Corporate social responsibility (CSR) is a business model that helps a company be socially accountable to itself, its stakeholders, and the public. It is self-regulation that shows a business’s responsibility to improve communities and society through environmental and social measures.
Examples
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CSR boosts profits and sustainability –
- Companies with shared values are increasingly sought by consumers. Cone Communications found that 87% of consumers would switch brands for a good cause.
- Boost employee morale and output. Engaged and productive employees work for a company that makes a difference. The Indian Institute of Management Ahmedabad found that CSR programs boost employee engagement and productivity.
- Ethical and sustainable business practices reduce risk and liability. Environmental polluters may be fined and sued.
- Investors and lenders increasingly seek CSR-focused companies. Global Reporting Initiative found that 75% of institutional investors consider CSR when investing.
- The Tata Group’s CSR efforts have reduced its environmental impact. The company wants to cut greenhouse gas emissions by 30% by 2030.
- CSR can inspire companies to innovate to reduce their environmental impact or improve employee and community lives. Many companies invest in renewable energy or create eco-friendly products.
These are a few ways CSR can boost profits and sustainability. As demand for ethical and sustainable products and services rises, more companies will adopt CSR practices. However, CSR is not a panacea. Not every company that adopts CSR will profit. The benefits of CSR vary by company and initiative. The evidence suggests that CSR can boost a company’s bottom line and long-term sustainability.