Skip to content

Why have Companies become Concerned about Corporate Social Responsibility in Recent Years?

Home » Corporate » Why Companies become Concerned about Corporate Social Responsibility in Recent Years?

Companies are paying more attention to CSR - WHY?

Corporate Social Responsibility

You can change the world when you care for the world. The thoughtfulness and compassion towards people and society is the business approach in a new corporate culture. It aims at delivering environmental, economic, and social benefits.

Corporate Social Responsibility is not just about the company’s profit but more about doing a greater good for society. As the employees demanded a change in corporate culture, Corporate Social Responsibility came into being.

But, why are businesses concerned, and what approaches do companies incorporate to adapt Corporate Social Responsibility in their culture? We will discuss this new corporate culture in detail in our article

Why is there a need for Corporate Social Responsibility?

Corporate Social Responsibility aims to improve shareholder trust and long-term profits through high ethical standards and positive public relations. By doing so, it will reduce the legal and business risk if they take responsibility for corporate actions.

However, it does not evolve all of a sudden. It came into the picture when businesses faced pressure from crucial groups in society.

Consumer Pressure

Consumers are demanding businesses to become socially responsible. In North America, it is found that people are willing to buy products from companies whose environmental and social performance is excellent.

In contrast, they would punish the companies with a poor social performance by not buying their products. Like, Starbucks did face enmity from anti-globalization rebels for mistreating the staff and wasting water.

Supply Chain Pressure

As the consumer’s trust and loyalty towards a company are influenced by social responsibility, their supply chain visibility also becomes important.

Many companies are taking part in Corporate Social Responsibility both within and internally the supply chain. If you visit the website of IKEA, you can check how “People and Planet” are written in their policy.

Pressure from Shareholders and Investors

About 61 per cent of Americans own shares. However, the selling and buying of shares depending on the social performance of the company. You must know how investors would want every detail of how their money is being used by the company they are funding.

Also, it has been reported that about 83 per cent of professional investors tend to invest in a company that follows Corporate Social Responsibility.

Why should businesses adapt to Corporate Social Responsibility?

Companies are now increasingly being competitive to become socially responsible. Also, if the companies are socially responsible, that can present a positive image to both shareholders and consumers.

Let’s discuss the need for businesses to embrace Corporate Social Responsibility.

Moral Obligation

If businesses are faced with security and economic concerns, they can have an immediate negative impact on their image. So, it would be highly beneficial for them to invest in social responsibility.

Also, businesses will succeed when they give back what nations and communities have bestowed to them over time.

Strengthen Brand Perception

Your company’s image will improve if you adapt social responsibility. Moreover, consumer’s perception matters to boost the company’s profile. So, if a company actively engages in social activities and responsibilities, the brand will become publicly recognized.

Engaging customers and employees

Businesses need to build loyal relationships with clients and customers. Here, Corporate Social Responsibility can help to engage with clients and customers. The positive relationship will increase profits and boost sales.

Also, it is important that businesses take care of their employees. The Responsibility will only be efficient when team members and leaders are working together in harmony.

How do companies approach Corporate Social Responsibility?

Companies approach Corporate Social Responsibility differently depending on the corporate culture, available resources, and assets.

Cause-Related Marketing

Companies incorporate cause-related marketing when they are associating with a civic organization and charitable trust for their products sale as donations. The motive is to increase awareness about a social program while promoting its brand name.

Social Marketing

Businesses use marketing techniques to fulfill the desired social goals. Mostly, the non-profit organizations and governments use the marketing option to reach a wider audience with their social cause.

Some examples of social marketing are TV commercials and cinematic technology to create a dramatic and emotional effect.

Corporate Philanthropy

When businesses send charitable gifts from their organization to any NGOs, it is corporate philanthropy. However, most of the time, companies would want their donations to become publicly recognized rather than being anonymous.

This is done to market their company as well as helping the society.

Final Thoughts

So, Corporate Social Responsibility can help the business boost employee engagement, increase creativity and innovation, and create a positive workspace for all. Therefore, businesses are realizing the importance of having a corporate social responsibility model in their culture.

However, the motive of Corporate Social Responsibility is to make you a socially responsible employer to make your employees align with the values of your company.

By Darren Finkelstein

Author Bio:

Darren Finkelstein is The Accountability Guy®. This involves being an International Accountability Coach, Business Advisor, Mentor, Author, and Speaker.

Darren works with high-performing teams and individuals across Australia/NZ, UK, USA, Europe and Asia to help get results, achieve their wildest dreams, and smash goals. He does this by leveraging over 30 years of experience working in the corporate world and small businesses.

