Is corporate social responsibility a one-time activity for your company?

If the answer is ‘yes’, you’re missing out an opportunity to increase goodwill for your brand and attract new customers for your business.

Social responsibility has witnessed an increased importance among companies over the last few years. As per a recent PWC Global CEO Survey, 64% of CEOs now consider CSR as an integral part of their business strategy. Whether it's by empowering women, helping the environment, or trying to end poverty, more and more companies are incorporating social responsibility into their overall business strategy. There are many reasons why a company might engage in social responsibility, few of them are outlined below for ready reference.

Improves Company’s Brand Image

The public perception of a company is vital for customers and shareholders. Being socially responsible bolster a company’s image and builds its brand image. By being active in community, a company projects a positive image for not only being profitable but for also being socially aware.

Expands Customer Base

Having a social responsibility policy strengthens & impacts the buying decisions of customers. Building relationships with customers is the cornerstone for any business. For example - a bank that offers loans to marginalized section of the society, will be viewed positively by the community and it might boost the sales for the company.

Creates A Differential

When corporates are involved with the community, it generates a trust among the community for them and a differential is created making the company stand out. For example, Tesla Inc. reduced the gap between the corporate world and social responsibility by offering electric-powered cars and products that are environment friendly.

Coca-Cola in 2010, started by 20 initiative to empower 5 million women entrepreneurs across the company’s value chain by 2020.

In a nutshell, both company and community benefit from CSR initiatives. India is a country which with its inequalities, operate in first, second and third world simultaneously. The government is obviously doing its share but organizations have a larger responsibility because their success depends on the society they operate in. The CSR and sustainability strategy should be drawn in congruence with the company's business goals.

CSR can only be driven when people working at the ground level recognize it and the community that is targeted accepts it.