needs constant renewal.

For example, your company can look for new forms of production using less water or deforesting less. By doing this effectively and communicating this to the public and the media, your company will earn big points.

2-Improved public image

Companies that demonstrate commitment to various causes are perceived as more philanthropic than companies with non-existent social responsibility. In addition, customers feel better when consuming products or services from companies that are good for society as a whole.

3-Differentiation

A large company should look to differentiate itself from others and social responsibility can help. One way to do this is to embody the concept and link it to your brand in a relevant and sincere way.

4-Costs cut

Who doesn’t want to cut costs in their business ? Whether it’s reducing energy costs, using less water or using less packaging to package products, being socially responsible is cutting unnecessary costs that will bring future benefits.

5-mind in the future

The future is sustainable and, from now on, the company’s image must be concerned about such a significant issue.

6-investor attraction

Investors or would-be investors who are putting money into companies want to know if it is being used wisely.

This means that corporations must have solid business plans, but also that they must have a strong sense of corporate social responsibility.

7-Engaged employees

Social responsibility motivates employees to become more involved with the company and to be proud to be part of it. In addition, they enjoy working in a place whose media image is positive and inspiring.

More than 60% of employees who pride themselves on working in sustainable companies are engaged with work.

When the importance of social responsibility is recognized as part of a company, it has life-changing consequences and also promotes a sense of pride in everyone involved. Of course, the company can grow with or without social responsibility, but doing good for others brings incredible rewards.