Corporate Social Responsibility and Your Bottom Line (Part 2)

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Corporate Social Responsibility

In an earlier article on how corporate social responsibility (CSR) benefits your organization, we covered the fast-evolving consumer expectations on businesses’ social and environmental impact, how implementing a program can benefit an organization, and four key areas to focus your CSR initiatives.

When implemented properly, a CSR program can improve your brand’s image, boost employee engagement, and attract loyal higher-value customers while facilitating innovation and collaboration among various business units.

A CSR policy touches many different areas of a company, with many moving parts that require the collaboration of various departments (e.g., procurement, marketing, etc.)



Here’s how you can coordinate the many components in your CSR initiatives to ensure their effectiveness and maximize the results:

Identify a Focus And Determine Objectives

Some organizations make the mistake of supporting too many causes in their CSR. As a result, they don’t have the capacity to manage all the projects effectively. Not to mention, a scattered focus can dilute your message and make your company appear insincere.

Narrow your CSR program to focus on a couple of major causes that align with your corporate image, brand message, corporate culture, and values. Make sure you have sufficient resources in place so all the initiatives get the appropriate attention.

You should also determine the objectives of your CSR program to make sure they’re supporting your organization’s overall mission and vision. Determine what success looks like, then set measurable goals and determine the right metrics so you can gauge the program’s effectiveness and fine-tune the strategies.

Understand Cost And Allocate Proper Resources

CSR initiatives involve financial decisions on many levels. Whether you’re providing materials for a program, allowing employees to volunteer during work hours, or donating money to a cause – there’s a cost involved.

In addition, you need to hire the right personnel to oversee the execution of the CSR programs, which is also a cost you need to take into consideration.

While there are many intangible benefits to implementing CSR initiatives, it’s important to ensure that they’re fiscally feasible for your organization so it doesn’t become a financial burden. Terminating a program before the goals are achieved could impact your company’s credibility.

Engage Employees

CSR can help attract more talent and improve employee retention when you engage employees and encourage them to contribute to the programs.

Communicate the vision and values behind your CSR initiatives to encourage employee participation. Use leadership endorsement to help generate excitement and increase employee buy-in.

You can also increase employee involvement by keeping them up-to-date (e.g., sharing milestones achieved) and soliciting their input to shape your CSR strategy.

Communicate To Stakeholders

Besides employees, inform others associated with the organization about your CSR program. You can further the cause by sharing information about the initiatives with your customers, business partners, and the community.

Leverage the opportunities to build positive relationships with the community. For example, by sharing your initiatives via press releases, social media, sponsorship and networking events.



However, be cautious when positioning these communications as they have the potential to backfire if they’re perceived to be overly self-promotional and self-serving.

Collaborate Closely With Key Partners

Promoting your CSR efforts can help align your organization with business partners and opportunities that may not have been obvious or available in the past.

In addition, make sure you’re establishing relationships with external parties involved in the initiatives, such as community partners or other sponsors. Set expectations and ensure that your objectives are aligned to ensure a fruitful collaborative relationship.

Poor communication can lead to misunderstandings that could sour a relationship, especially when there are many moving parts and various parties involved. Create a clear communication plan from the start to enhance collaboration and ensure success.

Incorporate CSR Into Marketing

As more consumers seek to buy from brands that are socially responsible, communicating your CSR initiatives through your marketing messages can help set your brand apart, attract more customers, increase brand equity, boost your public image, and cultivate customer loyalty.

You can also use your CSR program to create a sense of community among your audience and enhance your brand’s customer experience. This can build relationships with customers beyond products and services to foster loyalty that increases customer lifetime value.

CSR is a long game that builds goodwill and evokes positive feelings toward your brand. These initiatives can then be weaved into your brand story and reinforce the brand identity so you can attract customers that are willing to pay more for your products.

Integrate With Procurement

Procurement and supply chain management is a major component for many organizations. In the past, these back-office tasks haven’t been getting much attention from management or customers.

However, today’s consumers demand total transparency from the brands they buy from. They want to support companies that are socially and environmentally responsible in all aspects of their operations.

As such, the procurement process can provide opportunities for your organization to get involved in various CSR initiatives. For example, sourcing from fair trade suppliers, reducing wastage in the supply chain, and using sustainably sourced materials has the potential to significantly reduce risks associated with procurement.

CSR can also lead to innovation in the procurement process that can enhance cost-efficiency and interdepartmental collaboration for the product development and manufacturing processes.

Conclusion

When implementing your CSR initiatives, stay flexible and adaptable so you can meet the needs and expectations of the various stakeholders to maximize the impact of the program.



Keep in mind that it takes time for CSR to gain traction and create meaningful changes. To support this ongoing process, make sure to gather feedback so you can fine-tune your strategy and keep it current.

Having a CSR strategy that’s in alignment with the organization’s mission and culture is the key to long-term success. It allows you to reap the many benefits of engaging employees and fostering long-term customer relationships.

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