When a business announces that they are investing in relationships with minority-owned suppliers or switching all its product packaging to green alternatives, it is essentially practicing Corporate Social Responsibility. 

You may have heard of these initiatives in the past, like Lego's plan to use environmentally friendly materials for all its toys by 2030 or Salesforce's 1-1-1 philanthropic model that gives 1% each of product, equity and employees' times to the nonprofit sector.

Let's find out how and why companies tailor their business operations for environmental and social impact.

What does corporate social responsibility mean for businesses?

Corporate Social Responsibility (CSR) refers to a company's commitment to operating ethically and sustainably while considering the impact its activities have on society and the environment. CSR efforts have companies looking beyond making a profit and satisfying shareholders, and instead asking questions like, "How can we contribute to positive change in the world?" 

Boosting volunteer efforts among employees

Sticking to environmentally conscious processes (aka sustainability)

CSR is also known as corporate citizenship because businesses that practice it recognize they have a responsibility to everyone, from their employees and customers to the communities they operate in, and the earth as a whole.

The types of corporate social responsibility(CSR)

Businesses often practice CSR in many different ways, depending on their priorities, structure and industry. But, most businesses’ efforts usually follow at least one of these forms:

With jarring statistics like the consistent rise of the earth’s temperature, many companies are focusing on their environmental footprint by launching eco-friendly practices. These may include taking steps to reduce their carbon emissions, switching to renewable energy sources, increasing their water and energy efficiency and conservation, or even promoting recycling. 

Another form that CSR programs may take is philanthropy and donating money to certain causes. We see it all the time; businesses focus on causes related to their industry or turn to more global projects that have a broad positive impact.

Fair business practices involve transparent operations and ensuring that business operations comply with laws and regulations. This form of Corporate Social Responsibility also includes fair treatment of employees and stakeholders; basically ensuring that everyone involved with the business experiences a net positive.

With 66% of companies making active changes to support their employees’ mental health (Fortune), this form of CSR is often considered a low-hanging fruit and a small way to make a big positive impact. It may involve companies promoting a work-life balance, providing opportunities for professional development, or ensuring employee health and safety.

Benefits of corporate social responsibility to businesses

One reason companies are motivated to engage in CSR beyond the environmental impact is the effect it has on employees. From increasing motivation and promoting a sense of purpose to reducing employee turnover (Glavas, 2012), your business’ CSR is strongly tied to employee job satisfaction. 

It’s also interesting that 6 out of 10 millennial employees won’t work for an employer that doesn't have strong Corporate Social Responsibility initiatives (Cone Communications). 

On the business side, CSR can increase reputation, employee satisfaction and productivity and increase savings long term.

Creating a workplace culture that prioritizes corporate social responsibility often contributes to a positive and fulfilling atmosphere for employees. Workers feel proud to belong to their team and the business at large when they believe the organization is socially responsible. 

Employees in this environment are also more likely to cooperate with coworkers and even go out of their way to help (Springer). This sense of corporate responsibility often creates a positive work environment that could increase employee retention rates, boost morale, and lead to increased profitability in the long run.

Gartner has found that employees are very interested in seeing how their job links to an overall purpose and meaning. Businesses that are committed to a CSR strategy can help workers find a greater sense of fulfillment and allow them to connect their personal and professional lives. 

Walking around with the knowledge that the company has CSR efforts can help employees connect with their job on a deeper level.

Employees are proud to be associated with a company that has a positive reputation (Sabrina Helm). That means CSR activities that support communities and build a strong brand image will do more than help these communities thrive.

They will also help employees recognize that their career is connected with the company's overall success.

Companies invested in socially responsible programs often provide upskilling opportunities for their employees, allowing them to grow in their careers. These may include training related to their job, but also social and environmental issues that empower them to contribute in meaningful ways.

By investing in this way, companies can signal to employees that they are committed to their growth, both personally and professionally.

Top talent is often drawn to companies that demonstrate a commitment to social responsibility. As the study by Cone Communication shows, employees are more likely to take a job, and stay with a company that aligns with their values. 

In this way, CSR plays a huge role in a company's ability to attract talent and increase employee retention. 

Implementing sustainable and environmentally friendly practices can help businesses save cost in the long run. Think about energy-efficient measures that reduce carbon footprint but also slash electricity bills, or waste reduction that increases resource management. 

Even responsible supply chain management can help mitigate risks and prevent potential legal and reputation issues, saving businesses from expensive lawsuits, fines, and future damage control.

Corporate Social Responsibility encourages businesses to think creatively and find innovative solutions to problems in the environment. Through R&D investments, businesses can develop more sustainable products and services that:

Attract environmentally conscious customers

Attracting investments and building stakeholder relationships

Businesses that have a focus on CSR practices won't just attract employees; they have also been shown to attract investments from socially responsible investors. Additionally, strong Corporate Social Responsibility practices help build trust and positive relationships with external stakeholders like regulators, suppliers, and local communities. (KTH Royal Institute of Technology).

These relationships with key stakeholders can create business opportunities and provide support during tough business times.

Why corporate social responsibility matters to the public

Corporate Social Responsibility (CSR) is often responsible for shaping how the public sees a business. In this section, we’ll talk about specific ways that CSR influences the public’s perception of a company.

