Implementing Corporate
Social Responsibility initiatives can be challenging. Many companies find that
even though they like the idea of doing something to benefit the world around
them, the cost of implementing and sustaining such initiatives is prohibitive. To
the untrained eye it may be difficult to see the return on investment around
such initiatives, but there are many different ways to calculate this once you
understand all of the areas of your business that are positively affected by
CSR initiatives.
One of the
greatest benefits of a strong CSR campaign is employee engagement. According to
a 2012 Towers Watson Global Workforce study, CSR is among the most important
drivers of Employee Engagement. Provided the campaign is perceived as being
valuable to all stakeholders (internal and external), a strong commitment to
CSR instills company pride and makes the employer more attractive to potential
job seekers. If you can attract and retain good people, your company is making
money. If those good people continue to be engaged at work, then you are saving
money through great customer service, reduced turnover and absenteeism.
Furthermore, your employees will put in a much more productive day than their
disengaged counterparts. That’s the simplified version of the benefits of an
engaged workforce. Engaged employees can save you millions of dollars.
Another place to
measure your return on investment with your CSR program is to measure how your
program affects sustainability. For example, if you have a CSR program which
supports green efforts, then you will naturally want to reduce your carbon footprint.
Replacing business travel with web based meetings and training sessions, can
significantly reduce the amount of money your company spends on travel. How much
paper are you wasting? Factor that in as well.
Building a strong
public image through CSR increases brand awareness and ultimately sales, so that
is another measurement for you to consider when calculating the ROI of your
Corporate Social Responsibility program. It is a fact that people buy from
people and organizations they trust and they will remain loyal to you as long
as you continue to be trustworthy. Your CSR campaign is an investment in your
relationship with the public. A recent Cone Communications Echo Research study
states that 90% of consumers
claimed they would stop buying products from a company if they learned it was
using deceptive or irresponsible business practices. It also found that over
half of those people had stopped buying a
product or service in the past 12 months because of such behaviour. What is
your reputation doing to your business?
These are just a few simple things to monitor as you
embark on your CSR campaign. Corporate social responsibility is definitely good
for business. Any mid to large sized company can implement a successful
campaign and make it worth their while. Even small companies can engage in
activities that will positively support the world we live in and build a loyal following.
Who do you buy your products from? What charities do you support? All of this
matters. It matters to employees and to consumers alike, and it matters to
business.
