If you are unfamiliar with corporate social responsibility, you are certainly not alone, but you will be hearing a lot about it in the coming years. According to Global Affairs Canada, “Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner.”
In this article, we’ll look at how CSR can positively impact your company and its operation when it is implemented with sincerity.
One of the primary ways to establish CSR is to think about how your company can help your community. Contributing to local community programs, for example, is a great place to start. Everything from personal involvement to direct financial support can help enhance your company’s reputation within your community.
A second way to build CSR is to demonstrate that your company is thinking about its impact on the environment. Recycling is important, but so is using eco-friendly packaging and containers. Additionally, embracing low-emission and high-mileage vehicles is another good step, as this lowers your company’s carbon footprint.
A third area to consider is how your company interacts with the marketplace. Conduct business wisely, advertise your efforts, and use public relations to brand your company as a socially responsible one. Treating shareholders, suppliers, vendors, and contractors fairly will also help to improve your CSR.
One of the most important areas of corporate social responsibility occurs in the workplace. The advent of social media has helped fuel the dispersal of information and if your business isn’t treating its employees in a fair manner and/or has unsafe work conditions or unfair employment practices, the word will get out and tarnish your reputation. There has never been a more important time to treat your employees well.
Embracing CSR not only serves to increase shareholder and investor interest, it is expected. Socially-conscious companies are considered smart and stable investments. A company that has fully embraced CSR will find greater buyer interest and even a higher selling price when the time comes to sell. Most buyers want excellent customer loyalty with no “skeletons” hiding in a company’s “closet.” They also are seeking companies with happy and loyal employees, low employee turnover, and a good reputation within the community. CSR helps achieve all these goals and more.
Ultimately, corporate social responsibility works to create additional value. When you invest in CSR, you are not only investing in your employees, your community, and the environment, you are investing in achieving a higher selling price and making your business more attractive to buyers. You can’t afford not to think about corporate social responsibility.
Copyright: Business Brokerage Press, Inc.
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