Corporate leaders in every industry benefit from giving back to their specific geographic and demographic communities and the world at large. Giving builds trust between brands and consumers, all while improving the overall reputation of the business and helping those in need. Any enterprise that prioritizes social and environmental responsibility is more likely to achieve its long-term goals related to sustainability, productivity and profitability.
Meeting stakeholder expectations
While the first people that come to mind when considering giving are the people that the company serves, stakeholders also want the business that they hold an interest in to be active with charities and social movements. Stakeholders understand that managing social and environmental risks is part of protecting their investments of time and money by safeguarding the financial performance of the business.
Companies that choose not to engage with their customer base, complementary enterprises and local communities run the risk of distancing themselves in a way that ends up hurting their agency. Being disconnected from the world at large is a vulnerability to brand recognition, public relations and revenue generation. Giving back shows that the company is involved in the world beyond simply trying to sell a product or service to clients. That makes it easier for clients to trust and relate to positive movements and emotions. This is the kind of dynamic that creates generations-long brand loyalty, dedicated workforces and smooth partnerships.
Building trust and a strong reputation
Corporate social responsibility (CSR) supports the most critical aspect in public relations — trust. Trust is at the core of market stability, customer retention, high-quality worker recruitment and effective business partnerships within a given industry. If people don’t believe that they can rely on a business to be consistent, operate with integrity and contribute to communities, getting them to engage with the company in meaningful and positive ways is nearly impossible.
By prioritizing CRS, companies can build that trust and achieve long-term sustainability. One reason is that these customers don’t need as much paid advertising in order for the company to be top-of-mind in a specific industry. Another reason that a strong reputation can translate into less spending for companies is that loyal customers become brand ambassadors. Instead of relying on hiring more salespeople, paying for more marketing campaigns or buying more advertising, the company is better able to rely on its current customer base because those customers don’t just like their brand, they are adoring fans of the brand who actively put effort into publicly praising the company and showing off its products.
Increasing employee retention
CSR campaigns can attract reliable workers who see social responsibility as a key component of a desirable workplace. This includes seeing leaders who champion causes that they support. It’s not uncommon for generous leaders to be the kind who show their employees that they matter. Feeling valued is a significant reason that many people stay in positions for years or decades. For example, animal lovers may be enticed by the fact that the company regularly donates to a local animal shelter or hosts an adoption event every quarter at a public park. That initial positive connection makes it more likely that employees, once hired, will be devoted to and invested in the company more than the average applicant.
Current employees can additionally have their sense of meaning in their role increased. A heightened sense of purpose raises the amount of satisfaction they feel with both their workplace environment and projects completed. High satisfaction levels increase productivity and reduce attrition. This saves the company resources because each team member is providing the value they are being paid to contribute and staying at the company long term.
3 ways you can give back
There are multiple ways to give back, including monetary, temporal and labor-based gifts. They can be provided to the major demographics of your customer base or the area surrounding your location.
1. Financial philanthropy
For organizations with the financial means, this can be one of the easiest and fastest ways to show support for various charitable organizations and social causes. Donations can come from a portion of the company’s profits, but there are other ways to raise and distribute funds if your agency isn’t making quite enough money to warrant direct charitable donations like this. For example, you could do a drive among your employees by having a charity collection bin near the main entrances of the business. As customers walk past, they can drop physical change into the bin or send a few dollars electronically through the company website.
2. Environmental sustainability initiatives
Being good stewards of the Earth is a movement that most people prefer. Customers and fellow businesses will often choose to work with companies or buy from organizations that raise awareness of the environmental impact their business has on the planet. This includes considerations such as carbon emissions, how they participate in city-wide recycling programs and how they handle any waste from the products or services that they provide to their clients.
You can showcase your commitment to environmental friendliness by being transparent about your waste management methods and your emissions tracking. You can also partner with local environmentalists to have some of your staff volunteer for cleanup, recycling, tree-planting and other environment-focused activities..
3. Community engagement
There are likely various small operations within your city or region that provide needed services throughout the local community. Partnering with these organizations can be done in the form of sponsoring their recurring events (monthly drives, annual charity galas, etc.), encouraging or even incentivizing your employees to volunteer at their facilities.
Running a successful business is about more than just generating revenue. Without the communities, employees, customers and business partners that help create profitable opportunities, any enterprise will struggle until it’s finally forced to close its doors. Giving back to these people and communities, either with charitable partnerships or direct financial donations, means focusing on doing what it takes to build the long-lasting, healthy relationships that ensure your business thrives.
Opinions expressed by SmartBrief contributors are their own.
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