Jan 6 4 min read
How Social Responsibility Can Boost Your Revenue
Social responsibility is more than just doing your part. It also brings in more consumers, more engagement, and more revenue for your business. Several studies have shown that businesses that fully integrate social responsibility into their system can expect good financial returns on their investments. Customers pay attention to the way companies react to widespread issues and often break their loyalty to companies with negative values. All eyes and ears are on your brand, and it pays to stand firm. The benefits of social responsibility are endless. The sooner you start implementing these attributes, the better off your business will be.
Consumers are aware of local, national, and global issues. As a result, they’ll be looking at the businesses they support for their responses. These issues highly influence their buying decisions. Depending on the company’s move, consumers will either buy more and continue investing, or they will forever walk away from the brand. It’s never been more critical than now for companies to make their values clear and take stands.
According to IO Sustainability's research, customers of companies integrating CSR fall increasingly into two categories. "Aspirationals" - who think of a brand as part of the cultural fabric they identify with (a company today can hope to attract 39% of customers into this category). Then, the "advocates," who proactively promote a brand and support its values (a successful company can count on up to 20% of its customers as advocates, helping the brand on social media and with peer referrals).
Improve Your Company’s Image
Your reputation means everything. Aside from your high-quality products and services, several areas need to be up to standard. Some of these areas include outstanding customer service, after-sales support, and involvement with civic causes. Make an effort to show the public how you care and what moves your business is making towards the environment as a whole. Usually, companies with good CSR policies attain better media coverage. The more positive range your business achieves, the better chance you have at gaining a larger audience. Not only a larger audience but the right audience as well. These individuals will have values that align with those of your brand.
Over the last half-century, the stock market value of companies has shifted from being equal to its brick and mortar value to being based on primarily intangible assets such as reputation and patents. Most well-known brands today are worth vastly more than the sum of their goods and services. Their reputation is what gives them their advantage over the rest.
Attract and Retain Employees
The beauty of word of mouth is that it reaches everyone - not just consumers. Individuals are looking to work at an establishment that they’re proud of. When a company has a strong CSR strategy, it showcases compassion, fairness, and open-minded. They not only look to treat the outside world correctly but to their employees and business as well.
If the outside world can see how well your work environment runs, that will result in your reputation being strengthened. It shows the rest of the world that everyone part of your business takes social responsibility seriously and is actively involved in the community. In addition, CSR efforts also encourage a more productive and positive work environment for employees. Several opportunities can become available to your team, such as volunteering, charities, etc.
Investors are going to be pickier than your usual consumers. They want to make sure that they’re partnering with a brand that not only they approve of but that the whole world approves of. When a business has a solid social responsibility compass, investors take an interest. Most investors have one common goal: to have greater returns than invested funds. Studies show that 61% of investors consider CSR a sign of "ethical corporate behavior, which reduces investment risk." This is why a company’s social responsibility is an essential part of the criteria when deciding whether or not to invest in a company. In addition, CSR also improves the company’s stock prices - another attractive trait for possible investors.
Saving money also means more money. A strong CSR strategy can enable customers to be willing to pay more for your products and services. In addition, you also gain more consumers because of it. The company’s work-life improves, employees, perform better, investors become more interested, and your consumers become more loyal. Turnover can cost companies thousands of dollars, but you’re gaining revenue thanks to a CSR strategy.