When you Google “risk management and corporate social responsibility”, you find at least 962,000 scholarly articles. Many people study the connection between these two concepts.
It's clear from the research, companies who are serious about their corporate social responsibility fair better in the long run. On the other hand, businesses who take shortcuts with their carbon footprint and supply chain practices often leave themselves open for a PR disaster.
That's the danger of calculating the gains from your corporate investments using only cash flow models. Corporate social responsibility efforts rarely make sense from a short term profitability standpoint.
You have to consider instead the capability that CSR has for risk management. And, in turn, the potential benefit it has for people around the world. But CSR benefits go far beyond basic risk management, it can also open your company up for new streams of investment and innovation. Read on to learn more.
1. Increase Your Versatility
Investing in CSR will make you a more versatile company that can embark on joint ventures, invest in new technology, and advance research and development. In turn, this will lead to new avenues of opportunities that aren't open to traditional companies.
By investing in CSR, you can apply for financial resources from earmarked funds from socially conscious investors. The better your company positions itself, the more people will see what you are trying to accomplish and want to support your business’ growth.
2. Become a Contributing Community Member
A company with values built on society’s reality won’t have to worry about which way the social tides turn.
They will have embedded themselves as a contributing member of their community and have a valued voice that can advance social change and establish real growth opportunities in emerging markets.
3. Insulate Your Business from Government Intervention
Your business should also pay attention to its environmental footprint for its own benefit. When you put green initiatives in place, you are also insulating your company against government intervention.
Many companies spend millions of dollars on the back end to meet government regulations, instead of finding a way to shape their processes so that meeting that standard is part of the outcome.
4. Create a More Productive and Engaged Workforce
CSR can also be used as a tool to maintain a happy workforce. If your employees feel like you hear them and pay them a living wage, they will enjoy their jobs more and can focus and be more productive. Happy employees, means happy customers.
5. Demonstrate Your Brand Values
CSR also gives you the opportunity to differentiate yourself as a brand by demonstrating your brand-specific assets to customers. You may be one of many insurance companies out there, but you’re the one who is volunteering your staff member’s time to invest in the community. Who do you think millennials will want to call?
The True Cost of Corporate Social Responsibility
At the end of the day, you're a business out to make money and the cost of a CSR initiative is only the cost of its development. The campaigns I create for your company will be low-cost community based organic growth opportunities.
Contact me today for consultation and a customized CSR marketing plan that will lead your business to a brighter future bolstered by a community of support.