If you’re wondering why there seems to be increasing focus on the importance of corporate social responsibility (CSR), look no further than today’s consumers. According to an article published in Business News Daily, these potential customers are looking beyond material products or quality services when selecting a company. How products are made (or services are rendered) is often more important than what is being offered.
Defining exactly what goes into CSR is a bit subjective, although there are some recurring themes. Specific types of corporate social responsibility can vary from company to company, but the article points to four broad categories:
- Environmental efforts
- Ethical labor practices
From the article:
CSR is an evolving business practice that incorporates sustainable development into a company’s business model. It has a positive impact on social, economic and environmental factors.
The article says the face of consumerism has changed now that Millennials hold a majority of buying power. These buyers are looking for greater transparency from the companies with which they choose to do business and gravitate not to major brand names, but to products with ties to socially-conscious causes.
According to the article, that’s precisely why CSR should matter to all businesses—stakeholders (such as investors, customers and potential employees) want to see and understand that a company’s mission goes beyond generating revenue.
Also from the article:
If you are considering sustainable activities that aren’t legally required yet, don’t wait. By adopting socially responsible norms early on, you can set the bar for your industry and refine your process. Undertaking CSR initiatives is truly a win for everyone involved.
Given their magnitude, corporations adopting CSR practices can play a profound part in solving social and environmental problems. In this way, corporate social responsibility benefits business, society and ultimately the world.