Brand differentiation and customer loyalty

Businesses often differentiate themselves from their competitors through CSR by showing they care for certain causes. 65% of customers will move towards a socially responsible company, that is, a business that focuses on sustainability, social causes, and ethical labour practices (Customer Think).

It’s quite clear that by aligning with the values of their target audience, businesses can gain loyalty among their customers and beat out the competition.

Many businesses will find unique opportunities to engage and relate with their customers during their social responsibility initiatives. For example, asking employees to volunteer will often catch the attention of the public. A business may even invite customers to the volunteer opportunity to provide a larger labour force.

This engagement will allow customers to join the company’s corporate responsibility journey, offering their time and efforts, but also feedback and suggestions. 

By involving customers, a company can strengthen its relationship, increase customer satisfaction, and meet customer expectations in a bigger way.

One way to engage customers in your CSR journey is to use digital signage. Your business could display your current efforts on in-store screens and call for volunteers and donors. This is a seamless approach that can integrate to your existing digital signage messaging with no extra cost.

The surveys are in and more and more customers prefer to buy from sustainable businesses. For example, consumers willing to pay a premium for ethical products grew by 200% between 2011 and 2015. Additionally, the ethical market grew by 35% in 2021 as more people move towards renewable products (Ethical consumer).

When a business shows a clear commitment to Corporate Social Responsibility, it can appeal to, maybe even attract, these ethical consumers who are willing to pay more for their products or services because they are cruelty free and contribute to great environmental outcomes.

How organizations can increase employee engagement in CSR

Businesses that launch CSR initiatives often do it with active contributions from their employees, and the more involved employees are in these initiatives, the more successful they tend to be.

Employees also invest time and energy into these initiatives because they want to give back to the community and contribute to measurable social impact.

But sometimes, businesses struggle to get employees on board with social responsibility programs. In this section, we’ll talk about strategies that can help with employee relations turn that around.

One way organizations can increase employee engagement is to show the purpose it’s connected to. Nobody wants to work on projects that don’t have a meaningful endpoint.

But when employees see that their work contributes to meaningful and positive societal impacts they can find purpose in their daily tasks. For example, your staff might not be thrilled about performing company activity on a weekend unless they realize it’s a program that actively places puppies in loving homes, for example? 

Involvement in corporate social responsibility initiatives

Instead of launching Corporate Social Responsibility programs top-down, a better approach might be to first ask employees what causes they are most passionate about supporting. Employees will be much eager to participate in a CSR program that addresses a cause they care about.

For example, your company may announce a program about bird conservation. Unless your employees care about it, you may not find a lot of participation or enthusiasm. Instead, you might find better results once you realize that most of your staff want to promote plastic recycling.

Pushing initiatives that the team is passionate about will increase the number of engaged employees and gain a larger buy-in.

Corporate digital signage is another great way to boost employee engagement. Nobody can volunteer and devote time to an initiative they don't even know exists. Luckily, you can use digital signage to tell them all about it. From screens in break-rooms to internal communication hubs, narrowcast messages about the current projects, their goals, and what you need from employees, and watch involvement soar.

Employees are more likely to engage when they feel like their personal and professional growth is important to the organization. By integrating CSR-related skill-building opportunities like training programs and workshops, you can get a bigger buy-in, not to mention gain more productive employees.

Recognizing and celebrating contributions

Acknowledging and celebrating the contributions employees make to Corporate Social Responsibility initiatives can help to boost engagement. The public recognition could be through your company’s internal communication channels or at company-wide events.

These can reinforce employees' beliefs that their input matters, both to the cause, and to the company, creating a positive feedback loop that leads to more engagement.

When companies launch CSR initiatives that don’t align with their values, employees can easily see through it. And even though they’ll have a net positive effect, these initiatives could be seen by employees and the general public as an attempt to hop on a trend. The result is that employees won’t participate and the public may rally against it. 

For Corporate Social Responsibility initiatives to resonate with employees, they need to align with the core values of your organization. Contrast the previous instance with an initiative that aligns with the company’s overall brand and value statement. It will strengthen employees’ connection to the organization and help create a sense of authenticity and engagement.

It’s almost impossible for employees to participate in Corporate Social Responsibility initiatives that they know nothing about. Your business may even be filled with team members looking for opportunities to contribute to society.

Volunteering not only allows employees to contribute directly to causes they are passionate about, but it also promotes team building, and helping your employees contribute in this way is often an easy win.

Here are some great volunteer opportunities you can offer employees:

Tutoring or mentoring programs where employees can work with youth in the area

Volunteer programs that allow employees to donate their time and resources to the community 

Matching donations that employees make to nonprofits and charities or at fundraising events

Promoting corporate social responsibility with ScreenCloud

There are many benefits to Corporate Social Responsibility, from improving the world businesses operate in, to helping employees find fulfilment in their job, and even giving customers a chance to support businesses that care.

CSR has been around for awhile, and based on the statistics we see on climate change, businesses won’t run out of ways to become better corporate citizens anytime soon.

ScreenCloud can allow you to gain more buy-in for current and future CSR projects from your employees and customers by helping you manage your digital signage. You can create unique messages with hundreds of template options, cast them on as many screens as you need, and manage your content from a single place.

Sign up for a free demo and see how ScreenCloud can help your business.

Businesses are increasingly expected to behave ethically and sustainably. But what is Corporate Social Responsibility or CSR, and how can you promote it?

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What is corporate social responsibility?

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