Corporate social responsibility as we see it today has undergone many changes since its inception. The evolution of corporate social responsibility started when Howard Bowen published “Social Responsibilities of the Businessman” in 1953. Initially, the scope of CSR was narrowly defined but today, it has widened and determines several aspects of business operations. Through the 1960s, 1970s, and 1980s, the evolution of corporate social responsibility was steady and rather slow. The 1990s’ with growing globalization, led to the adoption of CSR on a large scale.
Ever since then as awareness of the utility of CSR for success spread, corporate social responsibility business has been a part of almost every organization. Several agencies assist companies to carry out CSR in the correct manner. CSR Reporters is also one such firm that helps to design, implement, monitor, and evaluate CSR practices across industries. According to CSR, companies should contribute to societal goals. This is done through volunteering, charity, taking measures to reduce the negative impact on the environment, and so on.
Corporate social responsibility business is easy to carry out smoothly if the company is in profits no matter how small.
Economic downturns are inevitable in businesses. When a recession hits, most companies put in efforts to reduce their expenditure. They evaluate what is necessary to run their business and spend only on the indispensable aspects. The costs on additional materials are often cut down. And, CSR is one of the primary targets when it comes to reducing costs. It is often seen as an unaffordable luxury in times of economic fluctuations.
However, over the years, it has been realized that CSR actually boosts brand value even during financial downturns. For this purpose, smart strategizing is imperative. CSR Reporters helps organizations to effectively manage their CSR projects and maximize their social return on investment.
So, here are three preliminary reasons why companies should not scale down their CSR initiatives:
A] Talent Won’t Stay
About 70% of employees state they would not be inclined to work for a company without a strong purpose. Nearly 90% of those working at a company practicing CSR and working with a strong purpose state they are more motivated, inspired and loyal. It has been found that 1 in 4 employees are eager to have a cut in their pay to benefit the environment.
All this is enough to justify why you shouldn’t be scaling down on CSR. Although CSR might reduce your expenditure momentarily, it will drive skilled employees away, which will have a significant impact on your company’s future growth and success.
Now, with the assistance of CSR Reporters, CSR projects can be implemented constructively, thereby retaining talent and lowering attrition rates.
B] Customers Won’t Buy
77% of customers are willing to buy from companies that put in efforts to make the world a better place. CSR initiatives especially during a recession have been found to improve brand image by leaps and bounds. Consumers respect brands which are willing to contribute to society in their financially adverse conditions.
Customers are, therefore, likely to continue purchasing from you if your CSR efforts are consistent during the recession. However, you might have to change the design of your CSR plans during the recession. In this regard, CSR Reporters can help you identify problems and align solutions, thereby tailoring a CSR project design that best suits the circumstance.
C] Investors Won’t Invest
Slacking on CSR is something that should be avoided by organizations seeking the support of shareholders. 41% of investors evaluate companies’ CSR policies before they invest in them. Your not scaling down CSR even at times of recession portrays your dedication to working for the welfare of society.
To help you attract more investors, the CSR Reporters communicates with the stakeholders and informs them of the status of interventions, shedding a positive light; thereby alluring investors to your brand. All in all; scaling on CSR during economic downturns is NOT an option. Although it might seem like an appropriate option for the time being. in the long run, it can have an extensive impact on your business. The time of recession shall pass, but your reputation in the market will stay. Therefore, ensure you don’t make a blunder of your reputation trying to save on finances spent on CSR.
You can discuss your position and worries with CSR Reporters who are expert in the field and can help you throughout!
