Why Building Socially Responsible Brands is Important

The covid-19 pandemic illustrated that social responsibility is indispensable in today’s businesses. Robust Institutional commitment to social justice is not just an ethical good but at the same time also benefits the bottom line of the business. Consumers choose the companies that they do business with carefully and expect those brands to use their influence and resources to improve society. Businesses that remain silent in the face of oppression sometimes may face boycotts.

How does social responsibility benefit a company?

Extensive research proves that CSR and a strong sense of employee purpose actively contribute to increased employee engagement. Engaged employees have a 17% increase in productivity and are 21% more profitable.

Giving back to the community is a virtuous circle in which engaged employees are enriched by volunteering opportunities that further engage and encourage them.

CSR gives people the leverage and the platform they need to make a difference in local and global communities. If one finds a CSR program that’s in line with the company’s values, then the business truly has the opportunity to create a substantial positive impact. 

Creating a CSR program that gets you noticed will produce a fantastic boost in your brand awareness and overall online brand affinity. Research has shown that employee beliefs behind CSR initiatives can impact workplace attitudes, trust in top management, organisational pride, job satisfaction, and even performance. Your employees are your biggest brand ambassadors— lead with authenticity, and authentic press opportunities will soon follow. 

Last on the list, but certainly not least, is the employer branding benefits that good CSR initiatives can generate. It can be a struggle to attract and retain talent. Still, research has shown that 82% current generation workers consider CSR a significant factor when deciding on their next employer, and 66% would consider a pay cut if it meant working for a more socially responsible company. 

How can corporate leaders be socially responsible?

Five broad categories have emerged as central to our understanding of socially responsible leadership:

1. Self-Understanding & Personal Integrity

Socially responsible leaders have achieved a sense of self-authorship or personal agency. They critically assess and actively discern how their personal gifts, talents, resources, and abilities might best contribute to the broader human community. They articulate and live with a sense of authenticity, purpose, and ethical integrity.

2. Taking Seriously the Perspective of Others

Socially responsible leaders engage and listen compassionately to alternative and diverse perspectives and people. They demonstrate the ability to work in a team or a community of people and to interact and communicate effectively with diverse others in a variety of social situations.

3. Contributing to a Larger Community

Socially responsible leaders articulate, actively reflect upon, and live a commitment in their life and work to contribute to a community beyond themselves – locally, nationally and/or globally. They actively participate in civic and political processes and demonstrate an ability to think systemically about social problems and opportunities in light of some normative understanding of the just society.

4. Knowledge and Intellectual Competence

Socially responsible leaders have the ability to think critically. They show the ability to apply knowledge from their expertise or discipline of study to their particular life experiences and social situations in fruitful ways and in dialogue with other perspectives and disciplines.

5. Striving for Excellence

Socially responsible leaders sustain long-term commitments worthy of their attention over a lifetime or career. They consistently strive for self-improvement and higher standards, and through their actions and words they effectively inspire others to do the same. They exercise ethical decision-making and leadership by developing creative and innovative responses to both emerging and persistent human and societal questions.

What are the key components of a CSR strategy?

Economic social responsibility begins with being profitable. Before a business can give back, it must be sustainable. Sustainability includes making a profit for shareholders, paying its employees an appropriate wage, paying business taxes and meeting other financial obligations.

In addition to ensuring ethical workplace practices, you should also look at the environmental impact your business makes. If possible, consider using recycled materials and clean energy. Go beyond meeting the minimum environmental requirements and look at how you can exceed those requirements.

Consumers are more likely to buy products and utilize services from companies they trust. A part of building that trust is abiding by the laws that regulate your business. Paying the required taxes, adhering to labor laws and allowing inspections are all examples of legal social responsibility.

Discretionary social responsibility means using your company’s time and resources to contribute to the community at large in whatever way is meaningful for you and your brand. This may include providing your employees with opportunities to volunteer; donating money, services or products to charitable organizations; or initiating your own charitable organization that ties into your company’s mission and goals.

Conclusion

It is widely recognized that poverty reduction and sustainable development will not be achieved through government action alone. Policy makers are paying increasing attention to the potential contribution of the private sector to such policy objectives .A number of core development issues are already central to the international CRS agenda. They include labour standards, human rights, education, health, child labour, poverty reduction, conflict and environmental impacts. However, the CSR agenda needs to be locally owned if it is to make a significant contribution to local development priorities . This means creating a space to explore the relationship between business and society at a regional, national or local level. As the extremely successful entrepreneur, Raymond Ackerman, founder of the multi billion Pick n Pay, often cites: ‘Doing good is good business’. By integrating CSR into core business processes and stakeholder management, organisations can achieve the ultimate goal of creating both social and corporate value.