5 Reasons Why Social Responsibility Matters in Business

5 Reasons Why Social Responsibility Matters in BusinessBusinesses and economic systems are bending under the expectations and obligations to be socially responsible. On a global level, governments and private corporations must be more and more accountable for their impact on the environment, and for who they help or hurt.

Here are 5 reasons why social responsibility matters in business:

1. Consumers Look For Corporate Social Responsibility (CSR)

  • More than 88% of consumers think companies should try to achieve their business goals while improving society and the environment
  • 83% of consumers think companies should support charities and nonprofits with financial donations

2. Employees Look For and Perform Better for Socially Responsible Businesses

  • 32% of employees would seriously consider leaving their job if their company gave no/little money to charity
  • 65% would seriously consider leaving their job if their company harmed the environment
  • 83% would seriously consider leaving their job if their employer used child labor in sweatshop factories
  • CSR practices are seen as important to employee morale (50%), loyalty (41%), retention (29%), recruitment of top employees (25%) and productivity (12%)

3. It is a competitive advantage (Harvard Business Review)

  • Every company needs “a unique position – doing things differently from competitors.” Philanthropic projects show a particular and distinctive identity.
  • “CSR can be much more than a cost, a constraint, or a charitable deed – it can be a source of opportunity, innovation, and competitive advantage.”

4. Capitalism focused strictly on profit is no longer viable

  • Investors will sever business ties with companies that are caught damaging the environment or engaging in socially damaging practices.
  • A fourth sector of the economy is emerging – “for-benefit.” Different from non-profit, for-profit, or governmental sectors, this is a group that operates on earned income but gives top priority to an explicit social mission over profit for the sake of profit.

5. It is a moral obligation

  • Domestically – businesses need to give back to the communities and nations that provided them the opportunity to succeed
  • Globally – economic and security concerns/events can immediately have a negative global impact. Investing, developing, and doing-no-harm will strengthen all sectors of business.

– Mary Purcell

Source: Movingworlds.org
Photo: Chieforganizer.org