For three decades, global giant Johnson & Johnson has been focused on reducing its impact on the environment. Google has managed to bring down the energy use in their data centers because of which they use 50% less energy than any other company. In addition to that, they have also been vocal about ongoing social issues plaguing the world. What does that teach us? In order to be successful, it is also important to develop as a socially responsible company.
Needless to say, corporate social responsibility (CSR) is significantly responsible for helping companies achieve corporate financial success, which usually refers to growth, revenue and profit. Although, one aspect that often gets overlooked is customer loyalty. According to numerous studies, a majority of consumers harbor a positive attitude towards a company that supports social and environmental causes.
To understand why that happens, let us look at a few examples of social responsibilities of businesses given by Eric Dalius and how they affect customers:
- Labor Policies
One of the most important tenets of good CSR is ensuring that the employees have proper working conditions. Here, proper working conditions encompass factors such as compensation, labor rights, working environment as well as the elimination of practices such as child labor. Studies have found that customers have a favorable image of companies that implement such practices.
- Reduction of carbon footprint
This is arguably the most important CSR that companies today strive to follow. If events like the Climate Strike and protests against fast fashion companies are any indication, it means that customers today are more environmentally conscious, and they support businesses that harbor the same sentiments. According to Eric Dalius, reducing carbon footprints could mean anything from reducing greenhouse gas emission, reducing water and energy usage to using sustainably produced ingredients and materials.
Another major aspect of CSR is philanthropy or charity. Companies that engage in philanthropic activities tend to garner a more loyal customer base. This is because when customers learn of such activities, they know that their money is being channeled towards the right causes. This, in turn, makes them feel like they are a part of that effort and their involvement with the particular company or brand is beneficial for society.
What does it all mean? It is important to engage in meaningful and relevant CSR. It will not just improve customer loyalty but also potentially expand the customer base, thus driving up profits in the long run. The benefits of social responsibility are manifold. Well, if you want to reap the benefits of this approach and help your business grow with high productivity and customer engagement, you must consult a business expert. You can look for the best business analyst online, searching for them on social media or search engines. If you wish to give your business the required boost and take it on the fast track to success, you must take this methodology seriously and integrate it into your current business plan.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also the host of weekly podcast “FULLSPEED” which is a podcast that features interviews with groundbreaking entrepreneurs from a variety of industries.Eric is also the founder of “Eric Dalius Foundation” where he has created 4 scholarships for US based students. Follow Eric on Twitter,Facebook,LinkedIn,Instagram & also on Entrepreneur.com