Customers are becoming more knowledgeableabout the impact of businesses on the environment and society. This is makingthem more invested in supporting socially and environmentally responsiblebusinesses. A 2017 American survey found that 92% of respondents were morelikely to trust a company that supports social or environmental issues. Thisshows the impact that CSR practices can have on a business’s success. Beingsocially responsible is becoming increasingly important and profitable tobusinesses.

Corporate social responsibility (CSR) refersto a self-regulating model that aids companies in their efforts to be sociallyaccountable to themselves, stakeholders, and the public. This accountabilityextends to the impact businesses have on all aspects of society, includingsocial, economic, and environmental aspects. If a company engages in CSR thenit should enhance society and the environment. Examples of CSR behaviour can beinitiatives that benefit the environment and initiatives that promote racial andgender diversity.

Benefits of CSR

There are numerous benefits for companies thatchoose to engage in philanthropic and ethical practices.

First, engaging in CSR can help a brand’sidentity and recognition. Customers and shareholders prefer to engage withbrands that align with their personal views and values. For example, cosmeticscompany LUSH is known for its environmentally friendly packaging andanti-animal testing views. Customers that care about these issues will feelmore inclined to support LUSH and recognise it as an ethical company.

Also, being ethically responsible can improveprofits. Businesses that engage in CSR practices will motivate customers to buyfrom them. As customers are becoming more aware of social and environmentalissues, more of these customers are invested in researching a business’s CSRpractices. This means that these customers will be more drawn to ethicalcompanies that engage in CSR practices.

An Example Of Corporate Social Responsibility

Major car manufacturer, Ford Motor Company isone of the companies that is putting CSR at the forefront of its businesspractices. It invested $11 billion to design 40 new electric and hybrid carmodels by 2022. The company is making a very real effort to popularise eco-friendly,energy-efficient car models, which will largely benefit the environment.