CSR as a business case
Corporate social responsibility (CSR) improves financial performance in the short and long term. In other words, doing good for people and the environment leads to doing well financially.
CSR’s impact on improving profits can be direct and indirect. At times, CSR is directly instrumental in reducing costs and increasing revenues, as is the case with energy conservation, or expansion of the customer base. However, other advantages that CSR offers are only indirectly manifest. For instance, companies that are actively involved in CSR have much lower rates of employee absenteeism due to illness. In these cases, the companies experience an indirect benefit from their CSR efforts.
The benefits of CSR
Companies that have carefully embedded CSR in their core business tend to outperform their competitors. Outcomes include:
- a better market position through cost reduction, increased turnover and innovation
- new sales and partnership opportunities
- a strong reputation as a result of greater distinctiveness and trust amongst customers, in the labour market and in the community
- a strong business culture: employees are more motivated, more productive and healthier if they can make a positive contribution to society through their work
Check out the trends and issues to learn more about CSR as a business case.