Do socially responsible companies actually do better?
A study by public relations and marketing firm Cone Communications and Echo Research revealed that corporate social responsibility is now a reputational imperative, with more than 90 percent of shoppers worldwide likely to switch to brands that support a good cause, given similar price and quality. CSR (corporate social responsibility) is no longer a luxury choice for businesses. It’s become a necessity, a compulsion, a means to win customers, and turn them into loyal followers and eventually fans. So, if you come to think of it, the question with which we began this post is kind of rhetorical. Because, anyone who’s everyone knows that corporate vision is no longer confined to simply maximizing self interest. It has expanded to ensuring sustainability, manufacturing environment friendly goods, working towards bolstering greener surroundings, and continuously giving back to the society in the form of charity and volunteer work. It has become part of the two way road where the more a company gives, the more it’s bound to receive. Socially responsible companies along with example: Google – the company was able to bring down its power requirements by 50% with its Google Green concept that was aimed to promote efficient use of resources. Xerox - Community Involvement Program is a donation and support program that Xerox has been running since 1974. The company earmarked $1.3 million in this program and encouraged 13,000 employees to participate. As a result, not only the company earned better community recognition, but also earned employee commitment. Target - Since 2010 this brand has donated more than $875 million dollars. Almost five percent of its earnings go to charity work. The two pillars of corporate success: The two pillars or should we say the founding stones upon which relies the success of any business entity are – employees and customers. It’s not the brick and mortar that makes up a corporation. It’s the people; the people who are working for it and for those for whom the corporation is working. Findings of a survey – Proof that socially responsible companies actually do better In 1999, Cone Communications released a press release that talked about the observational findings of consumer responses to companies that were actively involved in cause related marketing. As per the observation, each year since 1993, almost 80% of the people that were surveyed reported, agreed to having a more positive image of the companies that were involved in any cause they supported. Furthermore, two third of the samples surveys agreed that they would likely switch to retailers and brands that participated in cause-related marketing. In another Roper Green Study it was revealed that 10% of the Americans, who truly care about environment, happen to be strong opinion leaders - both socially and politically. These are the people whose opinions strongly impact consumer behavior and their buying decisions. How being socially acceptable strengthens these two pillars
- Employees -
- Customers -