Why companies should consider upping their CSR game
Corporate social responsibility (CSR) is an avenue for companies to create a positive impact on the society. These positive effects could be economic, environmental or ethical, and they may sometimes overlap. For example, a company that uses recyclable materials or with a recycling initiative creates an impact economically and environmentally. Consequently, these firms often invest in CSR initiatives because they also provide numerous benefits to their businesses.
Some companies with great CSR programs usually have already expanded their businesses to a point where they can fund their programs without hurting the actual business. But this should not always be the case. Smaller companies can just collaborate with existing programs by nongovernmental organizations (NGOs) or charitable institutions.
1. It is usually supported by the government
Some governments provide tax incentives for companies with great CSR initiatives. The image of a company typically affects the decision of any government if they want to have business with you because your business could also reflect them. And since governments usually provide contracts to private companies, your business could have an edge if you are prioritizing ethical practices.
For example, Canada has developed some strategies to help companies in the country to reinforce their CSR practices. One of them is called “Doing Business the Canadian Way: A Strategy to Advance Corporate Social Responsibility in Canada’s Extractive Sector Abroad,” and it aims to provide stronger support and investments for companies with CSR projects.
2. It could drive more investors
Most professional investors prefer companies that are known for their social responsibility because they want to be socially responsible as well. Somehow, your business’s CSR also reflects on them.
With the ethical aspect of some CSR initiatives, some investors also take it as a sure sign their money is invested in the right place.
3. Consumers are likely to trust you
Many studies have cited the connection between consumerism and social responsibility. For instance, a study on ethical consumerism suggests that consumers support the CSR initiatives by some companies and, in effect, back the companies themselves as well. Aside from that, consumers also act negatively and even tend to boycott on companies that are socially irresponsible.
4. It adds overall value not just to the company but also to its stakeholders
Apart from investors, CSR programs can boost the morale of both stakeholders and employees knowing that there is a bigger purpose to the work they are doing. This creates a positive working environment, enabling everyone in the company to work harder.
What type of CSR should you consider?
Usually, businesses consider CSR initiatives that are closer to their industry as the positive impact could also benefit the company itself. An example of this would be The Lego Group. The company has checked everything on the list — ethical practices, transparency, supporting important causes, and more importantly, it made its brand a sustainable one.
There are different types of CSR that any business can consider — philanthropic efforts, volunteering commitments, company diversity and labor practices, and environmental conservation. Usually, these causes overlap just like with Lego’s case.
As mentioned, smaller companies still need to consider developing a CSR plan. Several crowdfunding companies like Exponential, Inc. (XPO2) allow corporate clients to reach several NGOs with different causes. Your company can choose to support campaigns and projects that align with your business’ values.
One of the many objectives of XPO2, a cause-related technology marketing firm, is encouraging other companies to be forthcoming about their charitable works. And apart from being open about your charitable efforts, you should also be sure that the organizations you support are legitimate. Led by its CEO, French-American entrepreneur Dom Einhorn, XPO2 makes sure that every campaign, charity or organization is carefully vetted and is truly dedicated to change the world.
Through XPO2’s cashless contributions, merchants are also able to assist consumers in contributing to their chosen campaigns. This contribution option would be possible for consumer once they installed the XPO2 extension in their browser. This extension enables them to choose the campaigns they want to support. Once the consumers (and contributors) go to any participating merchant’s website, the browser extension will track their purchases. Upon checking out, consumers will see that a certain percentage of their purchases will go directly to their chosen NGO or campaign.
Partnering with companies like XPO2 would allow smaller businesses to contribute in the efforts to improve the planet by creating a positive impact through NGOs.
XPO2 is planning to support over 10,000 NGOs worldwide by 2023, covering a wide range of causes, from access to education to animal shelters and more. And being its partner would just be the first step in making your company the type of business that consumers and investors will look up to. This is not only for the sake of their reputation but also to inspire people and other companies, competitors or not, to do the same.
There are several ways to boost the image or brand of your business. But choosing to support NGOs through crowdfunding platforms such as XPO2, your company does not only portray a good image — your company actually makes an impact.
