Corporate social responsibility matters in post-pandemic survival
IN recent years, more and more businesses have engaged in active corporate social responsibility (CSR) efforts. These corporations are doing so by looking at the way they operate so that they can effectively address cultural and social issues, with the aim of benefiting both their businesses and the consumers in the process.
Today’s consumers demand that companies change the way they do business. They need to be more transparent and should take an active role in addressing social, cultural and environmental issues.
Thus, businesses that ignore corporate social responsibility run the risk of affecting their bottom line and their brand. Having a bad reputation socially and environmentally can create serious negative effects on the overall profitability and success of a company.
Nowadays consumers want to spend their money on products and services that they believe in and engage with companies that follow ethical practices that meet their own beliefs.
Corporate Social Responsibility vs. philanthropy
CSR is viewed as different from philanthropy. When properly implemented, it should become ingrained in the values and culture of a company, and positively affect the way the company does business. CSR should become inherent in the mission and message of an organization, and hold a strong place in marketing and advertising.
According to a published report of Ohio University, companies should be aware that promoting their CSR model only benefits the company if they are already
acting on their plan. Otherwise, falsely claiming to bring social change to those in need could lead to bad publicity.
Employee engagement is also tied to a company’s CSR reputation. A recent Deloitte survey found that 70 percent of millennials acknowledged that a company’s commitment to social responsibility influenced their choice to work there.
Deloitte, an international professional services network headquartered in London, acknowledges the millennials to be the largest
generational segment of the workforce. It said that companies looking to hire these workers will need to embrace CSR in order to attract and retain talent. Millennials do not just want to consume products and services made by companies that have a CSR presence; they want to take part in making these social and environmental changes also.
In the country, the League of Corporate Foundations, a network of operating and grant-making corporate foundations and corporations,
promotes and enhances the strategic practice of CSR among its members and the larger business community, toward sustained national development.
Collectively, LCF represents many decades of private sector involvement strengthened by public sector partnerships and multi-sectoral approaches in various development sectors including arts and culture, education, environment, health, enterprise development, CSR research, and training.
CSR and the world’s health pandemic
Most recently, the health, economic, and social consequences of the SARS-COV-2 virus (Covid-19) have highlighted the need for collaboration among all agents to face a scenario the world has not before seen.
Elsewhere in the world and in the Philippines, various firms have shown a great commitment to society, developing actions that alleviate the consequences of the pandemic protecting the interests of shareholders and investors as well as favoring the well-being of society in general and the vulnerable groups in particular.
The crisis resulting from the pandemic has caused a change in the way that corporations pursue their economic, social, and environmental objectives, giving greater importance to the role they must play in society.
In this new scenario, firms adopted their CSR strategies in order to establish a business commitment to society and vulnerable groups, especially those closest to them, which is the local environment associated with the origin of the firms or communities in which they operate and have a greater presence.
Corporate social responsibility is more than just a business trend or fad. Businesses that want to stay relevant to new generations and who want to help people in need around the world while increasing their own revenue and efficiency will benefit from embracing CSR.