Governments typically have their hands full. From dealing with social, political and international issues, simple yet serious issues that affect the community might fall through the cracks. Sadly, this results in the harm of the citizens who have no way to change this tide to their favor. Luckily, the intervention of well-meaning businesses could help reduce, if not eliminate, the issues that exist in society.
From climate change to hunger, the intervention of these corporations could not only lead to a better society but also improve the perception that the public has of the business. But when is it the right time for your startup to embrace a CSR strategy? Well, the earlier, the better, and the more benefits that you can reap from this strategy.
Here is why a CSR mindset is great for the growth of your business:
Solidify Your Reputation Early
Reputation is an intangible asset that most businesses pay PR agencies millions to build. With a solid reputation, customers will immediately think of your business as a trustworthy one. They will feel motivated to buy from you as well as being associated with you. A CSR strategy such as helping the homeless can help improve your brand perception.
Even for inventors who are developing new ideas that will impact the surrounding communities in one way or another, embracing Corporate Social Responsibility at critical stages like marketing their invention will help them build their reputation, according to this invention guide from Idea4invention. Other stakeholders such as investors and employees will also change their perception for your startup once they see your efforts.
It Will Reduce Employee Turnover
With the millennials and iGen employees poised to soon be the primary demographic in the modern workplace, the age-old incentives for employee retention will become borderline obsolete. While employee benefits and huge paychecks will always be appreciated, this new group of employees might need more than these incentives to stay. They are concerned with the role they play in their community, growth opportunities and the reputation of the company for which they work.
What’s even worse is that 60% of millennials are open to the idea of shifting jobs, according to Gallup. Luckily, CSR can help to reduce your employee turnover rates by showcasing your business as one that cares. For most, seeing that they make touch the community – in addition to employee benefits – will be incentive enough to stick with your company. As a startup employee turnover can be detrimental, making CSR even more pivotal.
CSR Will Affect Sales
Politics, environmental issues are no longer things that brands can stay out of since most have social media accounts which they use to build engagement. With brands being involved with the society, customers are now more than interested to know the inclinations of the businesses they transact with. In fact, Americans boycotted Nike in 2018 after they made Colin Kaepernick the face of their new campaign since it appeared that the company had an inclination against president Trump’s policies.
While this might have been a minor blow for Nike, it can be detrimental for a startup trying to gain traction in its industry. As such, the trick would be to use CSR as a tool to increase sales by showcasing that you are on the side of your customers. At the same time, you will be doing good for the community.
Invest Short Term Profits for Growth
Growth is an asset for the modern day startup. The quest to gain more market share, improve brand recognition and eventually bring in more investors can be fueled by CSR. Companies can easily invest the short term profits that they earn into CSR with the aim to grow their business. For some investors, it is a dream to invest in a company that has a CSR mindset, which will help to attract more investors to your business.
The fact that it also improves employee retention is also great since it increases the chances that you will grow your business with valued employees. Such employees are quite instrumental in managing the business in its later stages as they understand how it ticks.
Gone are the days when businesses could take the middle ground in the issues of society. Choosing to link your business with a cause could easily increase your competitiveness and accelerate growth. Choose the right CSR inclination and watch your business flourish.