5 Reasons Why Social Responsibility Matters in Business
Businesses and economic systems are bending under the expectations and obligations to be socially responsible. On a global level, governments and private corporations must be more and more accountable for their impact on the environment, and for who they help or hurt. – through the thoughts of – Mary Purcell
Here are 5 reasons why social responsibility matters in business:
1. Consumers Look For Corporate Social Responsibility (CSR)
More than 88% of consumers think companies should try to achieve their business goals while improving society and the environment
83% of consumers think companies should support charities and nonprofits with financial donations
2. Employees Look For and Perform Better for Socially Responsible Businesses
32% of employees would seriously consider leaving their job if their company gave no/little money to charity
65% would seriously consider leaving their job if their company harmed the environment
83% would seriously consider leaving their job if their employer used child labor in sweatshop factories
CSR practices are seen as important to employee morale (50%), loyalty (41%), retention (29%), recruitment of top employees (25%) and productivity (12%)
3. It is a competitive advantage (Harvard Business Review)
Every company needs “a unique position – doing things differently from competitors.” Philanthropic projects show a particular and distinctive identity.
“CSR can be much more than a cost, a constraint, or a charitable deed – it can be a source of opportunity, innovation, and competitive advantage.”
4. Capitalism focused strictly on profit is no longer viable
Investors will sever business ties with companies that are caught damaging the environment or engaging in socially damaging practices.
A fourth sector of the economy is emerging – “for-benefit.” Different from non-profit, for-profit, or governmental sectors, this is a group that operates on earned income but gives top priority to an explicit social mission over profit for the sake of profit.
5. It is a moral obligation
Domestically – businesses need to give back to the communities and nations that provided them the opportunity to succeed Globally – economic and security concerns/events can immediately have a negative global impact. Investing, developing, and doing-no-harm will strengthen all sectors of business.