How Social Responsibility Can Affect the Bottom Line
Job seekers consider a variety of factors when weighing their employment options. For many, they are seeking not only a competitive pay & benefit package, but also seeking to join an organization that best aligns with their own sense of purpose and values. This creates an opportunity for employers to promote themselves not only to their consumers and communities, but also to potential employees.
Further, according to research by the global nonprofit organization Business for Social Responsibility, companies that engage and integrate social responsibility into all areas of their business may see a positive impact on their bottom line.
Social responsibility is an important topic in today’s world. Some consider it the “right thing to do” from a human perspective, but it can also provide other benefits from a business perspective. As described by the BSR, below are additional benefits that are derived from corporate responsibility:
Given the potential advantages across such a range of recruiting, marketing and operational metrics, it is clear that companies that choose to invest the time, energy and consideration in social responsibility initiatives are positioning themselves as forward thinking innovators, which in the near and long term, can enhance and promote future organizational success.
- Improved recruiting & retention: Social Responsibility initiatives can make it easier to attract and retain talented and diverse employees seeking employment that best reflects their personal social priorities.
- Reduced costs: Employers can reduce their overall operating costs by making more efficient use of energy and materials. This can have a positive impact on disposal cost as well.
- Enhanced brand image and reputation: Customers and potential employees are more likely to pursue relationships with brands that demonstrate values more closely aligned with their own.
- Increased customer loyalty: Companies improve customer loyalty through actions that increase satisfaction. Studies indicate that many customers make decisions based on factors that go beyond price. Companies that are able to best engage and understand their customers' sense of social responsibility are better able to understand the needs of existing customers and prospects.
- Increased productivity and quality: By making improvements to working conditions and increasing the employee role in decision-making, employees may feel more engaged, leading to higher employee morale and increased productivity.
- Greater innovation: Increased recruiting and retention of employees with diverse backgrounds, expertise and perspectives can give an organization further opportunities to innovate- fostering new approaches and bringing attention to developing issues and concerns.