A successful business owner himself, Darren won the Australian Entrepreneur of the Year award for Dent Global after building a wonderful lifestyle business, successfully sold and exited after 15 years.

Before this, Darren worked for over 10 years at Apple Inc. as ‘Manager of Commercial Markets’ during the inspirational Steve Jobs era. While there, he was awarded the prestigious Golden Apple Award.

Darren’s lessons in accountability can help individuals and teams at all levels of a business or organisation across the globe, and are based on actions and results:

  • Get clarity - know what to do first
  • Get started - know what to do next
  • Get Sh!t Done - know what to do more of

How can The Accountability Guy® help you?

Whenever you and/or your team are ready, here are four ways to become more accountable...


    1. Take "The Accountability Scorecard"

    How accountable are you? Discover your accountability score and increase the probability of smashing your goals and Getting Sh!t Done!. Take the quiz

    2. Read my new book
    "The Accountability Advantage - Play Your Best Game"

    Eliminate procrastination and overwhelm, and start playing your best game. Buy a copy

    3. Study my online course "Accountability Made Easy"

    For high-performing goal-kickers who want to achieve even more success in work and in life. Enrol now and become accountable in a matter of hours. Enrol now

    4. Book a complimentary 1-on-1 coaching "Unboxing Session"

    Start delivering on your promises and get your team to do the same. Book here.

For more information on all my coaching programs, click here.


Are you a high-performing entrepreneur who wants to achieve more?

Mastering accountability is your superpower!

Categories

Book your FREE Unboxing Session with
Darren Finkelstein – The Accountability Guy®

Together we’ll examine exactly where you’re at, what’s worked and what hasn’t. We’ll take a look at your priorities to set the path moving forward.


Each Unboxing Session includes
  • 45-60 min obligation-free Zoom call to discuss your goals, promises and commitments
  • Examine your priorities
  • Review your ‘To-Do List’ and we’ll dig-in to how you will implement
  • Together, we will create a plan and set timelines

Click here to book your free session.

 

Book your FREE Unboxing Session with
Darren Finkelstein – The Accountability Guy®

Together we’ll examine exactly where you’re at, what’s worked and what hasn’t. We’ll take a look at your priorities to set the path moving forward.


Each Unboxing Session includes
  • 45-60 min obligation-free Zoom call to discuss your goals, promises and commitments
  • Examine your priorities
  • Review your ‘To-Do List’ and we’ll dig-in to how you will implement
  • Together, we will create a plan and set timelines

Click here to book your free session.

 

By Darren Finkelstein

Author Bio:

Darren Finkelstein is The Accountability Guy®. This involves being an International Accountability Coach, Business Advisor, Mentor, Author, and Speaker.

Darren works with high-performing teams and individuals across Australia/NZ, UK, USA, Europe and Asia to help get results, achieve their wildest dreams, and smash goals. He does this by leveraging over 30 years of experience working in the corporate world and small businesses.

A successful business owner himself, Darren won the Australian Entrepreneur of the Year award for Dent Global after building a wonderful lifestyle business, successfully sold and exited after 15 years.

Before this, Darren worked for over 10 years at Apple Inc. as ‘Manager of Commercial Markets’ during the inspirational Steve Jobs era. While there, he was awarded the prestigious Golden Apple Award.

Darren’s lessons in accountability can help individuals and teams at all levels of a business or organisation across the globe, and are based on actions and results:

  • Get clarity - know what to do first
  • Get started - know what to do next
  • Get Sh!t Done - know what to do more of

How can The Accountability Guy® help you?

Whenever you and/or your team are ready, here are four ways to become more accountable...


    1. Take "The Accountability Scorecard"

    How accountable are you? Discover your accountability score and increase the probability of smashing your goals and Getting Sh!t Done!. Take the quiz

    2. Read my new book
    "The Accountability Advantage - Play Your Best Game"

    Eliminate procrastination and overwhelm, and start playing your best game. Buy a copy

    3. Study my online course "Accountability Made Easy"

    For high-performing goal-kickers who want to achieve even more success in work and in life. Enrol now and become accountable in a matter of hours. Enrol now

    4. Book a complimentary 1-on-1 coaching "Unboxing Session"

    Start delivering on your promises and get your team to do the same. Book here.

For more information on all my coaching programs, click here.


Are you a high-performing entrepreneur who wants to achieve more?

Mastering accountability is your superpower!

Categories